Endangered Species?
Friday, June 6th, 2008
Is North America’s love affair with large, gas-guzzling vehicles finally fizzling out? GM suddenly seems to think so, much to the detriment of workers at one of its truck-producing Canadian plants. The story has dominated Canadian airwaves over the past week, rich in the intrigue of corporate betrayal and linked as it is to the media darling of the moment: high oil prices. Old vs. New Economy, Jobs vs. the Environment, Labour vs. Capital- no familiar framing of the issue has been left dormant.
Perhaps the most puzzling aspect of this whole affair is the perception that the North American collapse in truck sales came out of nowhere. You would figure that a major global corporation such as GM would have at least a few strategists looking beyond the next quarter. Sure, trucks are much more profitable to sell than small cars, but even your average layman would be hard pressed not to notice the economic and geo-political storms gathering over the industry. GM should have been all over this years ago, not days ago.
But then again, blaming GM is the easy way out. In recent years, the national governments of North America have been notoriously unwilling to put any real pressure on the automobile industry to clean up its act or reduce the size and fuel consumption of its vehicles. Freedom has meant twenty miles per gallon, and forward-looking energy policy reduced to developing the oil sands in Alberta, and developing them quickly at all cost. It’s not hard to see how car manufacturers could get so complacent in such a permissive and supportive environment. Gaz-guzzling had protection from the very top.
With governments and manufacturers mired in their do-nothing myopia, it’s refreshing to see change come from those so often labelled as least willing to alter their behaviour: the consumer (or as known outside of government and academic circles, ‘normal people’). The consumer, in fact, has been a convenient straw man for interests opposed to any real progress on environmental and energy issues: environmentalism is too expensive, the average consumer isn’t willing to pay for it, the reasoning went. Well, this ‘consumer’ in North America has apparently turned the tables: wasting energy is now expensive, and people are no longer willing (or even able) to pay for it.
North America is built around the automobile, its societies and economies dependent on the gas pump to get anything done. Perhaps this, alongside government complicity, gave GM comfort that its trucks and the like could rule the roads for a while yet. But the error in this logic is that while North Americans can’t go ten minutes without driving, they can easily do so in a vehicle other than a souped-up pickup truck or a Cadillac Escalade. How many SUVs and pickup trucks in your average urban area are necessities to the driver? Probably not many. How many of those drivers could get the exact same utility out of a smaller, more fuel-efficient vehicle? Probably quite a few. It’s strange that ‘utility’ is one of components of the SUV acronym, since to a large proportion of their current owners they are effectively useless. Unlike oil, demand for large vehicles is rather more elastic. The era of the Soccer Mom Monster Truck is likely in its welcome twilight.
At least in North America, that is.
