See the USA in a Chevrolet, but no longer a Pontiac
By Jim Roth | Phillips Murrah P.C. |
The Journal Record
[ JUNE 8, 2009 - OKLAHOMA CITY, OK ] - GM long epitomized the American corporation. It was the unquestioned, unchallenged leader of the auto industry. Dinah Shore sang “see the USA in your Chevrolet” and we did. The ads touted American things like baseball, apple pie, hot dogs and of course Chevrolet. Cadillac set the standard for luxury. Other products claimed to be the ‘Cadillac’ of radios, widgets or whatever. A couple of guys breezed down Route 66 in a Corvette on our TVs. Everybody wanted one.
On June 1, GM declared bankruptcy. What happened?
What happened is clear. General Motors ignored foreign competition. GM had dictated to their customers what they should want – large chrome-laden gas guzzlers belching CO2. They failed to anticipate that when the competition offered smaller, high-quality, economical vehicles, the American public would forsake their behemoths.
The UAW assumed that the GM pockets were so deep that they could ask for the sky. GM was so confident in their dominance that they acquiesced. Congress failed, for decades, to pass legislation that would have required GM to improve quality, gas mileage, emissions and safety. These are the things that allowed foreign competition to thrive.
What’s next? In a press release from GM, the historical bankruptcy was described as a “fast track to competitive future.” Remarketed as the “New GM” on their Web site, a 30-second spot contains the following voiceover:
“Let’s be completely honest, no company wants to go through this, but we’re not witnessing the end of the American car. We’re witnessing the rebirth of the American car. General Motors needs to start over in order to get stronger. … The new GM is going to be: fewer, stronger brands. Fewer, stronger models. Greater efficiencies. Better fuel economy and new technologies. Leaner, greener, faster, smarter.”
A GM blog says, “In the near term, we can use compressed natural gas (CNG) in internal combustion engines. Midterm, natural gas will create electricity for future models. In the long term, natural gas can make hydrogen for fuel cell vehicles, either at the filling station or in homes.” GM is focusing on liquefied petroleum gas, a mixture of butane and propane gas. LPG reduces nitrogen oxides, carbon monoxide and CO2. New options like plugging into the electricity power grid are now on the GM radar.
President Obama articulated the government’s role. “We are acting as reluctant shareholders, because that is the only way to help G.M. succeed,” asserting that the government’s backing, coupled with 21st century restructuring, “will give this iconic American company a chance to rise again.” It’s clear that the government, with a 60-percent ownership, can dictate a different product.
California did not wait for Congress to pass needed legislation. AB 1007 required the California Energy Commission and the Air Resources Board to develop a State Alternatives Fuel Plan outlining specific strategies and actions the state must take to increase the use of alternative fuels. The plan found that increasing natural gas vehicle use and in-state renewable natural gas production will be key to reducing California’s greenhouse gas emissions. Other states are now patterning their laws after that leadership. New, realistic requirements will pull GM into the new century rather than letting them retreat into the past.
To preserve their union, the UAW has agreed to painful cuts in benefits and even more layoffs to assure that they and GM will continue to exist in the future.
There is reason to believe that GM will succeed. They were able to switch quickly from autos to tanks in 1942 at the request of President Roosevelt.
Changing from fuel-guzzling SUVs to leaner, greener models should not be as daunting of a challenge. In fact, GM announced last week that they are selling their Hummer brand and moving in the right direction for budget-conscious American families.
They are working on a new product lineup in 2009 and 2010, including the China-manufactured Chevy Cruze. We should want this American company to make cars Americans want in places that employ America’s workers. That trinity is still possible.
They have the backing and ownership of the U.S. government, Canadian government and the UAW. Their suppliers, workers, cities and states are all receptive to working with them because they all have a vested interest. With that widespread support there is reason to believe GM can and will succeed.
I know times are tough, but if you’re in the market for a new, leaner, greener, faster, smarter American car, please “see the new USA, in your new Chevrolet.”
Jim Roth, a former Oklahoma corporation commissioner, is an attorney with Phillips Murrah P.C. in Oklahoma City, where his practice focuses on clean, green energy for Oklahoma.