Comment It's all about _Regulation_ (Score 2, Interesting) 324
- Being in the auto industry myself... I've formed a few opinions.
- While consumers drive the introduction of new technology in the auto indusry (i.e., demanding diesel engines because of better gas mileage vs. sticking with good 'ol unleaded because you can get it anywhere), consumers don't even have access to many of the technologies developed by auto companies because our regulatory environment hasn't changed significantly enough to justify the cost of a full launch. That is, lots of great ideas end up sitting unfinished on the drawing board because their projects are killed when the suits don't see a high enough return on their investment based on current conditions (i.e., gov't regulations).
- To a large extent, the US government uses CAFE standards and other regulations as barriers to entry for more advanced foreign competitors. If GM or Ford were able to beat Honda and Toyota to market with environmentally friendly technology, we would see environmental regulations tighten much faster.
- As for now, the US auto companies are squeezing the light truck market for what its worth... and devoting little real attention (e.g., attention that produces vehicles/features that actually make it to market) to fuel economy. And until the Big 2.5 make a quantum leap past Japan in time to market with new technology or the US government tightens regulations, we'll continue to see Navigators and Escalades on the roads and dealer lots. The Chrysler soap-box derby machines will scarcely see the outside of auto shows for quite some time.