The New USA Automobile Manufacturing Presence

The New USA Automobile Manufacturing Presence

Change for Detroit is going to come.  Right now what is going on is only preparation for a massive change in ideology and product.  This change will be the New World Order or at least the new North American Order.  NWO and NAO will establish a new functional standard for cars and light trucks that will affect everyone.

Where Are The Real Changes

Fuel mileage and technology to achieve fuel mileage and safety are the key issues that will establish how New Detroit progresses into the future.  Federal Government financial assistance does not have much room for “fun” in their vision and it is OK to apply this same mind set to all Governments providing financial assistance around the World.

Governmental Mind Set

It is important to understand Governmental Mind Set or GMS.  There is a logic which applies to GMS and it works in the following manner.  Let’s say that you are driving on a street and the speed limit is 40 MPH.  Several scenarios are possible.

Travelling at 40 MPH you will not get a ticket, unless you are too fast for conditions.  Too fast for conditions would be determined by the Officer that issues a citation.  To overturn the citation you have to go to court.  Going to court gives the Judge the opportunity to assess your comments and the comments of the Officer.

If you are travelling at 44 MPH in a 40 zone then you could get a citation.  The Officer might be willing to give you a few MPH over the speed limit for possible speedometer error.  The Judge might give you a couple of miles over the speed limit for speedometer error.  You could go to court and plead your case that the Officer did not accurately track your car.

In the end what is going to happen when you plead your speeding case.  You might win but there is a strong probability that you could loose.  I did not mention your jurisdiction and whether or not the Officer and the Judge are cooperatively working together.  The point of this exercise in working with or fighting the Authorities is such that there is a very strong probability that you are going to be beaten by the system.  It is their system!  You might win but you will probably loose.

A Failed Vision

Government is going to re-make Detroit for better or worse.  Could Detroit get any worse?  Probably not, because management not keeping their eye on the product is what caused this situation to develop.  Government is going to re-make Detroit for the better since things can not get any worse.  For the sake of definition Chrysler and GM bankruptcy is viewed in this situation as being as bad as things can get.  Yes, GM and Chrysler could be disassembled and assets sold off so there was not Chrysler or GM at all.  If that were to happen then it represents only one step removed from the present position.

A New Vision

New Detroit must go forward.  Going back is not an option.  What are the key elements of going forward?  Key elements include 1) a modified Toyota dealer sales model, 2) high mileage vehicles in the future, and 3) Government motivation to the people to buy North American built automobiles.

Toyota model for dealerships puts into place a system wherein dealers make money because they sell a lot of cars.  This model works well in urban areas and aspects of the current GM, Ford and Chrysler dealership system works better to support rural areas.  A modified Toyota plan is optimal for Ford, GM and Chrysler in the future.

Higher mileage cars is a fact.  The Government has mandated EPA mileage numbers that cars and light trucks must meet.  There is substantial controversy about EPA mileage targets.  Alternatively, is the European model with higher taxes on fuel and the customer buys whatever they want with clear knowledge of fuel economy and fuel cost.  In Europe you can get a diesel VW or an AMG Mercedes.  One gets great mileage and the other stellar performance.  Choice is a function of cost and customer education.

Government motivation to the people to buy North American built automobiles seems likely.  The Government has invested Billions of Dollars and encouraging the people to buy North American built automobile will represent some sort of acknowledgement that this is a good decision which will keep workers employed in North American and generate cash flow into Ford, GM and Chrysler.  Ford has not received any Federal Bailout Monies but Ford will be included in the Buy North American Campaign.

Buy North American Program

The Buy North American Program will be very difficult to craft by Government.  Transplant manufacturers started coming to North American in the 1980’s and a significant 1994 paper  by Richard Florida and Martin Kenney details these formative yhears.  Congress passed the American Automobile Labeling Act in 1992 that provides information about the country of origin  for the percentage value of US and Canadian content, country of assembly and countries of origin for engine and transmission.  NHTSA prepared an interesting evaluation report about the Act in 2001.

Simply put the US Government will have a very difficutl time crafting a buy North American car campaign because the transplants are here.  It can be done and it will probably offend some manufacturers and governments.  With the Government taking a big stake in GM and Chrysler the Government could simply say Buy GM, Chrysler and Ford.

Another Step That Needs To Be Taken

Some countries make it very difficult or impossible for US manufacturers to sell in the country of origin of the vehicle.  There needs to be equality among countires.  North America is a major car market.  Everyone has been welcome to come here and build a plant.  It seesm totally short sighted ont he part of Government to let these companies in to the US and Canada and Mexico when North American manufacturers have been excluded.

A New Plan: Equality For Cars and Countries

For the New GM and New Chrysler the US also needs the New US Plan.  The Government is going to spend a great deal of money to recast GM especially.  The Government needs to be sure that the ultimate US Business Plan works and if this business model needs to put some pressure on some countires to let World Class Vehicles get into a particular country then so be it.  Also, the New US Business Plan needs to include a provision to assess real equality in the countires that need to be targeted. 

Global Plan For North American Built Automobiles

With the US Government taking a major role in the revitalization of GM then now is the time for the Government to assemble a Global Plan regarding North American Built Automobiles.  A viable Plan will ensure that world class cars are built and that these cars will be welcomed around the world.