American Autos Take It in the Shorts Again

The American automobile industry is taking it in the shorts again. According to the New York Times, Nissan plans to sell an electric car in the United States and Japan by 2010, "raising the stakes in the race to develop environmentally friendly vehicles." If successful, Nissan will be the first to bring a zero-emission vehicle to the American market.

Once again, Detroit's leadership is behind the 8 Ball. What's going on? Nearly everyone in the world of engineering and business recognized in the '70s that the electric car would at some point in time be a reality and a necessity. Knowing that, why and how does Japan beat Detroit in nearly every phase of automobile innovation that is based not on meeting current consumer wants but on future consumer needs, which when those innovations turn into cars represent both consumer wants and needs?

Both had to wait for the technology to catch up with the idea. So why will Nissan be first to market electric cars worldwide? And does it matter in the long run. If history teaches us anything in manufacturing of cars, being first with the next big innovation can be critical for success, especially in this case, with oil at $120 a barrel.

In an interview with the Times, Nissan’s chief executive, Carlos Ghosn, says: "Nissan decided to accelerate development of battery-powered vehicles because of high gasoline prices and environmental concerns, not just because of the need to meet stricter fuel-economy standards.

“What we are seeing is that the shifts coming from the markets are more powerful than what regulators are doing,” he said.

You think? Oh, and by the way, America is supposed to excel in understanding, projecting and meeting the market's demands. Apparently not so in Detroit. Or in much of American manufacturing.

Yes, it's true that General Motors is working on a battery-powered car with a small gasoline engine for recharging and plans to start producing the Chevrolet Volt in 2010. But that is a far cry from Nissan's plans to sell all-electric vehicles worldwide.

Here are my frustrations:

1. I am a proud American and a world citizen who believes in trade and competition. But how can Americans compete in manufacturing if we constantly fail the tests of innovation and creativity?
2. Why are big U.S. manufacturers seemingly so slow to change their operations so that they can remain competitive in the world marketplace?
3. Is there something about our business cultures that stifles creativity and innovation?
4. Is it simply a matter of economics?

Is this the final nail in Detroit's coffin? Should GM and Ford continue to exist? Do Americans or the world need them? If they went away tomorrow, would they be missed?