Tuesday, March 10, 2009

American Car Companies

This isn't about the bailout (I don't even know what that means). This is about American Car manufacturers plain getting whooped by their competitors, and for good reason too. You cannot continue to build inferior automobiles at higher costs and expect to survive. Take note of the next five cars you see dead on the roadside, all American. Take note of the leaders of hybrid and alternate fuel technology, Honda and Toyota. For years, Toyota's business model has been touted and revered as a revolutionary way of doing business. Now look at the other side.

Unions pushing labor costs through the roof, causing the Big Three to purchase their parts from cheap foreign countries, all while screaming, "Buy American". American? That's what got us here in the first place. America didn't invent the automobile, we merely perfected a method for building them. Satisfied with this, they (the Big Three) pumped out gas guzzlers, road hogs, and muscle cars for the better part of a century, basking in their fruits. No, wallowing in it. And like most egocentric Americans, they grew cocky and complacent. The Japanese and European automakers crept in and before you knew it they were reduced to pathetic bums asking for bread money. Innovate or die. It is apparent that Chrysler, Ford, and Chevy have chosen the latter.

Oh, and about that innovation, just look at what the newest domestic cars showcase: Blinking tail-lights (wowee, zowee), tape decks (yes, I said tape decks), and OnStar (I guess they were thinking cell phones would never take off). I suppose the OnStar will be useful for calling a tow-truck when your American-made hunker breaks down. These cars don't even have 6-digit odometers! Are they telling us something here? Do they expect their cars to fail? The answer is yes. Again leveraging on Americans' patriotism and stubbornness, they know people will come crawling back. Not me.

Nothing but Honda and Toyota in my driveway. Change the oil and put gas in it. I'll never buy anything else, and chances are, I'll never have to either.

2 comments:

  1. We are with you my brother of a different mother.

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  2. Geoff,

    You are right on with this one. Having spent a fair amount of time studying the Toyota way, it is not a surprise that they are now the #1 automaker in the world. Their system of relentlessly pursuing perfection while eliminating all waste is now being applied in numerous other industries as a way to deliver excellence.

    Personally, I love Honda's. I have had multiple Honda vehicles go well beyond 100k miles with little more than new brakes, tires, and oil.

    While American car manufacturer's have done a great deal to improve quality in the past decade, they have made poor decisions regarding the products they produced. There is no reason that the Prius should be the model of innovation in energy efficiency. We have known that energy efficiency was important for well over 3 decades, yet we have done little to solve the problem.

    Perhaps the only hope for any of the big 3 is to get serious about developing quality vehicles that truly deliver breakthrough technology in terms of fuel economy, or perhaps even type of fuel in general. Hydrogen, Solar, Natural Gas, Plug In Electric etc...

    Gas will be $10.00 per gallon at some point in the next few years. Who will figure out that problem now? The smart money would be on Honda and Toyota. Perhaps the big 3 will decide that it is time for them to lead once again.

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