More Car Stuff

On one of my favorite subjects, I see in a report in the USA Today Business section on Friday that now that gas prices are down, Americans have quit buying compact and economic cars (down 63% from when gas prices peaked) and are now looking at larger cars and I am guessing trucks. If nothing else the American consumer is amazingly stupid. Again, my opinion. I am not saying all consumers need small cars or should not drive trucks. But how often I see one person in a vehicle, I wonder how big, how fast or how uneconomical they need to be. In terms of national security, the less foreign oil we use the better. Maybe there is a market for upscale smaller cars.

Cars of quality--I rent many cars as I travel and some are underpowered, some are tinny, some are solid and some have neat little extras like really, really nice seats with adjustable bolsters and automatic headlights. Some are old rear-wheel drive dinosaurs (used when driving around three or more people and you don't want an SUV.) It is just hard for the American psyche, where cars are part of identity and not only tools. There are many good reasons for higher corporate fuel economy standards. I can remember the first time CAFE standards and emission standards were introduced, cars really became large, underpowered objects. In the last ten years more powerful cars with better controls and comfort were the norm. Try driving a '63 Bug to see how far amenities have come with the same gas mileage. Better handling, more quiet, more power and much safer. and in some cases, more fun. I think, regardless of what auto makers say, that if the CAFE standards were raised again, they would rise to the occasion and make better cars. I know deisel truck drivers feel that soot traps and emission standards will put them out of business. Probably not, the market will adapt and the roads and the air will be cleaner.

As an aside, I am always amazed at how many big SUVs and pick-up trucks proudly have "Support Our Troops" stickers on them, or America Proud (aka love it or leave it) on them. So let me get this straight--you want to own a vehicle that burns more fuel, keeps us on foreign oil, embroiled in conflicts to keep the pipelines open to America and then want to Support Our Troops?! Doesn't this begin to seem incongruous?

On another note, GMAC is now being recognized as a financial institution by TARP and will be eligible for bail out funds if they broaden their business to include banking. You know they will and GM will have less control over it. They have already sold 51% to Cerberus (the holding firm that owns most of Chrysler.)Time to pack.

rojo

Very Sad

I was semi-joking about the American car industry and how there might only be one standing yesterday, but this came out today. I was bummed years ago when reading the history of the American auto industry that Studebaker, Packard, Auburn and Duesenberg disappeared. You, see, I love cars and some of those were classics. Engineering, design and performance classics that could not compete with mass production at Ford. I really felt sorry for Kaiser when he proudly stated Kaiser-Willys (pre-American Motors) had millions for R&D when GM had billions. You make one mistake when that underfunded and bye-bye company. Haven't seen many Kaiser-Willys or Kaiser Nashes lately, or heard "Hey Javelin" either. Yet they were unique and had a place in history. They were placed out of business because while their products were good, they were underfunded for business development and R&D.

So here we have a situation where Chrysler is going down. Daimler has given them a cash value of zero. If GM picks them up, that is basically a life preserver. They had the best 4-wheel drive technology (which is why they bought Jeep). They still have market niche with their hemi engines (even though in the world of high gas prices, it seems out of step, says the hybrid owner). A moment of silence for a company that really had "hot" cars during the 60s and 70s and never really recovered in the emissions era. They tried to downsize and still have fun cars--the Omni GLH by Carrol Shelby comes to mind, but the product line at that time Cordova, Aspen/Volare followed by the Kcar shows what happened. The minivan genre was their idea and is so copied that they deserve a cut of the profit and theirs is still the standard of the American industry. Their marriage with Daimler never worked and they lost, in a purge, the designers who brought you the Prowler and the small retro wagon whose name escapes me now. Ah yes, the PT Cruiser. Their brand niche was changed and identity lost and not quite recovered. I mean, who can point out an Aspen, Sebring or Pacifica in traffic? The Crossfire, yes, but the others--computer sez no.

On the other hand, VW is doing well. Puegot and Renault had their credit ratings cut. As an aside, in one of the biggest blunders in auto history, Ford turned down owning VW as reparations for WWII because "no one would buy a car like that." and then they had to rush out the Falcon to compete.

rojo