The market will reward manufacturers that are able to bring higher mileage autos that people like to the marketplace. We need to award innovation instead of getting the government involved to force this. Imagine what could be done if the millions spent on lobbying could have been spent on research and engineering to create new products that people want.

With increased energy prices, people will demand higher efficiency and manufacturers that can have these options available will be rewarded.

The market will reward manufacturers that are able to bring higher mileage autos that people like to the marketplace. We need to award innovation instead of getting the government involved to force this. Imagine what could be done if the millions spent on lobbying could have been spent on research and engineering to create new products that people want.

With increased energy prices, people will demand higher efficiency and manufacturers that can have these options available will be rewarded.

I think your rewriting of the original writer’s words is stronger and better. Sadly, that isn’t what BSI wrote.

If his point was that the Big Three shouldn’t have wasted time lobbying the government, fine — I can agree with that.

But however did Toyota and VW detect the market demand before being told to by the almighty state? They paid attention to the market. Frankly, The Big Three could and should have done the same thing, CAFE standards or not. In fact, the Big Three could have spent $100m more on lobbying, but still have done their homework on consumer demand and not be in the position they’re in today.

How do I know this?

Well, it seems that Toyota also has been lobbying fiercely against CAFE standards. (That was dated 7/30/2007 — the Prius was brought to market in 1997.) Furthermore, apparently as of March of 2007, Toyota was planning to spend a record amount of money to lobby Congress, and create its own Political Action Committee. Apparently, Toyota also thinks the government doesn’t understand the market.

Finally, in terms of money spent lobbying, GM spent $8.7m in 2006 (to pick just one of the Big Three). That year, GM earned $207.3 billion in revenues, which means that their lobbying expense was 0.004% of their revenues. It beggars the imagination to think that $8.7m would have made a whit of difference to GM’s investment in their products.

There are lots of problems with the US Auto industry. I would put not being sensitive to consumer demand as one of the big ones. I just don’t think that has anything whatsoever to do with government relations. For a marketer of all people, like BSI, to draw some sort of specious connection between lack of comprehending the market and lobbying activity is just profoundly silly.

-rsh

I think your rewriting of the original writer’s words is stronger and better. Sadly, that isn’t what BSI wrote.

If his point was that the Big Three shouldn’t have wasted time lobbying the government, fine — I can agree with that.

But however did Toyota and VW detect the market demand before being told to by the almighty state? They paid attention to the market. Frankly, The Big Three could and should have done the same thing, CAFE standards or not. In fact, the Big Three could have spent $100m more on lobbying, but still have done their homework on consumer demand and not be in the position they’re in today.

How do I know this?

Well, it seems that Toyota also has been lobbying fiercely against CAFE standards. (That was dated 7/30/2007 — the Prius was brought to market in 1997.) Furthermore, apparently as of March of 2007, Toyota was planning to spend a record amount of money to lobby Congress, and create its own Political Action Committee. Apparently, Toyota also thinks the government doesn’t understand the market.

Finally, in terms of money spent lobbying, GM spent $8.7m in 2006 (to pick just one of the Big Three). That year, GM earned $207.3 billion in revenues, which means that their lobbying expense was 0.004% of their revenues. It beggars the imagination to think that $8.7m would have made a whit of difference to GM’s investment in their products.

There are lots of problems with the US Auto industry. I would put not being sensitive to consumer demand as one of the big ones. I just don’t think that has anything whatsoever to do with government relations. For a marketer of all people, like BSI, to draw some sort of specious connection between lack of comprehending the market and lobbying activity is just profoundly silly.

-rsh

Fuel economy standards are in place (and they are in place throughout most of the developed world in one form or another) to require automakers to factor public interest, in this case reduced fuel consumption, in the same equation as short-term profit. That fact this this particular element of public interest is now so clearly in line with consumer demand is a surprise to no one (ask Toyota). Despite your contention to the contrary, it’s pretty clear that elements of the government (which is supposed to be a reflection of public interest) have understood the market better than these companies on this issue. And now the Big Three are paying dearly. And so will we, the US taxpayers, when one or more of these companies has to be bailed out (again).

If only they had used that money to invest in their products…….

Fuel economy standards are in place (and they are in place throughout most of the developed world in one form or another) to require automakers to factor public interest, in this case reduced fuel consumption, in the same equation as short-term profit. That fact this this particular element of public interest is now so clearly in line with consumer demand is a surprise to no one (ask Toyota). Despite your contention to the contrary, it’s pretty clear that elements of the government (which is supposed to be a reflection of public interest) have understood the market better than these companies on this issue. And now the Big Three are paying dearly. And so will we, the US taxpayers, when one or more of these companies has to be bailed out (again).

If only they had used that money to invest in their products…….