Automakers could achieve 62 mpg by 2025, but only if they have to. Is that the kind of competition that capitalism breeds?

How does the rest of the world survive without such large pickups?

Can capitalism and energy independence be friends?

If automakers were forced to achieve a CAFE requirement of 62 mpg by 2025, they could do it a top GM executive said at the National Automobile Dealers Association annual convention – a sentiment reiterated by other auto executives.

No, 62 mpg by 2025 won’t be easy for either automakers or consumers, but can America ever achieve greatness again without a great vision forward?

During the run-up to the bankruptcies of GM and Chrysler, GM was often compared to a huge ocean vessel, such as an aircraft carrier. Changing course simply isn’t easy. It takes years to move a car from concept to reality. Years to update production facilities. Years to develop new supply chains.

Significant change requires significant long term planning.

Yet, despite this long term business model, quarterly financial statements are often the key drivers of long term decision making in the auto industry. Today’s stock price is simply more important than the long term reality of the automotive world, regardless of the fact that today’s decisions impact the auto industry for many years, even decades.

Unfortunately, the capitalistically driven auto industry has no real vision forward except for corporate profits. Competition is more marketing-driven than product-driven. A focus on energy independence, consequently, is irrelevant if it doesn’t improve next quarter’s financial statements. Maximize what’s working today, focus on tomorrow……tomorrow. Thus, tomorrow always feels a lot like today.

I think the industry can do anything it wants when it puts its mind to it,” stated Mark Reuss, GM’s top North American executive recently.

Too bad the industry seems to only have its mind on managing the status quo, rather than pushing the competitive bar higher. If only the world were so constant.


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