I was out for a walk with my Other Half today, and we got to discussing the future of the car industry. (Well, what do other couples talk about?) And when it came to what might happen to General Motors, the company that came to mind was McDonald's.
Okay, some background. Much of the bailout money is dependent on General Motors (and Chrysler) concentrating on hybrids and small, fuel-efficient cars. And I don't think that's necessarily very smart. Letter-writers and "green" politicians want auto companies to build mostly hybrids and tiny cars. The problem is that the public isn't all that keen on buying them, especially in the U.S., where the sales numbers really matter. Hybrid vehicles have never held more than 4% of the American new-vehicle market. And subcompact cars don't come anywhere near the top ten in the U.S.; even luxury cars outsell them. It's great to look green, but not if it puts you in the red.
Many of the major automakers are famous for something, even if it's not exclusive to that brand. Most buyers equate Volvo with safety, even though other companies now make vehicles that are just as safe. Toyota's all about hybrids, in spite of the Tundra and Sequoia. And General Motors, no matter what its woes, makes some vehicles that people still buy in droves and which return a decent profit: pickup trucks, Suburbans, and other assorted SUVs.
Hence the McDonald's analogy. Sure, in an effort to put on a "healthy" face, McDonald's plays up its salads and wraps. And what do most people do? Look right past them, and continue to order the Big Mac, large fries and keg-o-cola.
And maybe that's what will happen with General Motors. It'll make hybrids and small cars, and it will sell some of them and put on the green face, while it stays afloat with the pickup trucks and SUVs that Americans are buying. And maybe it isn't the best thing for the planet right now, but a country full of idled plants, closed dealerships and people with no jobs isn't such a grand idea, either.
