GM bailout: Good for America, but bad for the world?
Killing the world one car at a time.
A killer business model
A new study finds that private motorized transportation – think America – is exacerbating the problems of “traffic growth, including congestion, health-harming air pollution, accidents, energy insecurity, and climate change.”
For many decades it has been said that ‘what was good for GM was good for America’. In reality, however, hasn’t GM become one of the most dangerous companies in the world?
“These unsustainable patterns of transport are expected to worsen under the continuous and rapid trend of motorisation,” further notes the study.
Ironically, the best thing for GM today is more auto sales, and that isn’t just GM’s hope for America, but in terribly important emerging markets such as China. Quite soon, if not already, the Chinese auto market will be far more important to GM’s long term survival than will be the American market. Sadly, in many respects, mature automakers, such as GM, are training the world to be just like America and almost as “unsustainable.”
A new GM
Without any question, the government bailout of GM was a good move, at least in terms of jobs and short term economic interests.
Long term, however, is not GM – and a good part of the American economy – still fundamentally built upon an “unsustainable” business model? Sure GM is leaner and more competitive today, but has it’s business model really changed very much? Has it really become more sustainable?
Regardless, the key for the world moving forward is for emerging countries to “leapfrog” current models of personal transportation. Yet, is such leapfrogging possible without major contributions from developed countries, such as America? Would this mean that America funds our competition as America becomes less sustainable and competitive?
Today, the keys to sustainability are usually defined by either carbon and/or electrification. Unfortunately, a plethora of research suggests such keys will be very costly to implement, especially in developed countries, particularly in the US. So, it’s hard to imagine the political support for such pathways will last long enough to achieve competitive effectiveness any time soon.
Consequently, it seems much responsibility could ultimately fall into the hands of supranational corporations like GM to become much better corporate citizens of the world. Can that really be a good thing?
