If U.S. automakers are going to get billions from taxpayers to keep them afloat, then someone must first explain to the CEOs of GM, Ford and Chrysler that we are now in the 21st century.
A $14 billion bailout proposal passed the House but was scuttled in the Senate. President George W. Bush is considering diverting some of the money approved for the Wall Street bailout to the automakers.
Throwing money to the Big 3 and not expecting them to adjust their long-range plans will do nothing more than leave taxpayers holding an empty bag. It is a lack of foresight that was partially responsible for this mess in the first place.
This was made clear in a recent column by Thomas Friedman in the New York Times. He pointed out that while Detroit automakers worried over state-mandated emission standards and continued to build gas-guzzling vehicles, innovative people were looking to the future.
Friedman's prime example is Better Place, an electric car network company in Palo Alto, Calif., founded by Shai Agassi. Better Place plans to set in place a car-charging system that generates electrons from renewable energy resources such as wind and solar. A system of charging stations would be built and consumers could either buy or lease an electric car and then buy miles on the batteries. Friedman compares it to the cell phone market where consumers purchase minutes.
Sound like a fantasy? Again, this is the 21st century. Agassi has already partnered with the state of Hawaii to road test the plan and has deals with Israel, Australia, the San Francisco Bay Area and Denmark.
Renault, the French automaker, and Nissan will supply the electric cars. He pitched the plan to GM but was turned down.
The plan by Better Place might not be the best or only solution to the transportation and environmental issues facing this country and the world. But it shows that there are forward-thinking people and companies willing to be on the cutting edge of a solution.
So, the U.S. Big 3 can continue their 20th-century ways or step into the future. Why they couldn't see this coming years ago, even while placating the American public's desire for gas-guzzling SUVs, is evidence that they need someone to drag them kicking and screaming into the 21st century. New leadership that will embrace innovation for all three companies ought to be considered in any bailout plan.
Otherwise, as Friedman points out, the taxpayers will be left with an obsolete horse and buggy while the rest of the world cruises into the future.
