Minyanville Staff Op-Ed: Paradigm Shift Only Way to Save Auto Industry?

By Minyanville Staff

Minyanville Dec 22, 2008; Robert McNamara, the legendary Ford (F) president, once came to the startling conclusion that Ford would eventually run out of people to sell cars to (quaintly assuming that each family would need only 1 car). The only way to keep sales high, therefore, was to inspire people to trade up. Still, they only did so once every 3 years.

Radical style changes in the late 1950s did little to disrupt this pattern. McNamara then came up with the brilliant concept of "planned obsolescence." In other words, deliberately make a car that would deteriorate almost immediately. This would force people to buy new cars more often. In addition, by using cheaper, essentially disposable materials, the auto company would make bigger profits.

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