"History is a wonderful thing, if only it was true"
-Tolstoy

Monday, July 25, 2005

Off the wall piece about "Going Green"

The Green Machine That Could Be Detroit - New York Times:

Note that I've had prior rants on hybrids.
Great marketing
Not a revolution

"O.K., but aren't there technological barriers to building a clean car company? Could a major automaker retool itself this way culturally as well as physically? Sure it can. It would be costly, but there is precedent. The entire American auto industry retooled itself to emphasize quality, and it now makes some of the most dependable cars in the world. Maybe the best way for an automaker to manage this latest transition would be to build a new brand, the way G.M. once did with Saturn. In this new case, however, the brand would consume the parent company."

I don't buy it
Cost money - yeah, a lot
Where does the capital come from ?
Pensions? Health Care? Banks? Investors?
Doubt if it comes from cashflow - that's going to the UAW.
And don't think you aren't going to be laying off workers (at 95% pay) to do the transition.

I think the model is already being executed ... by Toyota
Build and subsidise the Prius ... get that "green halo" while moving into heavy duty pick-em-up trucks.

I'm not against the green marketing approach, Maximum Bob (Lutz) has recoginzed it as brilliant. But I don't see the argument to turn the company upside down overnight.

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