GM, Ford & Chrysler are all losing money hand over fist. GM and Ford’s commitment to gas guzzling behemoth’s, the rising cost of oil ($59 a barrel yesterday) and their apparent inability to see the writing on the wall (who knows the roots of that metaphor – there’s a prize) assures their eventual demise. Toyota, on the other hand, is building vehicles that make sense – and making money in the process. Tom Peters links to this NYT article by Tom Freidman (login required).
Having Toyota take over General Motors – which based its business strategy on building gas-guzzling cars, including the idiot Hummer, scoffing at hybrid technology and fighting Congressional efforts to impose higher mileage standards on U.S. automakers – would not only be in America’s economic interest, it would also be in America’s geopolitical interest.
Because Toyota has pioneered the very hybrid engine technology that can help rescue not only our economy from its oil addiction (how about 500 miles per gallon of gasoline?), but also our foreign policy from dependence on Middle Eastern oil autocrats.
I think he means 50 MPG which is still incredibly significant – the national average is estimated at 20 MPG – but many writers believe we can experience 250 MPG if we change our emphasis on the kind of vehicles we drive. (Read my blog post here on my own predictions.)
Roy Williams has an interesting Monday Morning Memo that speaks to this issue from a different perspective. Read it here.