Socialist Outlook

Socialist Viewpoint, International, Socialist Outlook and their supplements, 1984–2002

Car Wars

· Socialist Outlook no. 14, April 1989 · pp 24-27 · 4,276 words

This article was cut at the top of the page the printed contents gives it, because its title was too short to locate in the text. Its opening may carry the end of the article before it.

Women Asia Lesbian and gay The left

est in the oppression of women; that the henefits of ancialism are far greater than the paltry benefits men de get from the op pression of women under capitalism.

However, if we look at the realities of modem capitalism, it is clear that there is an institutionalised power relationship between men and women from which all men, in one way or another, benefit. Ruling class men, whose long term inter- ests are served by capitalism, obviously benefit from the oppression of women; but working class men too, in their day to day lives, benefit from the servicing roles played by women, even if these are ul timately serving capitalism.

Male violence

Next there is the total separation, al- most counterposition, of male violence against women and the oppressive struc tures of capitalism - as if one was totally unconnected to the other. This is a profoundly un-marxist, indeed anti-marxist, analysis to have. Historical materialism is about under- standing and explaining the world in terms of the organisation of society around the mode of production. Capitalism and its structures are all- encompassing. Male violence against women is an expression of the institutionalised power relationship between men and women that ex- ists in modem capitalist societies, and existed in different precise forms in pre-capitalist cluss societies. It is thus an intrinsic part of the struc- tures of capitalism, not outside them. This, after all, is at the centre of the debate with radical feminists.

These errors of theory have led the SWP to play a very destructive role in the women's movement where they argue consistently and forcefully against the self organisation of

women in any shape or form. Those who sup port autonomy are denounced as separatists and

self organisation is counterposed to the class struggle. In fact autonomy is not the same a

separatism. Autonomy allows those who ex- penience a particular oppression to discuss out

together their demands which can then he put to

a specific organisation, the wider movement, or

the rest of society. This process politically

strengthens the oppressed, increasing their con-

fidence and radicalisation and can only

strengthen the working class. The example of

the self organisation of the women of the mini-

ng communities during the great strike of 1984-

5 proves the power of autonomy.

Women's Voice

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Women's self-organisation has become a powerful factor in major struggles

Horever, the SWP's theories proved no match for feminism. The groups acted as the wrong sort of channel - of feminist ideas into the SWP and of women out of the Party. Women's Voice was closed down by the 1981 SWP National Conference on the hasis that it offended against Leninist noms and had failed to recruil effec- tively. Black Voice, an autonomous black or- ganisation was closed down at the same time.

Anti-lesblanism

Another strand that runs through SWP think- ing is a dismissal of issues of sexuality as neither political nor important, this includes a distinct anti-lesbianism. Despite a cursory attempt to place the oppression of lesbians and gay men in a materialist framework as: 'aby-product of the oppression of women, for gays and lesbians hreak the role stereotyping of men and women which is imposed by capitalist society", Tony Cliff and his co-thinkers" views on the subject range in reality from the patronisingly liberal to the downright reactionary, That sexuality is political is explicitly and contradictorily rejected. Some of the most insightful, original and fundamental analyses of the women's movement on the social construction of gender and sexuality and the links between the two, do not even get a mention, let alone a discussion.

This ties up with the absence of any materialist

or historical analysis of the family, at the very -entre of the oppression of women. Instead there is just a sociological description of the fact that the family is not very nice.

Lesbian feminists, along with black feminists, are blamed for the disintegration of the British women's movement. The 1975 Na- tional Women's Conference decision to add to

the original four demands of the women's

movement: an end to all discrimination against

lesbians and a woman's right to define her own

«trugeles and the women get liberated.

sexuality", is described by Mr Cliff as un indica

Rebecca Flemming

tion of: "how the Women's Movement dis-

tanced itself from the working class'!" He ap-

pears to think thar lesbians are neither women

nor working class. Meanwhile Norah Carlin fol-

• 'The original four demands of the Women's Libera-

lows the time honoured path, established by

tion Movement were:

• Equal pay now:

Betty Frieden et al, who faced with accusations

of rampant lesbianism' within the ranks, giving

the movement a "bad name", deny the existence

• Free 24 hour nurseries.

SOCIALIST OUTLOOK no 14 April 1989

lohn Harrin/FI

Unfortunately, however reasonably these points are made, constructive dialogue with members of the SWP remains very difficult. They come to women only meetings to argue that the meeting should not take place; a slang- ing match is usually the only result.

This was not always so. In 1974 the SWP launched an autonomous women's organisation with its own joumal -Women's Voice. The ob ject was to recruit women from the feminist movement to the SWP. A wide range of women

got involved in Women's Voice groups which

provided a valuable forum for discussion and did much good work on women's issues.

Page 22

is. go

ofleshians ratherthan deny the 'bad name'. Car- lin says in Women and the Struggle for Socialism: Most feminists are not in the least like the lesbian separatists pictured by the media." She genemusly adds: "Most leshians are not like that either, since being attracted to otber women and wanting to live together does not necessarily mean lesbians have to be extreme feminists in their political opinions". Lesbians need neither patronising nor euphemisms.

It all seems so easy!

Perhaps the inadequacies, inconsistencies and unreality of the SWP's line on women's op- pression and liberation is best summed up in a

passage that appearstwice in Tony Cliff's book:

"The contemporary Women's Liberation Movements ... have focussed consistently on areas where men and women are at odds- rape. haltered women, wages for housework - while ignoring or playing down the important strug- gles in which women are likely to win the sup- port of men: strikes, opposition to welfare cuts, equal pay, unionisation, abortion'.

Where has he been over the last twenty years? How on earth can he accuse the

Women's Liberation Movement of ignoring the issue of abortion? How can he, as a socialist, not understand that rape and violence against women are some of the manifestations of the up- pression of women, the inequalities of power,

in contemporary society? it is essential that feminists and socialists take up such issues for it was precisely by doing this that the Women's Liberation Movement involved millions of

women who found it painfully relevant to their

daily lives. How does he explain that, with u few

honourable exceptions, men have historically

opposed equal pay and fought to exclude

women from trade unions? But it seems it is all

very simple if you just believe that the class

nonn ane very simple if you just believe that the class

+ Equal education and job oppurtunitics: • Free contraception and abortion on demand:

DEPT

Phito Gordon Refle

Toyota production line: a similar pattern of exploitation world-wide

oitation world-wide

Car

Wars

Fighting for a

place in the

'Big Six'

BARRY HEATH looks at the cut-throat competition - and unlikely alliances - between car industry giants as they face the battle for survival in the final years of the century.

By 1990 the car industry worldwide could face an excess production capacity of 20% - equivalent to at least nine mil- lion cars, vans and lorries per year for which there will be no market. That is the grim picture painted in a New Year's message for 1989 by Harold Poling, Fords' chief operating officer (USA).

Such a huge level of overproduction must mean an increase in cut- throat competition and even more drastic rationalisation on the part of the huge transnational motor companies as they fight for their share of a decreasing market. The Financial Times in its review of the motor in- dustry commented: "There will be manufacturers today that will not be able to survive to the end of the century - if that long - in their present size and structure.'

The talk in the car industry itself is of a 'Big Six' by the year 2000. This refers to the development of the 'Big Six' in Britain in the 1930s, following the elimination of over 150 British car firms during the 1920s. Thistime the talk is of six worldwide transnationals - not six British firms.

The stock markets" fear of vehicle overproduction arises from two factors. On the one hand the brokers expect consumer demand to level off or fall after four buoyant years, not least hecause of the problems of the US cconomy and the implications of the intematinnal debt crisis. In Britain, the president of the Motor Agents Association reckons there will he a 200,000 drop in car sales this year due to higher interest rates.

On the other hand, the transnationals have planned to increase their production as part of their aggressive competition. In France, forexample, Jacques Calvet of Peugeot-Citroen has stated he expects demand for cars to decline, but he still intends to increase car production in Peugeot- Citroen plants in France, Britain and Spain to 2,5 million a year by 1992 to grab European market leadership from Volkswagen and Fiat. In Spain, General Motors have already put their works on a three shift a day pat- tem ready for 1992. If other European car firms followed suit there would snon he huge overcapacity.

US market to be worst hit

According in Haroid Poling, the worst hit domestic market will be that of the LISA, which will have six million more cars and trucks than it can handle. Already the US market is fiercely competitive, with 27 car firms offering over 40 brand names. In spite of the fall in value of the dol- lar, imports only fell by two percent last year - a fall that mainly hit European car firms and smaller Japanese firms (while the Japanese "big three actually increased their market share).

What is likely to happen in the USA is that General Motors will

proceed with a price war to regain its share of the domestic market which has slumped from over 50% in 1980 to 36% last year. They have spent S50 billion on new plant and equipment, and are now geared up and ready to go. At the same time Ford has announced record profits of $5.5 billion for 1987, which is mose than all the European and Japanese car firms put together. This is the result of drastic rationalisation including a 25% cut in the workforce. General Motors too have cut their workforce - by 40,000 - and declared profits of $4 billion for 1987 as well as record profits in their Western European operations.

There is a new factor in the US car market, however, and that is the Japanese cars assembled in the USA itself, expected to rise to two mil- lion a year by the carly 1990s. Toyota for example has a $1.1 billion com- plex in Kentucky, and about 300 Japanese component firms are also reck. oned to have followed this expansion. With consumer demand expected to stay steady if not decline, something will have to give.

Joint ventures

It costs about $500 million to design, develop and equip a gearbox factory. One mistake and profit margins tumble. One way of avoiding these hazards is for car firms to enter into joint ventures with each other - to use the same gearboxes or diesel engines, or the same components.

There are a bewildering number of these agreements taking place. Glossy adverts and media hype mask the fact that beneath the bonnet and the brand name many cars are virtually the same. It makes nonsense to say "Buy British' or "Buy German" because heaven only knows where the bits came from or where the car was designed. The joint ventures of course may give some indication of the future members of the global Big Six'.

As one would expect, the big three US car firms are the most predatory. Ford have close links with Mazda (Japan), with Kia (South Corca) and Lio Ho (Taiwan). It was expected that Mazda would become Ford's base in the Pacific rim, rather like Ford (Wester Europe) - having a certain independence, but ultimately answerable to Detroit. However the Japanese banks seem to have manocuvred against this development, only to throw up rumours of an even bigger merger between Ford, Mazda, and Japan's number two car firm, Nissan. The Japanese banks have ap parently been trying for a long time to cut Japan's nine car firms down to three viable ones.

Meanwhile Gencral Motors has large stakes in Isuza (Japan) and Daewoo (South Korea). At the same time they have joint ventures with

SOCIALIST OUTLOOK no 14 April 1989

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Japan's numher one car fim, Toyota in Xiummi (USA) and in Australian plants, Chrysler have close links with Mitsubishi (Japan), which in tum is linked to Hyundai (South Korea and Canada) and China Motor (Taiwan).

In Wester Europe, 1o0, there are numerous joint ventures. Fiat, for example, shares engine research and development with Peugeot-Citroen. diesel engine production with Renault, and exocutive car production with Saab. Meanwhile Volkswagen supplies gearboxes to Austin Rover, en- gines to Volvo, and owns Seat (Spain) and Audi (West Germany). They also have joint production of Hilux pickups with Toyota, overseas cooperation and Santana production with Nissan, and joint production of cars with Ford in Brazil and Argentina. This is just a sample of the com- plex web of alliances among tran mational car fans.

The Global Car

One reason for the dominance of the transnationals is the most ob- vious development in car design over the last period: the "global car. All new cars look and perfon more or less the same throughout the world. Because of the oil crisis the large American cars of the 1950s and 1960s had to be scaled down in the 1970s to the 'compacts". The small cheap Italian cars, made for narrow streets and nar- tow wallets, became popular in other countries, were upgraded and copied.

The Japanese firms assessed the world market and designed a range of cars to be universally popular. Smaller firms went out of buriness; transnationals took over.com- peting in each other's national markets.

They swapped their designs and component part manufacturers from country to country.

The 'global car' is made up of parts from all over the world. General Motors for example has a car which was designed at Opel in West Germany, is assembled at Daewoo (S.

-d at Darwoo IS.

Korca) and is sold in the USA as the Pontiac Le Mans.

The notion of the 'global car' has brought about three main brands of car production simed at three sections of the

market: the cheap end; the middle range; the market: the cheap en executive class and specialist models.

Transnationals have to assess the markets for cach on a world scale, and therefore where to locate their production and what joint ventures to enter into. The cheap end of the market brings the highest levels of demand, especially in the poorer countries, but is the least profitable: therefore the transnationals aim to assemble their cheaper models in areas where labour costs are low. and seck joint ventures wherever possible.

Thus for example the Japanese car firms are going up market and leaving the cheaper end Austin Rover cars wit to their South Korean or Taiwanese sub- ridiaries; Volkswagen is moving Polo production to Seat (Spain), where lahour costs are half those at Wolfsburg; and Ford (USA) has links with Mazda in Mexien.

Sonie car firms have direct agreements with nation states to produce cheap small cars. India, for example is building car plants with help from suzuki. Frat nas a S1 billion deal with the Polish government to moder- nise FSO plants, based on production of the Fiat Duna (originally designed for Fiat's Brazilian plant). Poland's PSO plants also have ex- clusive international rights to produce the small Polski Fiat 126: the idea here is to scoop the market for cheap cars un the stalinist xtatex of Baster Europe - and also to export them to Western Europe. At the same time however Renault have a deal with the Romanian goverment, whose Dacia car is based on the Renault 12. Volkswagen have sold East Germany's Wautburg a Polo engine track to power their new model, and also expect to export engines back to VW in West Germany. China, too. has now entered the fray, worried by imports from Japan. They plan three major factories linked with VW and Chrysler, and hope to become a major

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exporter of cars and trucks by the year 2000.

Ar the top end of the market where more profits are to be made, there has been a scramble for the West German brand names. The Japanese have faced an image problem when competing in this sector, and small companics have been taken over. Chrysler have taken over Maserati and Lamborghini of Italy; Ford now owns Aston Martin; General Motors owns Lotus. It is likely that the bigger names will go next - like Porsche. Jaguar and BMW.

The impact of 1992

World economic geography is changing due to crises in the USA and in the USSR, together with the developments around 1992 and the single market in Western Europe. There seems to be a growing regionalisation as Japan, the USA and the European Community (EC) gear up for a probable trade war. Each major country secks to maintain and increase political and economic power over its own area - Japan over the Pacific rim; the USA over the Americas: the EC over the European Free Trade Area (EFTA) states and Easter Europe. Cicarly 1992 will make a major difference to the balance of forces as an embryo European state emerges - particularly if this sets up a 'Fortress Europe' of trade barriers, as some

Volkswagen gearboxes anaiysts believe.

The former boss of ICT claims that two thirds of West European manufacturing industry will be restructured and/or disappear as a result of the 1992 changes. The transnational car firms will obviously be in- volved in this shake-up, particularly since the six main EC-based car firms are only relatively medium sized on a world scale, and have in some cases had the benefit of state protection.

The Japanese car firms aim to get into the EC on the ground floor, with either new plants of their own based inside the EC, or with links with EC motor firms. Nissan has led the way with its plant in Sunderland. It also has links with Ford, and plans a joint (Sigma) engine to power Fies- ta and Micra cars: in Barcelona a plant is already producing Ford/Nisean 4 WD utility vehicles. Toyota also plans an assembly plant in Britain cost- ing £610 million, incloding up to £125 million grant from the British government. With Honda already having established links with Austin- Rover, the Thatcher government has been accused of playing a comprador role for the Japanese because Britain's own manufacturing base is too weak to withstand 1992.

SOCIALIST OUTLOOK no 14 April 1989

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There are a number of links between Japanese and EC car firms. Toyota's Hilux pickups are produced at the VW plant in Hanover, while Toyota is also interested in Audi ax a base for its upmarket cars. It has a

27% stake in Salvadez Caetano (Portugal) which assembles Toyota utility vehicles. Mitsubishi is linked with Daimler-Benz and with MDF (Por- tugal). The larger component firms are also becoming linked, forexample Bosch with Akebono brakes, Lucas with Yuasa batteries. These are just

ax with Yuasa battene• These are junt a few of the interconnections.

Militancy is not enough: a political leadership and a workers plan are needed to wrest control from management

Immediate solidarity with workers defending their jobs is essential; regional, national and international networks need to be built up on this basis. At the same time, militancy is not enough - as the miners' strike showed. Workers in each corporation must fight to open the books of the industry, to expose the financial and production links between their sup posedly "rival employers, their manipulation of pricing and tariff policies, their manoeuvres to maximise government grants while mini- mising tax bills; and show the knock-on effect of every productivity con- cession from one firm to others throughout the industry. They must draw up tactics to combat 'quality circles" and every device used by employers to entice collaborationist union leaders into helping to increase levels of exploitation. They should also look at what they are producing, and propose changes based on human need, not profits. In the car industry. all sorts of "green" issues like pollution, public transport, road building. the needs of the third world" would need to be looked at.

These alternative plans are important in order to attack the capitalist system and win more general support. The same could be said about the miners' strike, which underlined the need for a plan for energy and preser- vation of the earth's resources. These plans could make practical sense of the old slogan "nationalisation under workers" control". What would be the role of a car industry under socialism? We need to plan and ex- plain.

The workers' response

Carworkers need their own intemational links to defend themselves against the transnational car firms. Already massive cuthacks have been made in established motor industries throughout the world. The devasta- tion of British manufacturing industry is well known, but in the USA. Ford have cut their workforce by 25%, and General Motors by 40,000. The Financial Times recently wrote of Peugeot Citroen's 'Draconian restructuring of its workforce, with Renault doing the same to keep pace.

These measures have gone ahead, as far as one can see, with very lit- tle resistance, certainly with no international working class solidarity. The restructuring of industry in the EC after 1992 is bound to mean more at- tacks on jobs, wages and working conditions. Workers need to build a whole series of links and networks if they are to defend themselves. Al the moment the leadership of the European labourmovement seems either locked into making the EC work for capitalism (following the line put by Jacques Delors to last year's TUC Congress) or merely content to sign redundancy forms and single union deals. The links have to be built at factory and rank and file level, where workers are beginning to realise that there is no purely national solution to their problems.

The British miners' strike is very instructive in this regard. Solidarity with the miners meant solidarity with the front line representatives of the working class in struggle, I recall a group of ex-carworkers handing in a collection. They said "We needed a Scargill. We signed the redundancy papers, and now our kids have got no jobs'. Since then, strikers at Wap- ping and Dover have understood the meaning of the miners" strike. Wherever miners went abroad to speak, expecially in Europe, they received a tremendous welcome. This was not charity or plain hospitality. but class solidarity - their struggle was our struggle, interationally.

The fact is however that there had been no preparation of the British working class for the struggle against a quite conscious class enemy. We are now faced with the restructuring of industry on a European-wide scale, and then on an international scale. We are up against an enemy that thinks nothing of phoning or Faxing around the world hefore lunch. The need for preparation and learning lessons, from the past has never been greater.

A new generation

A whole new generation of carworkers is entering struggle in the newly-established car plants. It is no accident that the mass strikes for union recognition and better conditions last year in South Korea, Brazil and now Spain, are precisely in those areas where car assembly plants have been located for cheap labour. Wage increases in double figures were gained in South Korea - Hyundai moved a good deal of its produc- tion to Canada for a quieter life.

The car firms always look to make profits out of paying low wages and speeding up production. The Japanese car firms in their green field sites and "just in time" production methods are notorious in this respect, and the envy of other employer. Conflict inevitably results, since the production methods are inhuman. There are numerous stories now in car towns of Britain about deaths on the track, breakdowns from stress, new workers leaving after two or three days and so on. The reality needs to be exposed publicly.

In the coming war for markets among the transnational car firms, a systematic link between the established, unionised carworkers and the new generation of their co-workers in new and re-located plants could yet he a posverful force. The task is to build a marxist leadership in the car industry unions that can open up such a development.

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