Tuesday, March 10, 2009

Big auto


As the pieces started falling out of our Lego-brick economy, my optimistic side took hope in the possibility that if a recession/depression reconstructed the automobile industry, it might all be worth it.

Western countries are trying to reduce green-house gas emissions and carbon footprints and--Look!--the industry that's the biggest culprit is reduced to tears. What a perfect time to shrink it and reshape it. Let it die and we'll start again fresh. The planet and neighbourhoods--the biggest victim of car culture--will rejoice.

Still, I am not immune to the trauma of lost jobs and a big whole in the continent's manufacturing sector. People need to work. I just don't think they should be working on fossil-fuel powered machines. So I was ambivalent about the U.S. and Canadian governments' plan for a bailout for the big three. How to save the jobs while retiring the product line?

My solution: Don't give the car companies a dime. But issue a request for proposals for green transportation and energy initiatives. The government can use the money for development grants to build non-fossil-fuel-powered vehicles, better wind mills, better solar panels--let's keep it as open-ended as possible. Anybody can make a bid.

There's no reason Ford, GM and Chrysler can't tender the best bids. It would certainly take new players a while to get things lined up to participate. The big three know vehicles. They know how to build things out of steel. But it's easiest for them to keep doing what they're doing.

The current government offers don't give them any incentive to make big changes. They'll improve fuel economy by a few percentage points, slap a battery on some models. But that's not good enough anymore. My idea forces them to totally rethink their business or there's no cash at all, not a cent.

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