The auto industry is contracting.
Viewed pessimistically, tens of thousands of manufacturing jobs are immediately at stake, while many more jobs at auto dealerships and parts suppliers are threatened. In turn, the effects of these job losses will ripple throughout the national and global economy.
Viewed optimistically, this crisis is an opportunity for the industry to change course - to think and act differently. Instead of waiting for the fed to impose conditions on any loans or guarantees, the industry ought to be looking for ways to demonstrate that an investment now will create a more flexible and durable sector.
In case the industry is in need of ideas, I'm happy to offer the following for consideration.
1. Embrace the inevitable increase in fleet fuel efficiency standards.
2. Drop the lawsuits against forward thinking states that have set standards that are higher than the national standards.
3. Re-manufacture much of the inventory of unsold autos and trucks to use natural gas or hybrid technology.
4. Shift as many production lines as possible to build natural gas or hybrid vehicles.
5. Fast track electric vehicle development and production.
6. Further diversify business to include domestic production of transit systems. The auto industry killed transit 60 years ago; now it should embrace transit as part of the business model.
Viewed pessimistically, tens of thousands of manufacturing jobs are immediately at stake, while many more jobs at auto dealerships and parts suppliers are threatened. In turn, the effects of these job losses will ripple throughout the national and global economy.
Viewed optimistically, this crisis is an opportunity for the industry to change course - to think and act differently. Instead of waiting for the fed to impose conditions on any loans or guarantees, the industry ought to be looking for ways to demonstrate that an investment now will create a more flexible and durable sector.
In case the industry is in need of ideas, I'm happy to offer the following for consideration.
1. Embrace the inevitable increase in fleet fuel efficiency standards.
2. Drop the lawsuits against forward thinking states that have set standards that are higher than the national standards.
3. Re-manufacture much of the inventory of unsold autos and trucks to use natural gas or hybrid technology.
4. Shift as many production lines as possible to build natural gas or hybrid vehicles.
5. Fast track electric vehicle development and production.
6. Further diversify business to include domestic production of transit systems. The auto industry killed transit 60 years ago; now it should embrace transit as part of the business model.
At the same time, we need demand-side action to support the market in the near term and encourage consumers to shift to natural gas and hybrid vehicles when they need to purchase a new vehicle. The list of actions includes tax credits that decline over time, development of natural gas and recharging infrastructure, and training and certification of natural gas, hybrid and electric vehicle mechanics, to name a few.
We also need to confront the new realities that suggest a very different looking automobile industry in the future:
1. We need to reduce the number of vehicle miles traveled, particularly by fossil fuel vehicles, for the sake of individual health and societal well-being. We ought to be walking more, using transit, and relying on community-based shared vehicles to get around our cities.
2. Our communities and neighborhoods need to be designed or redesigned to increase walkability and access to great transportation options.
Changing attitudes and habitat portend reduced demand for new vehicles per capita and the need to produce vehicles that are designed for different lifestyles and patterns of use. Let's use this opportunity to move the industry in appropriate new directions.
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