The Perils of a Bad Strategy in the Global Automotive Industry is going to Hurt Jobs, OEM Manufactures, Suppliers and Their Customers But Why Change
More than 7 million Americans are 90 days or more behind on their auto loan payments, new data released by the Federal Reserve Bank of New York shows. The number of delinquent loans follows a trend of steady increases since 2011 and has risen to the highest level in the 19-year history of the bank's loan origination data.
Younger Americans are struggling with auto loans the most. The data reveals delinquencies on auto loans held by borrowers under 30 have crept up slowly over time, and the New York Fed says there's a "sharp worsening" in delinquencies that age group from 2014-2016...but what does this all mean?
This is Their Bad Short Sighted Greedy Strategy of Selling Fewer Vehicles With Higher Prices and Higher Profit Margins.
What people think they want due to all the advertising, psychological conditioning and corporate programming is more power, more speed, more style, more luxury, more gadgets, more technology, more connectivity, more self parking, more autopilot options, more flying cars and more self driving autonomous cars.....Totally WRONG because the OEM Companies are on a Bad Strategy mission to extract more and more money from their Fewer Customers and this Bad Strategy is going to lead to Disaster for all.....OEM's, Manufacturers, Suppliers and Customers.
All of this advanced technology won't be seriously available for a number of (5, 10, 15, 20) many years to come down the road.....but what about now? Who can afford to wait? No one smart!
A smart company can't afford to wait for business or profits.
A corporate automotive leader without a vision for his or her company's future always returns to his or her past and if their recent past performance isn't too great you end up with your performance left over from yesterday just like in the case of the Ford, GM and Chrysler and all of these companies are closing plants and shedding most all of their long term car brands due to low/slow sales and loosing millions/billions of dollars on these unprofitable models which leads to less jobs.
Many of these car models would have a much better chance of survival and being sustainable if their costs and prices were under control. Back in the Golden Years (1946 to 1974) of automotive manufacturing in America when most vehicles were priced between $2,000 and $4,000 the companies, the customers and the economy were all growing in the right direction.
Now lets fast forward to Right Now and what do we have in the automotive industry...........car prices have risen by well over a 1000%+ ($36,000 to over $100,000) but wages have been stagnant for the middle class and poor for well over 40+ years. The average consumers can't keep up with these out of control high costs/prices and low value.
In 1945 both Germany and Japan were in total ruins and now in today's global economy they are leading the world along with China in manufacturing and automotive EV 's while the UK has lost their automotive industry and the America's automotive industries is in serious decline. WHY?
Now keep in mind that in 2009 both GM and Chrysler would have gone bankrupt and disappeared without the $85 billion government bailout that kept them in business.
The Bad News now is that GM is closing plants/eliminating many car brands and Ford Motor Company is Eliminating & Killing Off Most All of it's Car Brands Because They Have Forgotten How to Make Innovative, Profitable and Affordable Cars Like They Used To Do When Henry Ford Lead The Company. So where is the leadership and the human intelligence? Well, it's not in Washington, it's not in Congress and it's not in Corporate Automotive America.
Ford said it won’t invest in new generations of sedans for the North American market, eventually reducing its car lineup to just the Mustang and an all-new Focus Active crossover coming next year. By 2020, almost 90 percent of its portfolio in the region will be pickups, SUV 's and commercial vehicles.
"We must think anew and act anew." In the Automotive World, what we need today is to think anew and act anew or we will keep falling more and more behind Japan, Germany, South Korea and China.
"Great Leaders are almost always great simplifiers, who can cut through argument, debate and doubt, to offer a solution everybody can understand." Colin Powell
This Post is all about thinking and doing things differently and developing a Universal Global Green Car/Truck that is simple, safe, practical, modular, versatile, multi-functional and affordable for the global masses instead of the status quo opposite of today's automotive high end vehicles. With this type of vehicle the American automotive industry has a better chance of bring back more automotive manufacturing jobs and dominating the global automotive industry as we once did.
MORE and MORE GLOBAL AUTOMOTIVE COMPANIES ARE CONSISTENTLY LOOSING MARKET SHARE AND SHEDDING LONG TERM MAJOR MODELS/BRANDS BUT WHY?
If you have an unlimited budget and throw enough money and resources at the design and build process, then you can come up with another super gadget car for the rich and well to do. We seem to consistently forget about the biggest and best automotive market to be in. WHY....? Because of bad habits, bad thinking, bad decisions and bad management.
Don't be fooled by looks alone and when evaluating any vehicle anywhere in the world, it's the total package/performance that counts as Jay Leno would say.
Just what the world needs today is another Pure Power, Pure Luxury, Pure Style, Pure Sport, Pure Performance Car........
Everyone seems to want to copy and compete with Elon Musk's Tesla models which have never made a profit.......... you can choose to develop and target this high end luxury market like the Tesla Model S/D/3/Roadster for well over $35,000 to $200,000 but this is not profitable or sustainable................. but the Henry Ford business model of the early 1900's was and still is very profitable and sustainable for anyone who can duplicate it today.
TODAY, YOU DON'T NEED ANOTHER COMPLICATED SELF DRIVING/AUTONOMOUS LUXURY, SUV OR SPORT CAR.....
INSTEAD; YOU NEED A SIMPLE, SAFE, PRACTICAL, USEFUL, MODULAR, CLEAN, EFFICIENT, AFFORDABLE LIGHT ELECTRIC CAR/TRUCK....and if you really want to find BALANCE then buy a vehicle like the Universal Light Green Car/Truck to put in you driveway or garage to off set your over priced and over complicated car or truck.
The first thing to do is get rid of the short sighted herd mentality of following the wrong automotive leaders and their emotional programming and make a global vehicle that has the potential and ability to sell tens of millions of vehicles like Henry Ford did in the early 1900's for the middle class and poor.
