Jeff Jarvis Is Spinning His Wheels

By Matthew DeBord

Posted Monday, June 8, 2009 - 1:53pm

At his BuzzMachine blog, media provocateur Jeff Jarvis has this to say about the General Motors bankruptcy and the future of the auto industry:

“GM says it is reinventing itself. And what makes them or the government think they can do that on top of old infrastructure and old ways even with our billions? Good fucking luck.

“Last week, I met the man who is really reinventing the car industry, Jay Rogers, founder of Local Motors. He is creating the platform and API for new cars that are designed collaboratively by communities and built in microfactories across the country by staffs of only 41 using almost entirely off-the-shelf parts. He says he will be profitable selling only 500 cars. He plans to build 3-5,000 of each model and he’s months away from delivering his first.

“When I first looked at Local-Motors, I didn’t think it was for me. Its first model is a muscle car being built in and for the Arizona market. In a video, Rogers talks about being able to come into the microfactory to help build your own car. I try everything I can to avoid ever opening a hood or picking up a wrench. That’s why I buy Toyota.”

First off, I hope Jarvis doesn’t frequent self-serve gas stations, otherwise he’s going to find himself with under-inflated tires or a fluids crisis. One of the biggest problems in automotive culture right now is that fewer and fewer people know how to handle a dipstick (and the OEMs aren’t helping by insisting that everyone rely on neurotic onboard diagnostic systems).

But I digress. What’s really of concern here, besides the needless profanity (I know this is Jarvis’ thing, but it doesn’t help his case), is that he’s touted as a radical new approach to carmaking something that’s been going on pretty much since the automobile was created. True, Local Motors has codified a process and developed a business model, but in practice it’s not that different from what hot-rodders, kit-builders, and customizers have been doing forever. Ergo, the muscle car, a natural outlet for this sensibility.

What’s different is the degree to which this familiar small industry has been Jarvisized. It’s Tom Freidman plus showy confrontationalism, slathered with the sort of Web 2.0 memes that have lately begun to befoul the discourse about where our manufacturing culture is headed. The car of the future will not be made thing—it will instead be the fulfillment of an idea about how things should be made.

You encounter this stuff all the time in the design world, where designers increasingly reverse-engineer products from assorted trendy ideologies rather than from more practical economic and behavioral data (they receive no education in economics at design schools, so it’s no surprise). For Jarvis, the imperative is to recast the car of the future as an open-source automotive Kumbaya, governed by the same allegedly egalitarian principles that motivate Google. Local Motors, naturally, does no evil. GM on the other hand, is assumed to have done nothing but.

There’s a reason why the kit market for cars remains tiny relative to giant global automakers, and why the auto industry has historical favored macro over micro: you get a better product in the end. If Local Motors ever tried to scale to the point where is cars would replace even a fraction of the market, its business model would be exposed to well-understood economic phenomena. Their product now costs $50,000. Without standardization of components and semi-automated assembly lines, not to mention substantial design revision, it would never be able to enter the realm of affordability for most people. Contrast this with the conventionally produced Tata Nano, now scheduled to arrive in the U.S. in a few years, at a cost of (possibly) less than $3,000. Now decide what’s really the car of the future.

And just for the record, Henry Ford figured this out almost 100 years ago.

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Matthew DeBord has written about the auto industry for the Washington Post, the New York Times, the Los Angeles Times, and the Huffington Post. Follow him on Twitter.

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Re: Spinning Wheels

Henry Ford's market of car buyers at the advent of car making is vastly different than the niche market of Local Motors enthusiasts; a lot can change in 100 years. Enthusiasts want excitement, and a participatory experience. They have thoughts to contribute, and they want to understand their cars inside and out. Ford's contribution to the auto industry was incredible; he made cars affordable for nearly everyone. Now Tata is doing the same for developing countries and on top of that, will bring the least expensive car ever to our country. It's awesome. It is also a completely different contribution than what Local Motors aims to do. I think we will find many companies bring something unique to our new automotive economy; and Local Motors is simply among them. Local Motors enables car lovers to have the cars they want, where they want, when they want. Simple. There are still people who want more than a cheap ride: they want excitement because they LOVE cars. This is what we aim to bring to the table: an exciting, personal experience for car enthusiasts in regional areas. General Motors has earned its reputation recently, but they have done a LOT of good for the industry. Alfred Sloan was among the first to really bring PASSION to cars. Where Henry Ford made them standard, made them affordable, Sloan made them exciting. For all of you who love cars, you have GM and Sloan to blame; at least in part. I grew up with General Motors as I lived right outside Flint, Michigan. I will not pretend to condone the General Motors of recent years, but I do wish they had succeeded. Perhaps they will pull through still. It is easy to see why a company like Local Motors would be considered opposite of GM: we are small, they are big. We are open in our processes, they are private. We focus on personal, regional design, they focus on the masses. The list goes on. But I think Jarvis' point is that GM's way of doing business is simply not as sustainable as it could be: they are building cars people don't want. I know this because people aren't buying them. That is not a sustainable business practice. I do hope General Motors changes the way they do business so they can become more sustainable, and perhaps bring jobs back to Flint. But then, if GM doesn't do this, there are new, up-and-coming car companies that will. Ariel aferreira@local-motors.com

Ariel: Thanks for your

Ariel: Thanks for your comment. And for take on GM/Sloan and your company's mission. I take issue with only one aspect of what you're saying, which is that GM is building cars that people don't want. I don't think that's entirely true. People want Chevy Silverados. In China, people want Buicks. They're built cars people want in the past, and made money doing it.

You're Right

I should not have spoken so broadly when I said "people aren't buying GM cars". I can't find specific sales info on GM sales per brand right now - everything seems to be on lock down since the bankruptcy filing. If I'm not mistaking, GM owns 7-8 brands, and has over 40 vehicles in production. You are right that Some Chevy, GMC & Buick brands are individually profitable. If we were able to review the GM portfolio on a per-brand basis I think we would find that this is not the case for all brands, or for each vehicle. If it were, they would not be in the situation they are today. But changes are being made! The auto industry is transforming, and so is General Motors. Thanks for your quick response. Ariel aferreira@local-motors.com @LM_Ari

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