I recently wrote a blog about the modifications the California Air Resources Board is proposing to make to the Zero Emissions Vehicle Program. This is the same program that was adopted in 1990 but, by the date it was supposed to actually come into force, had been so weakened and gutted, the vehicles that actually were Zero Emission did not survive to be mass produced and marketed. I got to pondering as to why, and an interesting thought occurred to me. The auto industry is more focused on maintaining a status quo they are comfortable with than they are in listening to what consumers actually want and producing the vehicles that we are asking for.

Let me see if I can explain this odd blind spot that seems to be ubiquitous throughout the industry. Back in 1990, when the Low-Emission Vehicle and Clean Fuels (LEV) regulations were first adopted, California essentially showed the auto industry which way the auto market winds were blowing. We want low-emission, clean-fuel, high-efficiency vehicles. Seems pretty obvious, doesn’t it? At that time, the only technology (other than internal combustion) that was practical for powering cars was electric motors driven by rechargeable batteries.

The problem is that this is not a technology Detroit has extensive experience with. Detroit has the experience, the factories, the personnel, and the robotics to make big, powerful, internal combustion engines. Instead of taking an honest look at the changes going on in their own industry and investing in being a leader in those changes, Detroit invested in legal challenges to the changes. I don’t know exactly how much money the auto industry spends in legal fees, resisting the change to greener cars, blocking or gutting every low-emission regulation that gets proposed, filing lawsuits, and lobbying government representatives. I’m sure there is an accountant out there with that number. I feel a compelling need to ask, though: If Detroit had spent that money in research and development, instead of legal fees, where would we be now? What would we be driving? And would the environment be in any better shape?

Back in 1990, California sent the auto industry a clear message: We want cleaner, more efficient cars. Instead of responding with, "OK, we’ll do our best to give you what you want," the auto industry responded with, "No! You’ll buy what we build!" Now, who has the most fuel efficient cars on the road? Japan. Toyota and Honda. Who has the best market share? Japan. Toyota and Honda. Who’s getting spanked (economically, anyway) for their intransigence? Detroit. Chrysler, General Motors, and Ford.

Perhaps a more important question would be: How can Detroit fix this problem? My own, admittedly knee-jerk, reaction is this: Drastic times call for drastic measures. Everybody who is making seven figures or more a year either takes a pay cut down to something a bit more reasonable, or retires... let’s try to avoid the $210 million golden parachutes, too; spending millions giving executives a cushy retirement is not going to help keep the company afloat, much less profitable.

Replace them all with young, energetic, go-getters who have fresh, new ideas... preferably ones who will work for a salary in the low six figures (or less). Look for people who are familiar with what today’s younger market wants, and are passionate about making that kind of car. You’ll probably need to redefine your concept of where the company makes its profit, but those youngsters will have ideas about that, too. Take the money you saved on executive salaries and dump that directly into making efficient cars efficiently. Shorten the R&D cycle as much as possible; focus on making inexpensive, low maintenance cars; learn to be versatile.

You’ll end up with a smaller, nimbler company that can tack with the wind more easily. Better yet, the company will be going the same direction the market is headed, instead of fighting the headwind, as it were. Perhaps you could accomplish the same thing with the Old Guard, but my instincts say otherwise. Should the Old Guard prove me wrong, I will beg their pardon right here on these pages, for all to see.

Whatever you do, don’t lay off the people who are actually making the cars! Then you don’t have a product to sell, and you don’t have people to buy it. That’s just slitting your own throat. No matter how you slice it, the American auto industry must change or it will go under, California laws or no. If any of you have other ideas, chime in! Maybe together we can hash out a plan to Save the American Automobile Industry.

The Floor Is Open.