This news, about GM and Chrysler cooperating to create their own Hybrid Cars, is an interesting development. Both companies announced their SUVs would be using the Hybrid engine in 2007. Why only mention the SUVs and not other kinds of automobiles?
True, the SUV is a gas-guzzler that could use hybridization. But, really, I think they singled it out because of the slump in SUV sales. With gas prices so high, consumers aren’t buying cars with low fuel-efficiency. So now, auto-makers are moving to put SUVs back on top. But a hybrid sedan would still be more fuel-efficient than a hybrid SUV.
Companies should not worry about reestablishing the glory of former top-sellers. They should look to the present and what’s hitting big now. If a company’s strategies are formed by the past, their bolder competitors will pass them by as they head toward the future.
Is it a risk to recapture past success, rather than moving forward?