What is it that makes the auto industry think they are so special? They manufacture autos, and we certainly need autos. There has been a lot of debate regarding the type of autos produced by US manufacturers and if that's appropriate for the environment. But all of that debate gets shrugged off and excuses are made now that "bailout" is the buzzword and the auto industry has come sniffing around for their share.
Take just a moment to participate in some radical thinking. What if we don't bail out the auto industry? Jobs will be lost and major corporations may fold. But what if we accept that and look for some good to come from that situation? What if we consider the entire auto industry, including the consumers, to be a bunch of idiots who need to attend this school of hard knocks?
Cars made in the US aren't real popular anywhere but the US. Sure there are a few exceptions but the fact is that there is not a huge demand for the export of US autos. Oddly enough, foreign automakers operate US plants so that their vehicles can be sold in this country and aren't considered imports. But those vehicles aren't exported heavily either. So if the US auto industry gets cut back in a big way, it's not going to do serious damage to exports. Instead maybe the resources can be applied to something export worthy. Maybe those factories and workers make cars, maybe they make widgets. What's important is to have them making things people need, people everywhere. I'll save the trade deficit rant for another time but it just seems vital that we export as much as we import. Todays autos don't help us do that.
If we're going to make things for the US then let's use US resources to do it. The manufacture and assembly of cars in and for the US seems to require a lot of shuffling of resources. Things are required from Asia, Mexico, Canada. Those things get tweaked and then sent to Asia, Mexico and Canada. Eventually it all ends up as a car, ready to be financed and sold. The import/export game can be simplified if we simply make our our stuff at home. Eventually this makes the production of automobiles more efficient. That helps the environment as well as the corporate bottom line.
Many people have said that any bailout needs to come with some sort of requirement for the automakers to produce higher mileage vehicles or vehicles that run on alternative energy. For me, the best incentive to "go green" is the recession itself. If people can't get financing, and if automakers are wounded and forced to produce less, then people can't replace their SUV's every couple of years. They'll be forced to operate a vehicle until it's reached it's end of life. During the life of the vehicle there will be opportunity to sell parts. But I still believe that the energy required and environmental damage done in the creation of a new vehicle is likely to be far more than the energy required and damage done during the operation of the vehicle over its life. So people will have to take care of their things, act responsibly and operate efficiently.
All of this will prepare the consumer for their next vehicle purchase. When they've used up the last vehicle, they're going to shop with a list of requirements that is far different than today. Instead of warring about the number and location of cup holders, consumers will be worried about operating costs. Rather than shopping for the latest style, consumers will be looking for whatever costs the least to operate and maintain because the memory of their expensive SUV will be fresh in their minds. Automakers, now more likely to be small companies rather than the former mega-corporations, won't be designing based on style. Chip Foose will always have a market for his aftermarket goods, but the focus in automobiles for the mainstream won't be on style. Automakers will focus on producing something reliable and efficient.
This summer, when I was paying $4.30 per gallon to fuel my SUV that suck 17 MPG, I was forced to think about how I operated that vehicle. I will honestly tell you that I bitched and complained like everyone else. But I will be just as honest telling you that I hardly noticed when the price of gas fell below $2.00 per gallon. Yes, honestly. I was shocked to discover it. When prices started going up, I was consuming 13 gallons per week without giving it a though. Who knows how much environmental damage I was doing and, honestly, who the hell cares? I sure didn't. But when the price went up my budget forced me to think about how I and what I operate. My car gets better than 33 MPG, so it was logical to drive it whenever and wherever my SUV wasn't required. You know I'm not the smartest guy in the world, but this wasn't rocket science. If I wanted to feed my children then I had to find ways to spend less on gas.
So there is one reason that I have no interest i what the current group of idiots automakers has to offer. I need efficiency and my 1996 Ford offers that. Something made last week isn't going to be much more efficient. Worse yet, a new vehicle will require finance. That ups the operating cost a bunch.
It takes a real idiot to purchase a new vehicle right now. Because vehicles are designed, manufactured, purchased and disposed of based on style, a new car loses "value" the moment the dealer puts the keys in your hand. So the idiot agrees to vaporize money. And it's money that the idiot doesn't have, he had to borrow it. He'll pay for years for this car, including payment for the money that went "poof" the moment he took the car home. It just kills me when these same idiots complain about global warming. Quit buying the latest fad! This sort of purchase has contributed significantly to global warming as well as to the collapse of our economy. Instead you could drive what you've got, save the environment, save the economy, all while saving yourself some money.
If what you've got isn't meeting your needs, consider a used vehicle. The environmental damage to produce it has already been done so you'll be helping to make that damage worth while. You don't have to have any worry about it being reliable because you'll shop wisely. You'll have one or two mechanics check the vehicle and make any repairs necessary to make it safe, reliable and efficient. You can afford this because you aren't giving away the money you would have on a new vehicle. You can afford this because you spend less on the used vehicle. If you sell the vehicle you have that isn't meeting your needs and apply that money to the purchase of this "new" used vehicle, you'll own the new gem in no time. You'll then be able to afford repairs to this older vehicle because you won't have a payment.
Example: When we were paying for our 1996 Ford (which we purchased used), we making car payments of about $240 per month. But that only paid for the car and for the money we borrowed to get the car. We still had to pay for any necessary repairs that the warranty didn't cover, and the warranty was only available during the first three years when the car was "new" and didn't need many repairs. And we had to pay operating costs: repairs for things that wear out like tires, oil, filters, timing belts, headlights, etc. Now that the car is paid for, I still have to pay for those things. Because the car is older it needs more work. But the money I've spent on operating costs, including a few major repairs, has come to far less than $240 per month. Way freakin less. I'll consider replacement when those costs finally exceed what I would pay on a car payment. Until then I would be an idiot to buy something new.
Another example: I felt the need for an SUV. I'll spare you the reasons but it was, and is, justified as a second vehicle (and work vehicle). A purchase of something new would have required at least $300 per month from me for at least 4 years, perhaps as many as 7 years. I wouldn't have had to pay for any worn out parts for the first couple of years, but then nothing should have worn out. So I would have had operating costs in addition to the $300 per month. So yes, I looked at new vehicles. I wanted one so bad! In the end I didn't give in to emotion, logic ruled. A co-worker was selling an SUV that I could purchase for less than $150 per month for only a couple of years. Yes, it had parts that were wearing out and would need replacement but I could afford that with what I would safe compared to a new purchase. The vehicle has plenty of life remaining and has been quite reliable. Amazingly it does exactly the same things a new SUV would have done for me. True, I've had to give up the latest style. Only an idiot would have accepted the price of style. A fashionable idiot.
When the time comes for me to shop for a replacement vehicle, I'll be looking for reliability and efficiency. The costs of financing and depreciation are always going to favor used vehicles. But that's what the current auto industry has missed. Whoever is making cars for the future will need to compete against that.
There was discussion about requiring these manufacturers to produce "green" vehicles. But if we shop based on efficiency, bang for the buck, and common sense then we don't have to force anyone to do anything. At that point the only vehicle that makes sense is the one that's "green". Duh!
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