Greg Mankiw is thinking of buying another car. He writes
[...] I got a copy of the Consumer Reports auto issue (April 2009).Is there a message in this? Following the Consumers Union report why is anyone surprised that Chrysler and GM are going out of business? Bankruptcy for these two tells us that the market is working. These car manufacturers aren't producing product worth buying and the market punishes this with bankruptcy. Now if only the government would stay out of things.
Page 15 was particularly enlightening. There, in their "Automakers report cards," Consumers Union summarized their findings for each of fifteen major car companies.
Dead last was Chrysler. CU recommended zero percent of the Chrysler vehicles they tested. That's right--zero. Second to last was General Motors. CU recommended 17 percent of GM models. By contrast, most other companies had half or more of their models get the thumbs up. Honda was the top ranked brand; CU recommended 95 percent of its models.