Wednesday, August 23, 2006

Muscle cars or muscle heads?

I don't know much about the economics of the auto industry, but judging by the failing fortunes of Ford and GM they don't either. And recent news suggests they aren't learning much. In order to boost their market share, the companies are reviving their muscle cars, the Camarro, last produced by GM in 2002, and a retooled Ford Mustang. The companies aren't expecting the retro-styled gas-guzzlers to be big sellers. The objective is "brand revival," convincing potential customers, specifically male baby boomers, that the American giants can still create state-of-the-art cars.

It seems to this lay observer that Detroit has, to its own detriment, relied excessively on big cars and big horsepower while the Japanese have concentrated on small, efficient cars that are kinder to both the pocketbook and the environment. Thus the Japanese industry thrives and the U.S. industry falters. Yet here it goes once again, counting on muscle to save the day. Hope springs eternal.

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