Newsweek declares Detroit finally "gets it" on gas-guzzlers. Lots of hybrids and Detroit execs talking like they have repented from past sins. I'm not taking this at face value, but hope it's the real deal.

Note the Chinese made their first appearance. In maybe five years, Detroit could be in serious trouble if a significant part of the market buys Chinese.

I don't know if Communist ideology controls politics much these days in Peking. If it does, they might plan to build Chinese luxury SUVs, so the capitalists will drown themselves in debt and more job losses. It's a thought...

I earnestly hope Detroit is up to facing current and future challenges...

 

China is very much state capitalist, communist methods were used to create the dictatorial client state, but as far as ideology China shares very little with what Americans became familiar with as the communist conspiracy coming from Russia, and is much more similar to how the US is running, largely state capitalism with more overt repression (although that's slowly changing in the US on the federal level as policy shifts rightward).

 

China's first U.S. entry: The Geely 7151 CK.

http://www.autoblog.com/2006/01/10/g...oit-auto-show/

 

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Newsweek doesn't get it. Detroit built [and currently offers] what a large portion of the American car driving public wanted, big cars and trucks. Honda (Ridgeline), Toyota (Tacoma) and other "non-Detroit manufactures" have followed suit.

American manufactures are now responding to economic forces that are making smaller fuel efficient cars more popular. For those of you old enough to recall, we went through the same thing in the early 70's during and after the Arab oil embargo. (see: http://en.wikipedia.org/wiki/Arab_Oil_Embargo)

Detroit's decline in my mind has been styling, cost and quality, correctly identified by Newsweek in the article referenced. The Arab oil embargo offered the opportunity for the Honda, Toyota and others to gain market share quickly with fuel efficient smaller cars. Quality products, appealing design and reliability since then has built brand loyalty.

What next? My opinion: Detroit will scramble to produce smaller more efficient cars, some will be hybrids. The environmental aspects of hybrids will be largely ignored by the general populous. Survey all that is being written about hybrids; How often do you read much about the environmental benefits? Market share will likely remain largely unchanged, possibly grow a bit for the manufactures that already have product that appeals to the current market trend.

In the longer run what happens next will depend on oil prices. If they go down for an extended time, I fear will see the same long term effects that occured well after the oil embargo, big oil gulping cars. If they stay at current levels I see things staying pretty much as they are.

But there is a new wrinkle on the horizon, offshoring of good paying jobs. As more and more of us loose good jobs do to this phenomena, small, cheap, fuel efficient cares could be more the norm. How will Detroit respond? Time will tell....

 

You might see Americans driving Chinese Jumbo SUVs....