Renault

In the Los Angeles Times Dan Neil wrote about kicking Renault in the shin. Regarding the Renault ad that went with his column, let's just say that I am not an electric car fan.

There is something about having a car that communicates with you via the sound of an engine, the way it shifts gears and the way you feel when you get to your destination. If our climate dictates there need only be zero emissions vehicles then so be it. Other technologies exist that makes cars so much cleaner than before. Even today, the cars that use fossil fuels do not impact the environment as we are led to believe.

If you look at the number of cars on your commute that make you close your windows, click recirculate on your a/c or make you get ahead of them, those are the culprits. Rather than legislate some un-Godly CAFE average (which you and I will pay for anyway), let's educate the average person on maintaining their cars to be smog legal, for one thing. This way we can keep buying cars without fear of being harassed because you bought something that gives you pleasure to drive. Leave the politics to the politicians; don't buy something to make a statement. Buy it because you worked hard enough to get what you want and want to enjoy your purchase.

http://www.latimes.com/business/la-fi-ct-neil12-2010jan12,0,4474706.column

Peugeot and Mitsubishi Discuss Deeper Ties

In the New York Times, Matthew Saltmarsh wrote, "PSA Peugeot Citroën on Thursday joined the ranks of global automobile giants gambling that a deeper alliance — in this case with Mitsubishi Motors of Japan — will offer it shelter from the uncertainties surrounding the industry."

With an anticipated merger of two relatively, by world standards, weak companies and the prospect of pooling money, manufacturing and platforms for vehicles, I can see the common benefit. One thing though, if these "weaker" companies combine, who can take the reigns and focus back on what the customer wants?

The article states how Peugeot does not enjoy the "pricing power of the German brands". Mitsubishi is also looked on as having a lower ranking in comparison to Japan's other makes. How do two underperformers merge to become better? How will these economies of scale translate into products the world auto buying market wants?

If you look at the perennial performers in the world markets, the infusion of money into their respective companies via governments has done what? Are they better off now or are the same people who made the decisions to produce vehicles without seeing the financial crisis on the horizon still running their course?

If this merger makes sense for the long term, which is how every business needs to proceed, the makers need to focus on one very important question: "Am I building what I think the consumer wants or what they truly want?"