Apparently there is this argument that big SUV’s and big trucks are a major profit maker, especially for the big 3 in Detroit. Now I will be the first to admit that earlier in the decade this was an absolute truth. Somewhere around 2003, everything was about bigger and better. While it was true 6 years ago, time tends to change everything. This has obviously in these past couple of years proven to be false due to the economic downturn and almost entire halt of the lucrative Big Truck market. Increasing concern for the environment, and to be quite honest, practicality in regards to the price of gasoline has driven this argument into obscurity. However, if there was any doubt in your mind about this, there was a study released from the University of Michigan Transportation Research Institute that basically confirms what I just said. They insist that the Detroit 3 would be more likely in increase their profits, and less likely to lose money if they geared their production to meet fuel efficiency standards that far exceed future government regulations. This isn’t a new concept: the idea of making a prediction based on a trend, and making decisions that will bring success in the future. Honestly, I can’t say whether or not these auto companies have made the necessary changes (only time will tell us I suppose), but it does force me to beg the question, Why didn’t they respond to people’s warning that this economic downturn would occur years ago? The study also sheds light on this by adding that for these companies to become viable again in the future, they are advised to replace existing management teams. Sounds smart to me, replace the people who refused to listen to THEIR OWN researchers for THREE DECADES.

In other news today, Japan is seeing a restructuring of its major auto companies’ leadership. Toyota announced today that the current president is stepping down and being replaced by the grandson of the company’s founder. Toyota claims that the company will strive to remain economically viable in the future by weeding out production of oversized cars, and focusing on their production of smaller more fuel efficient vehicles. Sound familiar?

On top of Toyota’s announcement, the ONLY Japanese automaker to actually post profit during this recession, Honda, has announced that they are replacing THEIR president. It just goes to show, if you are a higher-up in the auto industry, don’t count on the success of your company to be an indicator of the safety of your job. (ouch.) That’s all for now..