Whither the Auto Industry?
observed by Torrey H. Brinkley
Much has changed in a short amount of time for the auto industry in the USA.
--A number of nameplates may disappear from the US scene (Saab, Saturn, Pontiac and Hummer are rumored to go away or be sold).
--Several major auto plants will shut down, even if for a temporary period.
--Even dozens of national newspapers are shutting down their presses because of lack of advertising revenue from auto-related businesses & customers.
--Hundreds of auto dealerships are slated to close soon.
--Thousands of car company & dealership employees will soon be out of work.
--Millions of car sales have already been lost this year, due to the bad economy, loss of jobs for many, and bank loans that disappeared for potential customers.
--Billions of dollars in equity have been lost when General Motors stock plummeted from a high of $42, not that long ago, to 75 cents on May 29, 2009.
--Years worth of good-will, long-term relationships, and product loyalties will evaporate if car & truck models are wiped out.
Much of the media criticism of the automobile industry has been muted recently, as daily reporting on the potential changes seems to boggle the mind. For too long, environmentally-protectionist critics have poked fun at large gas-guzzling trucks and SUVs marketed, bought & driven on our millions of miles of highways. But, these vehicles were needed to haul people, products and equipment, that have supported our active, busy lifestyles in this land. When jobs were lost, in important fields like construction & transportation, then it seemed cruel to criticize those who could no longer go to work in their pickup & delivery trucks.
How ironic that interest and technological advancement in the modern automobile has never been greater than right now. Chevrolet was thrilled to have a new Camaro ready for introduction this very month. Dodge was proud to have a new Challenger sporty car in its showrooms this past year. Ford has revised its Mustang sporty car again for 2010 (its 45th year of continous production). Each of the major US manufacturers had done a big upgrade in design & quality of the major pickup trucks (Ford F-150, Dodge Ram and Chevy Silverado), since they've been among the top 3 selling vehicles in the USA for the last 15 years.
Fewer media analysts have attacked the housing industry, since homes don't crowd our roadways, guzzle gasoline, or get involved in crippling accidents. Yet, houses use up valuable resources, take up much land space, and have been partially responsible for the major national financial crisis (very high demand for bigger & better homes fueled the frivolous lending practices that got us into the mortgage meltdown at all the banks & lending institutions). Way too many folk were dependent on the home-construction industry for employment to build way too many homes, condos, and apartment complexes. Those builders, the bankers who provided the loans, & realtors are now without gainful employment.
Some serious questions need to be addressed before things get better, and before our car-truck makers get back on their feet:
+Will Obama's Government Motors (the new GM), Fiat buying out Chrysler, and odd international firms picking up other assorted auto nameplates be the answer for what ails our transportation economy?
++if the Democratic-controlled Congress forks over billions of dollars to banks & financial institutions (who were poorly managed), why can't they force them to lend money to consumers who need to replace aging cars & trucks, instead of just sitting on that money?
+Will an emphasis on high speed rail service fix the people-moving operations in the USA, since nationally few people (percentage-wise) ride our trains, that never can go door-to-door anyway?
+Can blended fuels be good for our economy, when ethanol gas is destroying many internal combustion engine parts?
+Will the few models of complexly-engineered hybrid cars help the economy, when they cost 30% more than conventional cars?
+Do you wish to be the one to buy a new $5000 to $10,000 battery for a used Prius?
+If our environmentalists scream at tossing old TVs, computer parts and lead paint buckets into our landfills, what will they say about huge, tired-out, complex car batteries?
In the meantime,
....Has anyone convinced you to go buy an 8-foot long Smart car for $27,000?
....Can you see yourself driving an odd Nissan Cube, for $18,000 (check out some photos)?
....Why did you not sign up yet to buy the Ford Escape Hybrid for $35,000?
....Did you replace your old $12,000 used pickup with the new super-long $55,000 Toyota Tundra?
....Do you think the new $90,000 Audi R8 sports car is pretty at all?
....If you had the money, would you throw $400,000 at the frankly ugly Rolls Royce Corniche convertible?
Just checking to see if the modern automobile scene makes as much sense to you as some of Hollywood's far-fetched movie plots (cement trucks turning into monster Transformers that attack people, old museum artifacts that come alive, and Vatican secrets that have been conspiring against the world for 500 years)?
No comments:
Post a Comment