Friday, November 14, 2008
Auto Industry Bailout - Give me an iCar
Thomas Freidman's How to Fix a Flat has really spawned a lot of commentary on the failings of the auto industry and much creative speculation on how Steve Job's creative genius could change the car much as the iPhone changed the phone.
I'm sure there is a complex intertwined web of factors that have contributed to the auto industry digging itself into such a hole. Is pouring more money into that hole to save the economy the right path? As the markets free fall and my savings evaporate part of me says, "please stop the bleeding." But putting more money into a failed business can't be the answer. There was no dotcom implosion bailout and yet we now have Amazon, eBay and Google.
When gas was approaching $5 a gallon, secretly I was hoping it would go up to $10 and higher. While that would hurt our wallets it would truly force a new way of life. Now as gas prices fall back down again it's back to the same old ways. The auto industry is living in a false reality that just isn't sustainable and doesn't follow free market rules. How can it be that we are giving the auto industry money to fund innovation. That can't be right. Shouldn't competition spawn innovation.
If we bailout the auto industry to save the economy it can only be a temporary fix. We need a game changer. That change can come out of the ashes of the the failed big 3. At some point we have to let that failure play out. That collapse can enable a new business model that values innovation, imposes its own mandates on MPG and sets a time line for no emission vehicles. We don't need bigger car companies we need are smaller more innovative ones.
Silicone valley has the chance to be the next center of the auto industry. Pioneers like Tulsa motors are leading the way. Up next the Apple iCar. Watch out Detroit