Monday, December 8, 2008

What If They Built A Car… And No One Bought It?

Who has not heard about the heads of the big three US auto companies going to Washington begging for money to continue their unprofitable ways? Few I doubt, even if they have not paid a lot of attention to it. One common reaction to this and all the monies Washington is forking over is that it is making people’s heads swim with the astronomical numbers being tossed around. It is difficult at best to imagine these numbers while looking at your own pay checks.
The one thing that connects most people to the concept of bailing out these companies is jobs. The economic situation has made about everyone to think about their own job security, which in turn makes most sympathetic to the plight of the auto workers who, as we are told, are wondering if they will even have a job by Christmas.

Yet something tends to stick in our collective claws. Something is not right about this whole mess. We know this even if we cannot put our fingers on it. One aspect only a few are talking about is the idea of the government taking over, or at least making production and design decisions for these companies as a condition for the loans. Many are actually afraid to really address the idea of the Government running private companies, but more and more are starting to question if it is a good idea to have the Government mandate what we will be driving. Picking out the car we are seen in every day is something most American’s take a lot of pride in. For most, it is something we put a lot of effort in as we peruse the ads and lots for the car that suits us best according to what we can afford.

Tastes in cars still vary considerably as they always have. Some still love the power and agility they fell in love with as they slipped behind the wheel of a foreign sports car. Mustang, Charger, Corvette, Trans Am, Camero, AMX, Mopar, hemi, Hurst…, these names and terms still excite many who thrilled at the loud rumble of the huge engines and the adrenaline rush they got as they were pressed back into their seats when the wheels started spinning and you flew out of the intersection like a dragster.

Still others loved the feel of the large comfortable vehicles. They felt safe surrounded by all the room such cars as the LTD, Impala, or even the upscale Lincolns and Caddy’s offered. As the SUV frenzy took over people fell in love with the large, roomy and powerful vehicles. They got a real sense of power and prestige as they shopped for larger and more powerful vehicles such as the Suburban, Excursion, or even a Hummer.

And of course American’s have always loved our pickup trucks. These great utility vehicles are the staple of the working man, and as they were designed with larger cabs and more luxurious interiors, more people chose them for everyday transportation.

Then the gas prices spiked and drivers were forced to make some serious compromises. I remember interviewing a gentleman by the name of Dave Blankly who was trying to convince himself he could be just as happy in the Saturn Vue he traded in his Explorer for. The excitement he usually felt when purchasing a new vehicle just wasn’t there, especially as he lamented the loss on his trade, the room and power he lost. While he did like the style of the smaller crossover, as well as the significant increase in gas mileage, he knew his argument that he could feel good about doing his part to save the environment was shallow at best. Dave is not really an environmentalist, but the entire PR surrounding global warming did influence him even as he questioned the whole concept.

I looked Dave up again to ask how he is getting along with his Saturn. He stated that he has gotten used to it but he also said he will never get rid of his classic Roadrunner he keeps in his garage even if he cannot fill the tank.

Dave and others spoke about the state of the auto companies and the proposed designs for new vehicles over coffee the other day. They do not like what they are seeing and hearing. Sure, there is a market for small hybrids, but these are not the mainstream buyers.

While most in the coffee shop nodded in agreement, a guy named Bob stated, “You know, we are Americans. We are a varied people and we all have different tastes. The American car market has always been unique, producing vehicles that others around the world wanted, even as they drove their little Bugs and Renaults around. Heck, the number one selling vehicle in China right now is a Buick! We don’t want what Washington wants us to have. We have the freedom to choose, and now they are taking away those choices by mandate! I won’t buy one. I will rebuild my truck a hundred times before I am forced into one of the new concept cars!”

Can the American auto industry survive if they do not produce vehicles the American consumer wants to drive?

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