Classic Cars with Bob Gelber

Crazy car news. Several weeks ago, it was announced that the new president of the Ford Motor Company, after working there for only four months, has already earned $28 million. What's truly shocking about this salary is that, just recently, the Ford Motor Company announced record losses and its plan to close several plants, resulting in thousands of lost jobs. Are these guys nuts? Frankly, I can't say that's it's only Ford that's crazy, but all American car companies. General Motors is about to lose its title as the world's largest automobile manufacturer to Toyota. Chrysler has also lost face, because its parent company, Daimler, is trying very hard to get rid of it.

It's no secret, at least to me, but obviously not to the automotive executives in Detroit, what is wrong with Detroit. Let me quote a rather famous statement by none other than Henry Ford. In the early 1900's, Ford said, "History is bunk, because people do the same thing over and over again."

Now, jump back to 1973, when America had its first gas shortage. Gasoline prices skyrocketed overnight from fifty cents a gallon to a dollar a gallon, if you could even get gas. Many gas stations around the country could not get deliveries, and those who did saw gas lines miles long. There was panic in the - people needed gasoline. It was during this period that two rather small Japanese car companies, who, until this point, had rather modest sales successes in America, started to see a sales increase in their product lines. Their cars' gas mileage, when compared to Detroit's offerings, was impressive. The two upstart car companies were Toyota and Honda, and the rest is history. Soon, other small Japanese companies like Datsun, Nissan, Subaru and Mitsubishi joined the small car economy club and prospered. Their secret to success was based upon the manufacturing of small automobiles that achieved excellent gas mileage and earned a reputation for dependability. Not a bad formula.

What has Detroit been doing since 1973? Well, they completely gave up the small car market and literally handed it over to the Japanese manufacturers. For the last thirty-seven years, Detroit has concentrated on building large SUVs and pickup trucks. Detroit also builds some very handsome sedans and high-performance cars, but that is not their priority. The big profit lies in SUV's and pick-ups, which was fine for a few decades, but today, Detroit is totally out of step with the times and just doesn't seem to get it. Henry Ford was right - American auto manufacturers didn't learn anything from the gas crunch of 1973. To this day, they appear to be slow learners.

Didn't any of the high paid brains figure out that there is as much profit in selling 100,000 small, fuel-efficient cars as there is in selling 50,000 SUV's? Didn't anyone in the hierarchy calculate that small cars make lots of money because upstarts like Toyota and Honda are recording record earnings? Didn't any executives notice the yearly growth of the small imported cars on the highway? Automotive history will note the absolute stupidity and lack of imagination of virtually all American automobile manufacturers. If they don't change fast, they will literally become, like General Motor's Oldsmobile and Chrysler Plymouth, historically obsolete.

Gasoline prices are rising every day. Some of the blame rests with the fragile world situation, but most of it stems from the greed of oil companies. That's fodder for another article. The point is, it's obvious that fuel-efficient vehicles will be the hot ticket of the future. Yet, Detroit is still advertising its high performance cars. General Motors is promoting its soon to be released retro car, the new Camaro. Ford has a new high horsepower Mustang and Chrysler is talking about a new Hemi-cuda, or whatever the thing is called, to compete with the new hot Camaro and Mustang. As unbelievable as it sounds, with gasoline in some parts of America costing way over three dollars a gallon and guaranteed to go much higher, Detroit is in a horsepower war.

When will Detroit wake up? The new Ford Mustang, as sexy as it is, has not saved Ford. The new Camaro, so hot-looking, will not save GM. What they all need are smaller, more fuel-efficient vehicles. Ford, bring over your excellent, big-selling European Ford Focus, not the face-lifted model you will soon introduce here. General Motors, bring in more of your high gas mileage European models. Your Saturn brand will soon be selling some very impressive Eurocars under their name. That's a start. That's the ticket. Think European. Soon, unfortunately, our gas prices will rival Europe's, and all you guys know what sells over there. American car manufacturers make some world-class vehicles overseas. Why not offer the same here? Think like the Europeans, the Japanese, and yes, even the Koreans. Just lose your Detroit mindset. Here's another absurdity. Lexus is currently advertising a 450-horsepower hybrid sedan. What's with that?

Bob Gelber, an automotive journalist living in the Hamptons, appears regularly on television as an automotive expert. You can email him at bobgelber@aol.com