Friday, June 6, 2008

A Change for the Better

Tonight's post is the antithesis to the posts of the last two nights.

I was encouraged to see that one of the major auto makers - Honda - is able to adjust (rather than halt) their production to meet the shift in consumer purchasing trends to a more fuel efficient vehicle from larger SUV's and trucks. The benefit here is obviously that these types of vehicles will be more available, but also that there will be no loss of jobs in the realignment.

In fact, Honda will even create thousands more jobs in the process. I do think that this type of shift is easier for a company like Honda in comparison to companies like the Big Three since there is a large focus in American Auto Manufacturing on larger SUV's and trucks in particular. However, this proves the importance of building a sustainable business model around vehicles that will continuously meet consumer buying habits. This is where the competitive advantage will lie for Local Motors as we and our community will be able to quickly and continuously design, engineer and manufacture vehicles that meet buyer desires since we will have our collective finger on the pulse of what drives consumers to purchase certain vehicles. Thus, we will be able to optimize our business to continuously create classics.

Go Local!

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