The Future of Transportation

Today GM officially becomes Government Motors, owned 60-70% by the Government (that's you and me) and 30% by the UAW. The bondholders can be found under the wheels of the shiny, new bus.

Since the government now owns two auto companies, it probably needs to come up with a catchy new name for the conglomerate. In England, they called it British Leyland. In the end, it didn't work out.

Romania also had a government automaker, Dacia, rhymes with gotcha. There is an article in the Wall St. Journal from Ion Pacepa, who founded and ran the company for a while about how this turned out, along with some interesting commentary from Nicolae Ceausescu suggesting what he actually thought of the average Romanian.

My job at the time was as head of the Romanian industrial espionage program. Ceausescu tasked me to mediate the purchase of a minimum, basic license for a small car from a major Western manufacturer, and then to steal everything else needed to produce the car.

Three Western companies competed for the honor. Ceausescu decided on Renault, because it was owned by the French government (all Soviet bloc rulers distrusted private companies). We ended up with a license for an antiquated and about-to-be-discontinued Renault-12 car, because it was the cheapest. "Good enough for the idiots," Ceausescu decided, showing what he thought of the Romanian people. He baptized the car Dacia, to commemorate Romania's 2,000-year history going back to Dacia Felix, as the ancient Romans called that part of the world. In that government-run economy, symbolism was the most important consideration, especially when it came to things in short supply (such as food).

"Too luxurious for the idiots," Ceausescu decreed when he saw the first Dacia car made in Romania. Immediately, the radio, right side mirror and backseat heating were dropped. Other "unnecessary luxuries" were soon eliminated by the bureaucrats and their workers' union that were running the factory. The car that finally hit the market was a stripped-down version of the old, stripped-down Renault 12. "Perfect for the idiots," Ceausescu approved. Indeed, the Romanian people, who had never before had any car, came to cherish the Dacia.

In an article I saw back in the early 80s, the Canadian importer spoke to the wonders of the Dacia. When they arrived in Canada, and were off loaded from the boat, about 30% of the brand new vehicles failed to complete the short drive to the dealership. To keep things simple and cheap, all Dacias used a common key, which resembled a nail with a handle. The author mentioned that he never removed the key from his own personal car, hoping someone would steal it. No one ever did.

Gives you a warm feeling for the upcoming new models, doesn't it? Imagine the Pelosi GT, a licensed version of the Smart car, but stretched 6 inches to allow for installation of a rear seat. Or the Reid GTI (the I stands for India), a Chrysler-built knockoff of the Tata Nano, somewhat more spacious than the Pelosi, but more economical, with the Tata 650cc engine. Available as soon as 1500 lbs of air bags, and roll cage can be worked into the design.

Traditional SUVs will continue to be produced, but will only be available to government employees with a demonstrated need to seat themselves, two personal assistants, and storage space for their egos.