Is it over for U.S. automakers?

Inventories of new cars and trucks are at an all-time high for U.S. automakers, forcing them to offer huge incentives to push their vehicles. GM, for example, has been forced to offer total discounts worth more than $10,000 on its Chevy Suburban.

So, what’s going on?

American automakers blame sluggish job growth and high gas prices for their lackluster sales. While high gas prices are a justifiable excuse for lackluster SUV sales, is it a justifiable excuse for corporate incompetence?

After the ‘70s gas crunch, one might have pondered the future of the automobile and its reliance upon oil. Following the first Iraq war, one might have questioned the stability of the Middle East oil market.

Not automotive officials, claiming American consumers were only telling them that they wanted bigger SUVs, so that’s what they did.

In hindsight, was that a good move? Of course, it was the only profitable move for American carmakers – in the short term – but was it good for American corporations in the long term? More importantly, was it good for America?

When I worked for a CRM company, we spent considerable revenue moving from a Windows-based platform to a Web-based platform, just as we had done moving from a DOS-based platform to Windows. Did we do this because customers were telling us to?

NO. We did that because it was hard to deny that the Internet was the future. When would the future arrive? How long would it take for our new product line to become profitable? I’m not sure it has yet been profitable, to be honest, but it is the future, and without the Web model, the company would have no future.

In the future, the oil-based automotive economy will end – regardless of pollutions and Middle East relationships. Already we know that oil is contributing to SMOG and inflicting children with life-long ailments that might shorten the longevity of many in places such as Southern California. More importantly, excessive CO2 emissions are not only creating SMOG, but contributing to global warming.

While American automakers have accomplished little towards preparing Americans for the future, Toyota has perfected the hybrid car. Already hybrid cars can significantly reduce CO2 emissions, and – if every American drove a hybrid car – could end foreign-oil dependency.
What could be more American than providing freedom for Americans? Is short term profit a reasonable excuse to put American auto-workers, and America itself, in harm’s way?

The fact is American automakers have been un-American. Instead of providing leadership, they have put a noose around American auto-workers and America itself. Just because a company resides in America does not mean it acts American.

American automotive leadership must act now. They must take action that prepares America for the future. While Japan prepares to offer upwards of a million hybrid cars into the market in 2005, American automakers sell the fuel cell car. Yet, without any production facilities created, it will be decades before it is a reality.

Decades will be too late.

Hybrid cars already offer a much simpler transition to fuel cells today. For companies like Toyota the future is already here.

Yes, it will be sad if American auto-workers lose their jobs because of corporate incompetence, but America must prepare for the future, or it will become just a footnote in the history of the world.

So, if you are in the market for a car, think about the effect your purchase will have on the future of America. Think about the effect your purchase will have on the future of your children.
Hybrid cars offer consumers a revolutionary choice. If you believe in freedom, if you care about children, make sure you check out the hybrid car market. There are a lot more choices for 2005.

Go hybrid cars!