For parallelism I suppose I should comment on things that have to do with the north eastern half of the United States. In this spirit it would be prudent of me to mention the current price war between the "pride of the yankees," Detroit's auto manufacturing giants.
It has been quite obvious to Americans that over the last few decades we have been losing the "auto" race to foreign competitors. Sales have been stagnate as gas prices have gone up and American reliability has gone down. In turn, the steel competition between the U.S. and our Asian counterparts has weakened our ability to produce cars at a competitive advantage, making it more expensive for U.S. consumers to "buy American."
American auto manufacturers have also felt pressure from foreign automakers because of the Just-in-Time system that has made Toyota the award winner for reliabilty so many years running. It is no wonder that their vehicles have such a high resale value.
I find it amazing how much branding can be associated with American auto makers. It seems a waste of money to have models under two different brand names that are almost identical. It is understandable that there is value and merit in branding and developing a namesake. However, it would seem very costly to uphold each of those brands. Very, very costly.
I also fear that the American motor companies are lagging behind in their methodology. They seem very caught up with the short term goals, and have made fewer strides to develop models for future consumers. American manufacturers have made their greatest strides with extremely large, overkill vehicles like Suburbans and Hummers. These vehicles are ineffecient on a number of fronts. First of all they are expensive. Secondly they are not as stable as other vehicles and have a higher risk of rollover. Anytime a vehicle flips over it increases the risk of serious injury by something around 90%. And serious means, somewhere along the lines of being between a living vegatable and a dead one. Third, the large vehicles not only cause more damage and can increase the risk of serious injury, but along with this comes high insurance rates for the drivers. This in turn increases the overall insurance rates because SUV's and cars are not independent of one another, and as the number of SUV's increases the greater the chance of a car hitting one, and greater damage being caused. Lastly, the fuel economy of SUV's is extremely poor. It has been projected that our natural gas and oil will run out by around 2080. Although we do have time, it seems that whatever company wins the race in developing more efficient cars, or possibly develops the use of an alternate fuel source, would gain the largest competitive advantage over its competitors.
It seems at this point in the race American manufacturers are lagging behind Honda and Toyota. I understand that there is still a market for larger vehicles and that it would be stupid for American manufacturers not to cater to this market. However, selling SUV's is not the answer to their multi-billion dollar problems.
Another problem I see with American manufacturers is the lack of a good warranty. Hyundai, for instance has a 10 year warranty plan. Not only do they have an unbelievable warranty, they have also been getting good reviews from J.D. Power and Associates for reliability. They are standing behind their product with a warranty, because it is reliable. Imagine that! Ford offers basic three year warranties on most of their vehicles and it really quelches my desire to spend 12,000-20,000 dollars on a car that they do not even believe will work for more than three years.
In conclusion it seems that the American auto makers are slipping and although they have begun an intense marketing campaign to sell cars at a lower than normal price, it will only give them short term profits that will not contribute the kind of capital necessary to push them beyond the competition. There is serious need for a reevaluation of goals within the corporations. As it stands the companies should recommit to quality and safety foremost. A safe and reliable car is what most Americans desire. Secondly, fuel efficiency is of growing concern and the foreign competitors have dealt with that type of market in Europe, Asia, Africa, and Russia for decades and they have a decided advantage in the efficiency market. Therefore, it is imperative that our companies invest in cars that will be economical and efficient on the road. Lastly, make people want to buy American again. It may not always be the most economically efficient idea, but in order to build and develop into the strong powerhouses of yesteryear our companies need to reinstill the life that American motor companies once had in American driveways.
And maybe a little prayer wouldn't hurt.