General Motors and Ford are not doing well in their domestic market, but the two are incredibly competitive in Europe. In 2007 the honor of “European Car of the Year” went to Ford’s S-Max Minivan and this year the “Car of the Year” went to General Motor’s Opel Sedan (a Ford came in second).

Ford’s Fiesta seems to be world famous and well renowned every but in North America.

(Ford Fiesta 2008)

Ford and GM makes many high-mileage compact cars in Europe, just the cars that the American consumer is demanding right now. So, why are they not selling them in America?

Regulation barriers! Once again, regulation proves to be the productivity killing machine that it is (some regulation is proper, but the U.S. market and almost every world market is over regulated.) In order for cars to sell in America, they need to pass U.S. auto regulations (N.H.T.S.A.). It would be time consuming and costly for Ford and GM to subject their European cars to N.H.T.S.A. before they started selling them in the U.S. market; something they should do right now to save themselves. The one question here is why after passing EU N.C.A.P. regulation should they be barred from their domestic market until they further pass U.S. regulation. Particularly considering that the regulation of the wealthy European Union is, needless to say, just as good and in some cases more thorough than the U.S.

Simply put, U.S. car tests involve a full-frontal crash test at 35 miles per hour (40 miles for Europe) and a side impact test with a 3,015 lb weight (2, 090 lbs for Europe) at a 63-degree angle (90 degrees). The standards are more or less the same and any difference is insignificant. If anything, Europe is more stringent. The N.C.A.P. does require offset frontal impact test, something the U.S. regulators do not.

Regulations impede wealthy, job and investments. This is one that should go out the door for the sake of America’s belegerred auto industry.