Several readers have asked that in addition to exposing the ills of the industry we suggest possible cures. Here goes, and give us your opinion and feedback.
The industry's plants are aged, and do not reflect current technology. An example of the new technology is the new Ford assembly plant in Brazil, where the assembly line is almost completely robotic and can switch from one model to another almost instantly. Suppliers are located in and around the plant so inventory is on a real time, as used basis. Even the transportation of finished cars is owned by and integrated with the production line.
The future of the auto will not involve petroleum to the extent at present. Much R&D money is being devoted to new propulsion systems using electricity stored in batteries, or hydrogen fuel cells. The suppliers of these new fuels are also engaged in expensive R&D. Why not combine R&D in one facility using joint resources. The synergy alone would mean big savings.
A new compensation system should be created to reflect the reality of a reduced market share and fluctuations in the economy. Wages and salaries need to be related to productivity and volume, not a fixed salary or hourly rate, with some minimum level related to cost of living. Call it a piece work pay system.
New materials, not based on petroleum, should be developed to substitute for steel and plastics. That alone could produce a million jobs. Cars should be almost completely recyclable.
Auto prices should be set inversely proportional to mileage performance--the lower the mileage the higher the price. The gas guzzler tax should be retained.
There should be a scientific standard created to rate the pollution value of each model under various types of use.
All the above would rationalize the production, sale and performance of cars, and the costs associated with those.
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