Friday, January 26, 2007

bad news is the new good news

Automobile maker Ford reports a record $12.7 billion loss in 2006. Ford chief executive Alan Mulally says Ford plans to "operate profitably at lower volumes and with a product mix that better reflects consumer demand for smaller, more fuel efficient vehicles".

You're telling me American auto manufacturers are just now realizing that consumers want fuel-efficient vehicles? That it has taken this long for them to realize monstrous gas-guzzling SUVs aren't a sustainable technology? Nope, they knew it but they insisted on squeezing as much out of the SUV as possible, and even foisted larger, less economical trucks (like the Expedition: "so large it's silly.") onto the American auto scene. They saw the writing on the wall and they ignored it. Rather than prepare for the necessary trend of sustainability and decreased dependence on non-renewable resources, the Ford execs opted for quick profits ($1.44 billion in 2005). And now they're moaning about massive losses and planning to close 16 factories in North America and cut 45,000 jobs. It's just sad, really. The only upshot is that finally, finally, American carmakers are facing the reality of the not-so-distant post-oil market. But my bet is that their hybrids will suck too.