The magic of used bookstores is randomness, and a few weeks ago while scanning the shelves at Half-Price Books, I found an old Lee Iacocca bio for $1.99. I finished it this week, and it’s helped me see those echoes of the 1970s in today’s US automotive sector. 🔌💡🔌🚗 insideevs.com/features/763...
I loved those old GM rally wheels
US OEMs spent much of the 1970s coasting, even as macro headwinds mounted. By decade's end, they were hemorrhaging cash and Chrysler would’ve gone under without a $1.5B federal bailout. Everyone knows the story of “fuel-efficient imports ate Detroit's lunch,” but the full story is more complex.
New EPA regs on pollution controls were expensive to meet; the oil shocks obviously bit hard, with consumer priorities whiplashing from glitz to value. Ballooning interest rates in the Volcker era were the coup de grace for the status quo.
Notably, Iacocca had long been an advocate for smaller, sleeker vehicles akin to Europe’s makes. That’s how he won big for Ford with the Mustang and then the Maverick. AMC offered some domestic pressure in the 60s-70s as well. Chrysler was the Detroit laggard until he took the rein there.
But also notable, Iacocca used his megaphone to complain about EPA regs and Volcker’s interest rate policies…all while proactively restructuring his business to adapt. It put Detroit - and Chrysler in particular - better positioned to compete with the onslaught of Japanese competition.
Today’s parallels are clear. Detroit kicks and screams about EPA regs and California’s EV mandate, but these are the policies that have dragged them forward on global competitiveness. It ensures that, if we are moving into a second “Malaise,” there’s a path to recovery vs. an insurmountable climb.
While we’re tinkering at the edges trying to find ways to keep people buying oversized trucks and producing huge margins for the OEMs, I suspect the gravitational forces of higher interest rates, tariffs (particularly on aluminum + steel), and insurance costs are going to drag down those segments.
The investments OEMs have been making on batteries and electric drivetrains, as well as their more recent seriousness on EV charging infrastructure, ensures they’ll be able to pivot when they run out of runway in the current paradigm. The correction will be painful, but it’s not hopeless.
Anyhow, here’s the book. Looks to be long out of print (and frankly, it’s not amazing), but I’m sure folks can find it used if they look for it.
Thanks for this, lifelong Detroiter who has been marinated in auto culture and happenings all my life- we just take this stuff as background, motor city people have a certain kind of native intelligence about this industry that we take for granted all others know
I am now fascinated by this very particular 80s book cover style
I've found one copy of this book in all my travels to used book sales. His autobiography, on the other hand... 😄
Speaking of whiplash, pretty sure views on immigration are gonna dramatically change if you tell people it’s the only way they’ll get their Social Security check. The Japanese are just about to bend on this issue.
K-Car 2: Electric boogaloo
Would like to hear your thoughts on this
See the rest of my thread 😉
Thread is correct but I’d add this. The US OEMs at this point are benefiting enormously from the US market having a Galapagos syndrome-while also facing being pushed out of world markets.
To say nothing of the elephant in the room of their notoriously poor management, eg poor CAPEX returns, etc. I’m not optimistic about the US OEMs and can see them plausibly going the way of the British auto industry. Positive to tentatively positive on Euro and Asian OEMs.
Agreed. The Chinese electric cars are taking over. So it's a seminal change but this time it could mean the US OEM is facing extinction. ICE cars are on their way out.
I think ICE is on the way out too, but it’s looking plausible it takes a longer time than lots of activists in the policy space appreciate. I feel comfortable saying though we are witnessing a massive shift though.
It's only in the US that ICE cars will hang on. Other countries have already begun the switch to electric. Norway new car sales are 92% electric and China (largest car market in the world) is already at 50% new car sales electric. It's only a matter of time.
This is outstanding!
It's hard to look at these vehicles today and think "they were the saviours of a storied brand that would otherwise have vanished" but they were!
Somewhat related (in a story that you will enjoy) my father had a friend who drove a Dodge Aspen / Plymouth Volaré. I use the slash because (according to my father's first-hand account) one side of the car was badged as the Dodge model, the other as Plymouth. Friend called it the Vaspen / Aspolaré.
Still an old dusty hardback of it in my parents' basement. Never read, lol.
I got to the end of the article before the word "Chinese" appears: 'incredible Chinese EVs like the BYD Seagull prove that charming, affordable transportation is still possible.' Among the 25 cars I've owned, my only US cars were 2 Fords. I'd buy a 'charming' Seagull except the US Govt stops me.
Echos of the 70's aside, I would absolutely drive an electric '72 Riviera.
Yep. I've been in love with the "boattail" for over 50 years (family friends had a banana yellow one back then). A quintessential American land barge. When I saw the original post's photo, I was curious to see if anyone else recognized the car. Glad to see someone else did.
I never read it but that book was everywhere when I was a kid
The biggest difference between 70s and today is that another empire (China) is leading the way in innovative electric cars. I hope you didn’t get paid for this?!
Lol
I thought you were referring to this book, which I found riveting back in the 80's.
They were published around the same time. The autobiography definitely seems to be the one that endured.