Wednesday, November 19, 2008

No Money Honey - US Car Industries Left to Die?

The Future Versus the Past. On the top we have
Shai Agassi's electric car. To the bottom is GM's limousine Hummer.

Looks like the car industry is not getting a $25 billion US government bailout despite marathon pleas from CEOs of General Motors, Ford and Chrysler. As much as I don't like the idea of unemployed workers, seems to me US car companies have been wasteful and producing substandard cars for decades now. Sure low tariffs on foreign cars didn't help, but bad management/planning by the major companies have everything to do with it. Their shortsightedness will make us all suffer in the long run.

Anything can be cured if you inject new blood and seriously restructure. There are many ways to approach this but right off the bat, CEOs just need to sacrifice like the rest of us. They do not get to keep their lifestyles, perks and bonuses when many hardworking Americans are without homes. We need younger people with innovation and vision to buy up the dying car companies and re-invent them if US ever wants a shot at making that industry lucrative. I'm thinking maybe someone like Shai Agassi, with his ideas on producing affordable electric cars and making money from energy development to fuel the cars, could represent the future of the auto industry (see illustration above). Thoughts?

Made correction to the bail out price tag.

1 comment:

Mochi Mochi said...

oh and speaking of those CEO's - off with their nasty old white heads! those fat-ass fat-cats each flew to washington in private jets! (as reported today). that's no way to tighten your belt, make your company solvent, or make your point to congress and the american people.

these guys need to be fired and have their salaries and golden parachutes distributed back into their ailing companies. which should in turn be run by their european counterparts... euro gm and euro ford are much better that the US version. they've got great cars like the Ka that sell in Brazil and the EU but never make it here - that's just dumb.