A Different American Auto Industry

Change is finally coming to the American auto industry, but not in a way that Americans would have hoped for. I fear that General Motors may be the only one left standing when it is all over. Ford may survive as a brand but not as a company. The legend of Henry Ford will be hard to erase from the auto landscape. This is all speculation, of course, a short scenario if you will. My inspiration was this article at Edmunds’ website. My recent probing into the future of the American auto industry stems from a conversation I had with my neighbor yesterday. He was saying that his next car purchase might be a foreign model, a Toyota Tacoma. I haven’t known him for long, but he struck me as the type that would be loyal to domestic cars. When I told him that I was surprised that he would buy foreign his response was that he does want to be loyal but American cars have problems, they don’t last as long as Japanese cars. He has a Ford pickup from the 70’s that he keeps running just for the love of it. He said that Japanese engines last far longer than American engines. Among other things, American cars have real quality issues (at least in the mind of the consumer where the battlefield really resides). My neighbor also mentioned somebody he knows who works for GM. He said that this person he knows is so frustrated because the management that is above him is not willing to do anything to change the situation. It reminds me of what happened to the steel industry. Take a look at what the steel industry used to be and look at what it is today. That is what you are going to see happen to the auto industry. Cars will still be made here but on a much smaller scale and much differently.

Today, the President of the United States is going to meet with leaders of the Big Three. The agenda will focus on developing solutions for using alternative fuels. This seems misguided, they should be talking about other things. The Big Three are in no position to help. They can’t even help themselves. If the present situation persists they won't be making cars and will have no influence on alternative fuel use.

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