Gavorge

The right way to make money today…

January 25, 2006 · Leave a Comment

Prius

You really have to wonder what goes through the minds of certain big business decision makers now adays since, despite their bags and bags of money and influence, they can more often than not be the most bass ackwards (clever spelling!) individuals you have ever witnessed. Take the automobile industry for example. It’s no big secret that American car makers were bailed out of bankruptcy by the US government and heavily subsidized following the failure of large SUVs and full size (or larger) sedans to overcome the influence of compact performance oriented foreign cars. I can’t really fault the government for trying to save its auto industry but I can fault the brainiacs who dished out the billions in subsides without placing conditions on future manufacturing and design decisions.

See, US companies got a boat load of cash to continue producing but never really changed their business model or design goals. They’re still cranking out large cars. Through clever marketing and the coming of age of the baby boomers they managed to somewhat revitalize their image and increase the allure of large cars but in doing so they are trying to force consumers to want big cars. I’m no economics expert but isn’t it more efficient to produce a car that people want (more examples) rather than trying produce demand for a car you want to make? The obstacles facing high demand for big vehicles are only increasing. I saw an A&E biography the other day about a 2006 auto show that highlighted US companies unveiling all their new gas guzzlers and a fair number of foreign companies showcasing all new suspension systems that shift like bike tires around corners. So apparently the auto industry is hearing consumer demand for a $100 per tank fill up that can take a corner at 120mph in a torrential down pour. Seriously…these people have degrees in marketing and business and these are the designs that come up with.

All specifics aside, the truth of the matter is that people rarely get rich by solving a problem no one has, you get rich by providing a solution to a problem everyone has. No matter what you’re driving habits are or how precipitous your local climate is, everyone has to fill up their gas tank and pay through the teeth for it. If the auto industry wants to solve my problems they need to give me an affordable car that runs on alternative energy sources (and that easily integrates my ipod!). Otherwise we’ll all be looking at our triumphant mega SUVs as they sit motionless in our drive ways while we strap on our bicycle helmet for the ride to work.

Categories: Business

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