Red Pill: October 2008

I have been spending quit a bit of time these last few days watching the GM, Ford and Chrysler move ever closer to extinction. Born and raised in Detroit I have seen first hand the ups and downs of the auto industry, the greed and the lack of vision. It's no surprise to me that the industry is hanging on by a thread, and Detroit once again is on the verge of collapse.

The thing I keep asking myself is why are all three are still making bad decisions in a time of crisis? Moving like dying dinosaurs, caught in some sort of quicksand, slowly sinking. You may ask what about the Chevy Volt? Pretty much the only positive announcement at GM in the last year. They are betting everything on this one car, advertising it like it's available right now, unfortunately we still have another year and a half at least until a select few can get their hands on one. While they are missing the boat on Hybrid technology today, they have only sold 5000 hybrid vehicles at GM this year so far!! In comparison Toyota has sold over a million Priuses!

This is what I would do if I was the greedy old white guy at the helm at one or all of the Big Three...

- First off, take the same approach the the tech industry did after the bubble burst in early 2000. Re-think, innovate, and scoop up smaller companies that are making real advancments in EV, Air cars, and other alternative vehicles. Companies like Aptera, Tesla Motors, hell I would acquire Moller just to say I have a flying car! Think of it as American Auto industry 2.0.

- If I was at GM I would bring a standard gasoline hybrid version of the Volt to production today while we wait for the full electric version to come to market. Take on the Prius right now, steal their sales, and thunder while getting people use to the idea of GM selling green cars..

- Each of the big three need to create completely new brand, kind of like Toyota did with Scion except with a green focus. The reason nobody is buying hybrids from the big three is because they will never associate and of the Big 3 brands with fuel efficiency and therefor won't even look in that direction. Right now if your in the market for efficiency you go directly to Toyota because of the Prius, once you realize there's a waiting list you will most likely settle for a Camary.

This is just one idea, a sliver of radical thinking that needs to happen now. One company talking about an EV car that isn't available yet just won't cut it this time. Are you listening Detroit? Take real risks, move fast, and don't look back!