Friday, March 6, 2009

The Wheel World

Sheesh, it's getting hard to find things to blog about that actually present a worth while view point. Ya, we know about GM and John Tory, both leaky ships in the bay baye. We now know about the latest job losses in the US and how they compare to "1983". And we know that the Stock markets are as nervous as a lone mouse invited to a convention of Cats. What we aren't hearing a lot of is what comes after the nuclear winter? You know, once the Squirrel is all gone.. after the kids have licked even the smell of the Oppossum stew from their bowls. What then?

Well fellow scavengers and rodent hunters, then comes the inevitable; restructuring.

Prophet of Doom at the Motor Show

Having absorbed that bit of shoulda woulda maybe coulda, I have something a little different to add. Instead of all these car companies dreaming about being the ever larger wheel, maybe it's time for them to rethink their objectives. What I mean is, do they consider that they have become too big? Isn't that the basis of their problems? Without ever increasing sales volumes these companies become financially unmanageable and begin to self destruct at some point.

If car manufacturers were more focused on domestic markets, and those pulling the strings of globalization had real foresight, these companies and the products they sell might well be better for it. Better to be smaller and more resilient than the wounded behemoths that many are now.

Even built in obselence couldn't achieve the goal of ever growing markets. Only a rethinking of the nature of these companies diluting each others base markets will eventually bring continuity and stability.

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