U.S. Auto Industry Caught with wrong product mix again
In the 1970s The U.S. auto industry was blindsided by the 1973 Oil Embargo. Efficient imports autos like Datsun, Honda and Toyota swept in to fill consumer demand for more economical transportation. Homegrown solutions were way off the mark — Ford already had the heavy Pinto. I owned a 1974 Ford Mustang II — what a POS that was. Did they learn anything? Nope!
Today Ford, GM and Chrysler are caught with too many trucks and SUV’s in showrooms as sales of these segments decline in the double digits. Toyota has passed Ford for the #2 sales position in the U.S. Honda is set to pass Chrysler for #3.
Why does it matter? Well the auto industry is an important part of our national economy. Many thousands of workers build the cars and many others work for suppliers to the industry. Until we can shift these people to other jobs a large part of the economy depends upon all of us doing our part and buying a new vehicle. But with the new reality of $4/gallon +/- gas consumers are finally rejecting trucks and SUVs. Frankly the U.S. economy is to reliant upon sales of autos and of new mostly suburban homes.
For years the big 3 (GM, Ford, & Chrysler) have bought and rebadged efficient vehicles to meet demand. They’ve also revised their own models that were designed and sold in Europe and other countries where fuel efficiency has long been important. For much of the 1970s and 1980s Chrysler had a deal with Mitsubishi — my 1984 Dodge Colt was a rebadged Mitsubishi Mirage — it was also a great car. Ford brought us their German built Fiesta and later rebadged Kia’s. GM looked through products offered elsewhere and brought us Vauxhall Chevettes and today they sell the Aveo built by GM Daewoo in South Korea. The Pontiac Vibe is a rebadged version of the U.S.-built Toyota Matrix. Saturn’s Astra is a European Opal. For some reason these auto makers can’t manage to design and build a small & efficient car on our shores.
This year Daimler AG, maker of Mercedes vehicles, began importing the tiny French-built smart fortwo. It only holds two people while showing we don’t all need massive vehicles to get around.
According to fueleconomy.gov the Toyota Prius remains the most fuel efficient mass production car available to U.S. buyers. Meanwhile U.S. automakers were busy trying to prop up sales of trucks and SUVs with hybrid and flex fuel technology — so now thee vehicles just get poor mileage rather than abysmal.
U.S. auto buyers have fewer efficient choices than the rest of the world. We’ve been buying land yachts for so long now the auto makers don’t waste their time with more efficient and useful vehicles. Buyers in other markets, for example, can get a Honda Accord station wagon or a 4-door Civic with a hatchback Sedans we’ve got but a handy hatchback is a rare find.
For used car shoppers the prospects are even fewer. For those on limited budgets the big gas hogs often become the most affordable vehicles to purchase. Thus, those who can least afford the price of gas have the worst mileage.
Ideally we’d have such a great mass transit system we wouldn’t need private autos but the reality is our region is so spread out that we’ll never have such a system. As gas prices rise people will still have cars. I just hope our choices of cars improves.

Some owners of lofts in the King Bee building on Washington Ave have taken their complaints to court. From a current RFT