Detroit the Microcosm of America December 17, 2008
Posted by sunlightmyfire in business, cars, development, economics.Tags: auto industry, detroit auto, development, electric car, john husband, millenials, Obama, san francisco, saving america, wirearchy
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Why is responsibly handling Detroit important?
The city represents a potential outcome for America in real time. The citizens of Detroit are just wild about the demise of the Big Three. Economics dictates that unprofitable companies won’t succeed in an open marketplace. As the current global market is wide open with products, like electric cars, being introduced now, as of December 15th in China when the BYD, a $21,000 plug in hybrid, rolled out for consumption. Big 3 remains at least one stage behind, with Volt introduction scheduled for 2010 at a higher price point. The business model in Detroit can’t compete with the BYD or the rumored Indian creation the Oreva Super. Have you hugged your Smart Car today? Little Montreal Smarties have zoomed through the streets of Montreal for nearly a decade. The Big 3 could win if they introduce a cheap electric model, the 2.0 if you will, tomorrow, the next day, or very shortly after that. Is that a realistic expectation?
The business model of the big car companies just can’t compete with the rapidly changing marketplace, which is already producing the next desired auto products. Say I’m in the market for a personal transportation device. I have a lot of options and I’m aware that I have a choice to make. I’m not suggesting that someone somewhere isn’t going to need an F-150. It just won’t be me. As a city dweller, I don’t need an F-150 everyday to hall my crap around town. I make due with a backpack. MacAir owners only need a large purse (lugging my laptop, obviously).
America as I know it deals with issues similar to those ingrained societal issues found in Detroit. We should broach the urban social issues of the city as they impact the potential for progress in the city. Let’s just call it beef, and it’s everywhere. I’m currentlt surrounded by social beef between English and French speakers. The end thought is that smart people with good ideas don’t have beef. And it helps that we speak second and third languages (though lots of us have trouble spelling and have been spell check dependant since a young age). All problems can be overcome. America has already proved this fact, hola Obama, it can happen in Detroit too.
This is where the Millennials come in. Many of us are capable of directional thinking; starting with an idea and finding out the pathway to the conclusion, discovery or incorporation of the end into current psyche. We can do it really fast too. Jon Husband proposes the idea of the Wirearchy as the paradigm shift noticeable to the youth set and slightly obscured from the view of the older generation, more ingrained in the ways of the traditional past. From great idea onset to identifying exactly who might be interesting consultants and problem solvers, to finding out what parts are necessary, creating and implementing the plan and producing whatever the project happens to be attempting to complete happens more quickly than many people even realize as long as you’ve got someone from the hybrid generation bridging the gap. (That’s us by the way, go Millineals go.)
This is a big deal. If anyone is going to help put Detroit back on the path into the future, put a lot of quick thinking creators together with the single idea, technology will enable the new idea to go from germination to production a lot more quickly than anyone in Detroit currently believes is possible. Detroit is a mess right now. Citizens are distressed, losing their jobs, fearing the loss of their jobs… Mostly the adults- those people previously relied on to safeguard the industry of the city. The inner argument is that the world changed too rapidly for the juggernaut sized company to slow down and make a turn. Well, the market turned and at this point, staying the course leads to chapter 11. Restructuring is going to happen weather it’s government mandated or not. Pushing for a profitable and competitive restructuring is the best thing the government can do for the city of Detroit and America. That’ll involve sifting through the plethora of amazing ideas and enabling enough of them to develop (ie employee talent) that the market will enable the rest. Time is of the essence. Some people understand more than others.
Forward thinking idea completers are the wave of the future. And the future is here.
People actually believe this in San Francisco. I believe that of San Francisco.
Alternative Auto Industry December 17, 2008
Posted by sunlightmyfire in business, cars, development, economics, green living.Tags: alternative auto industry, auto industry, GM, plug in electric, san jose state university
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My new passion; how to progress into the future without allowing for complete destruction of all things current. It has to be possible… Although if you ask the Canadian Prime Minister, who, after being unceremoniously removed from power, irresponsibly announced the oncoming depression, even the smart people are beginning to throw in the towel… Come on millennials, it’s time to take over.
I should preface that a close family relation works for the finance department of GM, the partner of this family relation is connected to me and can’t understand how I am able to separate discussing the demise of the “family business” (GM dynasty we’re talking) from the personal disasters that ending the GM fiasco will ensue. Easily, I say. GM is chalk full of smart people who have been lulled into complacency by money. Hopefully, these smarties will re-engage their brains and innovation will occur with the right stimulus – ie, losing a job and needing to figure out how to create a new one… Smart people will figure out alternatives to standing in bread lines. Smart people don’t wait and react, they act and create. GM people who have some smarts will be just fine out in the open marketplace if they network and share ideas just like the rest of us are doing. The best part is, they probably can plug in some interesting pieces of the puzzle as soon as they stop flipping out and reengage with productive society.
San Jose State University, beautiful campus, very welcoming, has a student group that produced an emission free, standard outlet (110 volts) plug in vehicle that rolls around at 40 miles per hour. It cost $80,000 to develop, patents pending, and could be placed on the market at a $4,000 sticker. It’s got an electric motor and petals. China’s interested already (although they’ve beaten everyone by putting the BYD on the market)…
Look auto people, the kids are in on the action. Don’t doubt, charge forward. Progress happens, don’t bail, jump in.
Detroit Bailout (shhh- Loan) November 28, 2008
Posted by sunlightmyfire in business, development, economics, politics.Tags: auto industry, bailout, big 3, detroit economics, hummers, jobs
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Home sweet home- a dark, cold, gloomy sky hover over the heads of scared, depressed Detroiters.
I feel like I’ve entered a new galaxy. People think differently here, it smells of desperation.
The ENTIRE greater Detroit area is collectively begging for a Big 3 Bailout package, giant assistance from the government. Everyone’s job is at stake. My mom is a french teacher, my dad designs environmental cleanup projects for the city. He’s safe until the new budget in September. My mom is contracted for the year. They’re both freaking out.
These big companies rely on credit from a functional banking system in order to fulfill their budgetary needs. As a highly regulated industry based on fulfilling contractual obligations, their current budget, with access to credit, everything would run smoothly until 2010 when their contracts would go up for renewal. The crunch has royally screwed them over.
On the other hand, ANYONE in the market for a new car won’t be settling for anything less than Prius-sized MPG. Or else they’ll buy a used car and just make it work. So obviously, ADVERTISING NEW HUMMERS for sale is NOT an acceptable expenditure… I would go so far as to rate it immoral but I guess the morality of the big truck market is another discussion entirely.
The Big Three are facing a serious problem in that they’re making the WRONG product. If you believe in a capitalist market, this company should be eliminated naturally as Toyota and Honda ship their fantastic cars to the Port of Long Beach, parked until the market picks up again. (I’m in the market for a 5 door Yaris Hatchback if you need someone to create a space in the port parking lot.)
If the government becomes the lender of first resort in this case, as opposed to the last, Americans are never again allowed to hate on socialism, Canada or government assistance ever again into the future.
I don’t want a dollar of any bailout to go to a company that still thinks manufacturing Hummers is a good idea. Since Germany and Japan, among other countries, have just bailed out their auto industries, Detroit is in a good position to expect the same from our government. However, if Detroit gets the loan, get the union workers to collectively rip apart current Hummer manufacturing plants and install Volt plants immediately. If the Volt will save you, make it now. Now’s the time. I’m in the market.
We’ll see what happens.
