How to buy American and save money; Careful cost analysis makes a difference in the long run.(Opinion)

Byline: Donald A. Manzullo

Recent news reports have painted a gloomy picture for domestic carmakers. Ford Motor Co. and General Motors face serious credit and profitability issues and foreign incursions into their domestic markets. While America's appetite for new cars remains constant, sales of those produced by U.S. manufacturers continue to decline.

Government alone cannot solve the problem.

Two major factors driving the downturn for U.S. automakers are rising health care costs and employee pension benefits. In 2004, GM spent more per car on employee pension and health care costs ($5 billion) than for the steel that makes the car frame, body and engine.

In addition, recent productivity evaluations show that foreign competitors are …