Make no mistake about it, the end times are near for the Big Two.Give or take ten years,the two will be downsized out of existence.The crux of the problem is that,in the new world of international competition and the multiple choices available to the consumer, their old business model of monopoly capitalism no longer works.In the new world of genuine market competition, the nimble,the technologically savvy and high quality,low cost producers thrive.The dinosaurs die.
In a way the market last year has already given the last rites to the dying giants.When it is necessary to give a $3-5,000 rebates to move your cars off the dealer lots, you are being told that your cars are not appealing.Even with the rebates.
So, what do the Big Two do for an encore? They produce more of the same gas guzzlers that were rejected by the market,of course! After having wasted nearly ten years without investing in hybrid car technology, Ford now wants the government to subsidize the development of hybrid car components.That investment and research has already been made by Toyota and Honda.They stand on the brink of delivering a knockout blow to the Big Two.
Even with this prospect staring at them,the Big Two act as though they are still the Kings of The Hill.Many new technologies will be midwifed by the hybrids and this will bypass the clueless Big Two:Plug-in Hybrids,fast charge batteries,drive by wire concepts,collision avoidance systems and many more.
Like other revolutions before it, the automotive revolution will also not be televised.
