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Could electric cars save the US auto industry?

The electric car could have a major role in saving the American auto industry, but that technology alone may be too little, too late. The big three manufacturers all build fine cars these days, but have the history of the lower quality, gas guzzling vehicles of the past couple of decades to overcome. When coupled with the perception that the Japanese build a better car the road to future success of the US auto maker becomes even bumpier. Therefore, if the electric car is to save anybody it must be a shining example of the best in design and workmanship.

Prior to, or simultaneous with, the introduction of a mass produced electric car the US automakers must take steps to improve their way of doing business in order to have any chance of survival into the next decade and beyond. The manufacture of automobiles has too long been a business thought of as essential to the US economy, and therefore practically failure proof. While it is true that a very large part of the US labor force is in some way related to the big three, it isn't true that 'business as usual" will keep them solvent. All three companies and all the labor unions must step back and decide what is necessary for survival. This should include management's realization that huge salaries and bonuses are counterproductive to staying in business. The union management and rank and file must also be willing to make concessions in wages and benefits. Currently the per hour cost of wages and benefits for the average worker in a US auto plant exceeds $70 per hour. Contrast this to the average wage and benefits cost to the employer of a worker in a Japanese auto plant here in the United States, which is around $45 per hour. With labor costs alone nearly one third higher than their Japanese competition the US automaker is already in trouble.

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Necessary also would be a very effective marketing program aimed at educating the American car buyer to the advantages of the electric car and its place in a "green" world. Of course a plan to deal with the depleted batteries must be in place which will satisfy even the staunchest environmentalists, and the publics awareness of this must be an aim of the marketing plan as well.

With the implementation of these steps, and a firm determination to change the business to fit the world, and not as in the past, the world to fit the business, the US automakers can survive for years to come.
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