For The Record: US Auto Industry Doesn’t Get It and Is Doomed to Failure
For the record, I think a GM-Ford, or a GM-Chrysler merger, or any combination thereof is a bad idea for the American auto industry. Instead of looking for scale, the big auto companies should sell off their constituent parts, or rather shed the unprofitable ones and focus on the future. Getting bigger isn’t going to help, it is only going to stave off the inevitable. The inevitable is the future. That future is efficient, quality built cars with slimmer profit margins than the landlubbing, gas-hoggers they’ve been selling for years. Retool the plants and sell cars like they do in Europe and in parts of Asia, cars that are smaller and more efficient. It’s utter rubbish to claim they don’t have the wherewithal to do this. They’ve been doing it for years in Europe. Get leaner, more agile, not bigger. (The problem is, the bigger they are, the more likely the government is to step in when they fail–as they are ‘too big to fail.)
It’s time to rethink the whole American auto-industry instead of looking for scale. But the search for scale (and market share) is just more proof that the auto execs have learned nothing. Given ten years I could turn Ford around into a powerhouse–even knowing what little I do of the industry. But that’s what the industry needs: new thinking and new blood. Until then? “Same-same,” as they say here in Thailand.
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