Zoomi Life

A non-profit startup called CalCars has a unique proposal to both save the American auto industry and force them to get on board with plug-in vehicle technology. The plan comes from the company that built the first plug-in Prius, which is so far their main claim to fame.

The plan is pretty simple and straightforward: CalCars wants to get 5 million consumers who’re willing to pony up $10,000 as a deposit on an American-made plug-in hybrid to be delivered by 2012 by the automakers. Further, they want the federal government to give $10,000 in tax credits to those who sign up with the CalCars plan. The nitty-gritty details are on the CalCars website, but this simplified model will suffice for our explanation here.

The idea is pretty sound, though getting 5 million Americans in today’s financial climate to fork over $10,000 is kind of dreamy, I think. The tax credit would be nice, but only those who need that kind of tax credit will be interested in paying up the money, which also limits who’ll be willing to do it.

Warning: Political Content!

Personally, I don’t think I’d hand over money to a company whose parent company isn’t even willing to financially back them anymore. Nevermind one that might possibly, maybe make a decent car for me to drive (who knows what the final price tag will be?), but will more than likely build me a pile of crap. In my experience, new American cars tend to work great for the first 50,000 miles (maybe) and then you’ll start spending as much time in the shop as you do on the road. No thanks. I quit buying American cars a long time ago for that very reason.

I think it’s once again become the age of the startup and that new car companies and fresh ideas are what is really needed in this country’s auto industry. I think it’s time for the giants like GM and Ford to finally face up to the fact that they just aren’t viable in today’s world marketplace and it’s time for them to go quietly in the night. This is how markets function: just like nature. Things die, new things grow up in their place.

OK, I’m off the soap box now. I will say that one thing CalCars has going for them is that this isn’t some socialist or fascist “just give them the cash” plan, but a real investment by real consumers into the auto industry based on a contractual agreement. That’s what real free markets are all about.

Sources: 1, 2