Out of box ideas for Big 3 – Strategist view

American auto industry in the brink of collapse and Deutsche bank slashed the GM target price to zero. Big three (Chrysler, Ford, General Motors) actively looking for government aid and president elect is committed even before election to assist to maintain the American iconic auto industry.  All big three need immediate cash to survive but need products and customers to sustain. They will survive for now if government provides assistance, will they sustain?

Here are my out of the box sustainability ideas to keep the icons alive:

  • Ask U.S Government to provide defense contracts to manufacture big trucks, small trucks & jeep
  • Send the highly paid sales VPs to meet the defense ministers of countries like Israel, Saudi Arabia, Finland, Norway and etc to get defense contracts to manufacture trucks and jeeps
  • Big three should collaboratively compete. Follow Nash equilibrium. Let Chrysler only make minivan & jeep, Ford only make truck and GM only make SUV & Sedan.
  • Ask U.S government to subsidize gas price for next 2 years. That is the price of gas will be fixed as $1.50 for next 2-3 years.
  • Establish American Auto Research firm (like Routeone) with the goal of producing a blue print to manufacture 80 miles per gallon car in 2 years. (WE CAN DO IT!! YES, WE CAN DO IT) Hire a quantum physicist as the CEO of AAR.  The guy who understands quantum can do anything!!
  • Change the culture. I heard, group of highly paid employees work really hard on a presentation for weeks (sometime months) to present and please a small set of executives. Cut the crap and ask everyone to relate their work to bottom line. Ask employees NOT to do a task if it does not directly relate to customer, product, cost, revenue and quality. Need strategic minded ,practical leaders deployed across to transform each division in each company
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