Fuel and the American Way.
So my next topic has another great impact on why the American motor companies are feeling the pains of the economy today (more so than others). The American economy in its development has relied on gas. In no other country is gas as important as in America (I am sure arguably). Almost everything we ship relies on trucks to distribute. America in geography is a large country, and in its expansion the need for independent travel became a necessity. The car was originally a luxury utility that grew into a symbol of middle class to,
“Your 16? Are you getting a car?”
Thanks to Henry Ford, vehicles became available to nearly all people. Now, to fast forward to current times… the auto industries have enjoyed being able to build bigger and bigger cars and not having to worried about the gas. For years, the auto makers haven’t really had to pay attention to what keeps their cars going (except for whatever regulatory requirements the government asks). Instead the focus in America was size and features. However, in many other parts of the world… gas was much more of a rarity. Many cars from over seas can’t make it here in America because they are not big enough. Such as some of the micro’s shown here.
So over in countries such as China, Japan and India car manufacturer’s and consumers were far more interested in buying cars with efficiency and conservation. This obviously set these companies in a better position because now that the gas price has risen… American companies are having to re-think their car creating strategy… worse yet, when signs were pointing towards the raise in gas prices… American car companies ignored the coming gas raise and continued to create cars such as the Hummer and numerous SUV’s.
So now looking at today’s prices and market… the American auto-makers are in a bind… but its not only just the size and the lack of consciousness of fuel prices on fuel. It also lies in the fight for change and the gas/car maker tie. Its not just enough to ignore the incoming rise in gas prices but they actually helped fight the evolution of fuel efficient cars and alternative fuel vehicles and now both the gas companies and car companies are waving the flag of, “We are fuel efficient and riding the wave of change.” But honestly… years ago… they didn’t want to see it happen anytime soon… more on this next go.
