Tuesday, January 27, 2009

Cash for Clunkers

Here's the latest on the proposed "Cash for Clunkers" program that Congress is trying to pass as part of the economic stimulus package. It recently was turned down under the "Cash for Clunkers" name, but has been reintroduced with a more fancy name in order to push the bill through. It's now being called the “Accelerated Retirement of Inefficient Vehicles Act”...ah our friends on the Hill...such wordsmiths aren't they?!

If you read the attached SEMA alert, you will find that this is a program aimed at using taxpayer money to pay people for turning over their "gas guzzling" vehicles in an effort (a weak, unfounded one at that) to limit pollution and increase new car sales. With payment of only a few thousand dollars, it's hard to say that this will have the affect they're looking for in the sales of new autos. SEMA is also up in arms about this program because it affects the automotive aftermarket and the businesses small and large that supply parts for many of these "clunkers."

However, the bigger issue here in my opinion is of course, if automanufacturers actually made vehicles that consumers value for a lifetime, and possibly even that of their children, they'd never want to get rid of their vehicles. If they felt more of a connection to their vehicle, this program wouldn't be necessary. The other obvious point here is that cars need to be made with more sustainable methods and materials right from the start.

Enter Local Motors for both of these fronts.

To put it simply, our exciting design, paired with our factory build program will address the connection consumers feel to their rides, while the issue of sustainability will be covered by the utility of our vehicles and the materials and manufacturing process we use to make them. When a customer does feel that their vehicle's return is diminishing, due to the model we have established, it will be very easy to refresh the design with a new vinyl wrap, some of the latest accessories from the merchandise shop, maybe even trading in their vehicle's body or some of the components (most likely the composite panels) for a new design, and the old panels can either be chopped up and used as filler reinforcement for new parts, or recycled for other uses.

If consumers "Go Local" there will be no need for a "Cash for Clunkers," excuse me, "Accelerated Retirement of Inefficient Vehicles Act” I mean, needed.

1 comment:

Brian said...

Just got around to reading this, but this is so great. The business and lifestyle model that's been built for LM just makes sense. This is what the world needs for many aspects of their life. Local, sustainable. To see this brought into the vehicular element of our lives is truly exciting!