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Week of November 9, 2008 - November 15, 2008

Auto Industry and "drift"


Allow me some introduction the subject. I have been headhunting on and off for almost twenty five years and periodically my practice has involved the auto industry. Basically the corporate executives and most engineers who have come out of the auto industry don't have a clue how to compete outside their world. They are worse than the utility industry or the military and display entitlement and false superiority. The most important thing that sticks out is a steadfast denial that innovation or risk is a worthy thing.

Now I have worked in the alternative and renewable energy sector where things are quite exciting when it comes to innovation of personal transportation outside a burning fuel car. The loss of the Big Three would not be the worst where like all industries the remnants could be reorganized. My thinking is that if the personal transportation industry and trucking/train engine world should be split up. These companies should be broken up where technologies are divided where one group goes hybrid/transition. Another group goes hybrid/rechargeable. Another group goes all electric. And another group goes fuel cell. 

The US takes stock in each group like a venture capitalist with Board of Directors. The taxpayers receive the investment. You create a competitive marketplace both for engineering and parts and overall competition over what technology emerges.

One anecdotal example of what is on the horizon. A scientist at Purdue in '07 discovered that a simple chemical reaction of water running over an alloy of aluminum and gallium  instantly releases the hydrogen molecule into a vacuum where conceivably a hydrogen fuel cell reaction could take place---emitting water. The oxygen molecule bonds with the aluminum in the alloy and is converted to bauxite, the original form of aluminum. This system could then be commercialized where once a car uses up its usable aluminum it removes the chamber and replaces it with a new one, the old chamber could be commercially recovered like a fill up or toner refill cartridge.

The thing is for at least 30 years and possibly for 60 years the Detroit auto industry has been mining the world for its own entitlement and strategically, economically, environmentally and fundamentally they are out of chances. Break them up, retrain the working class work force and let the middle managers and executives find their way in the new century.
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RWN

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