Tag: automakers

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$4,999 Car Is the Answer

Today’s Jeopardy question: How do you turn around the auto industry? For at least one automaker, perhaps even two or three, a sub-$5,000 car is my answer. Over lunch, I read news analysis “Small Isn’t Beautiful” in Sept. 19-25, 2009, Economist (I’m a print a subscriber). Economist aptly explains why the auto history is hosed, now that cash-for-clunkers programs are gone, there’s no credit for fancy, high-priced cars and demand increases for smaller, fuel efficient and environmentally friendly vehicles. Let’s not forget the production problem: For mature markets, at least, production capacity exceeds demand (and did before the econolypse).