Automakers Continue To Make Mistakes

As mentioned by, like, all news outlets today, Obama will seek to strike down Bush's actions that prevented California from enacting more stringent automobile emissions legislation than the rest of the United States. Automakers and other jerks have been calling this proposed action a terrible idea that will only add to the burdens automakers are facing citing lack of technological innovation and increased production costs at a time of crisis as reasons to avoid this market segmentation. They are totally wrong, and are thinking about the situation in a completely naive and elementary way.

California, if it were a country of its own, would have the 9th largest GDP in the world. That's a lot of money. It also has nearly 40 million people. That's a big market. I'm not familiar with the automobile emissions standards of other countries, maybe they don't even exist, but I have reason to believe that as the global push for climate change mitigation and prevention continues to gain force, the international community will adopt standards more stringent than the absurdly lax standards the US currently complains about. In other words, strict regulations in California are merely a taste (not even really a taste, more like the sensation you get when you smell an onion being grilled) of what's to come in the near future.

A strict set of California regulations will force automakers to change their practices. It will allow for a slow transition into a more fuel efficient fleet as manufacturers begin producing California-legal engines while selling existing models in most of the rest of the US. What it allows for, though, is a new frontier of competition that none of them seem to be embracing. Let's say new regulations would allow only 20% of the cars currently on the market to be sold in California. A manufacturer, then, that has transformed their entire fleet to abide by the new regulations would be in a near-monopolistic position. They would have 80% of the California market. Jackpot, right?

As automakers beg for our tax dollars, shouldn't they be looking for opportunities to gain a leg up in the market? Shouldn't they be searching for new markets? Satisfy new demands? There's nothing better than a forced change in demand. No more public opinion polling. No more satisfying the people that like it when their car door makes a loud sound upon closing (suggesting a heavy, sturdy, and safe? car). People will take what they are allowed to get. As far as the technology not existing, well that's just completely incorrect. Sure, it's probably hard to get a Hummer to average 15 miles per gallon (still grossly low), but that just means people won't be buying Hummers.

Time's of extreme hardship are amazing opportunities for fundamental change and preparation for the future. The days of the Ford Taurus have to end. The thing is 25 feet wide and can fit 9 massive suitcases in the trunk. Not only would it cost a fortune to put those 9 suitcases in an airplane, the width of the car prevents its owner from parking with any sort of ease in the ever shrinking parking spot size of urban parking lots (also, no one really puts 3 people in the front seat anymore, do they?). AND IT'S FRICKIN' UGLY!!!! Stop dragging your heals, Detroit, and make me an attractive car that abides by respectable environmental standards. Nothing you've been trying for the past few years has worked. Your cars suck. Try this, and your luck just might change.