Capitalism/financial crisis: Auto industry crisis

I agree that it is an essential component to have the continued existence and, hopefully, restored economic health of domestic auto manufacturers. Full disclosure: I drive a '97 Toyota RAV4 (the last time I was able to afford to buy a new car, since my Wall Street career cratered shortly after), BUT my stepfather was a loyal GM dealer mechanic, we remain loyal "Chevrolet" fans, and my first cars included Chevies.

For this quick installment on the financial crisis and the structure of true capitalism, I offer one suggestion to the domestic car manufacturers. I totally agree with Congress that you need to do some humble and visionary restructuring before asking for bailouts, which would be more good money after the bad, otherwise. No jobs get preserved long term if one is simply pursuing a failing strategy. That has been the fundamental problem for several decades now.

Having said that, and while I support fuel efficient and alternate fuel cars, a "worthy cause" should never be the only driver of one's consumer strategy. In other words, don't write a business plan just to appeal to theoretical "greens." You need to develop your business plan together with your hoped for future consumers directly, not "special interest" advocates, no matter how worthy may be their cause and their singular viewpoint. I have my Ivy League university Bachelor of Science in environmental sciences, and I can tell you, this generation of "greens" are terrible economists, business people or even intellectuals or visionaries. Thus they cannot represent your hoped for consumers.

Therefore I offer one suggestion (among many that I have up my sleeve, ha). One is to take a leaf from how the aircraft manufacturers plan product and book orders. One component of your new business plan should be to put a new emphasis on placing future orders for product with corporations, government entities, agencies, not for profits, and other organizations who might be interested in buying a fleet of cars. This would include companies who already have fleets, but also those who have not considered doing this. Here is where there is new opportunity. I think some major corporations should consider developing fleets of cars for business, not only to replace plane business travel, but as a job benefit in lieu of wage increases that may not be possible. For example, even minimum wage earners would experience a great increase in their personal prosperity if they had use of a company car. So I think you should develop that idea and pitch it to corporations, and then design or identify what of your product line would be ideal for that niche market of fleet purchaser, and then book future product orders. Having those product orders on your books, you then know how to retool and, obviously, you know what automotive product is most appealing to both existing and new market niches of customers.

(By the way, well paid talk show hosts driving your various expensive loaner cars and bragging about their relationship with you, while their listeners cannot afford your product, hardly enhances your marketability or your product appeal. In fact, I find that approach personally repugnant, listening each week to the talk radio hosts gloat about how you kiss their rear ends and loan them fancy cars to drive, while I pray that my '97 car lasts until I get my next substantial paycheck).

I've thought about this idea for quite a while and already know the usual objections, and I can assure you that there are very agreeable solutions to all of the likely objections. This approach would be something like win-win-win-win-win for producers-customers-workers-low wage earners-the stability and growth of the economy.

I hope that all of my readers find this modest suggestion useful!