To many, the absolute collapse of the magazine industry in 2009 may seem stunning.  What is stunning to me is that the industry didn’t see it coming and take steps to avert this collapse.  Once again, another industry can only see a year ahead and thinks that a down year – 2008 – would be followed by a flat or up year. Historically in the advertising business that has been the career experience of the senior executives, so why not look to the past for reassurance?

The Big Three auto companies had an insular culture that didn’t pay attention to outside forces.  They only focused on the fact that they could make $1,500-2,000 profit per SUV and pick-up trucks, so they just kept making them hoping – not thinking that is for sure – it would all continue.  We know where that led.

Conde Nast took pride in its’ high level extravagant culture.  Bright and shiny and expensive always worked in the past, so hey, we’ll be ok in the future.   Whoops! It looks like we have to shut down some new and iconic titles as they are no longer viable businesses.

Business Week, one of the iconic business publications of the last half century was sold for $5 million.  Sounds like what was a good revenue week three years ago.  Who bought them?  The well diversified, global, multi-media, multi-revenue stream Bloomberg.  Just think about an on-line and video, global weekly news and feature product called Business Week, served up on consoles and …

“The chances further down the road seem to me better on the fuel-cell side than on the battery-electric side”

There are a number of readers of this blog and members of the audiences when I speak that just seem to think that hydrogen fuel cell autos are a pipe dream that has no chance of becoming a reality in the next decade.  Comments like the quote above provoke a general dismissal as not being realistic.

During the last three years, I have forecast that 2010-2015 would begin the age of the electric automobile and that 2015-2020 would begin the age of the hydrogen fuel cell automobile.  People accept the first part of that forecast but somehow can’t seem to allow themselves to believe that hydrogen fuel cell cars will ever get to scale.  There is no question that scalability is a problem for hydrogen fuel cell technologies.  There are not enough fueling stations to warrant the production of fuel cell autos and there aren’t enough fuel cell autos to warrant the construction of hydrogen fueling stations.  Joseph Heller’s classic “Catch 22″ in full display..

Here and in speeches I have suggested that now is one of those times when the federal government needs to step up and invest in critically needed infrastructure.  In the 1930’s  FDR had the government fund massive projects that created the hydro-electric industry in the U.S.  In the 1950s Eisenhower signed the Interstate Highway bill, creating the national highway system that we all rely for personal transport and the …

In the last column we looked at the general dynamics underlying the reality and need to create an automotive industry in the U.S for the 21st century. We now take a look at what this industry might look like. An analysis of trends, developing technologies and the role that the federal government can and should play, makes it is clear that this industry will be substantially different than that of the 20th century.

At the beginning of the 20th century there were dozens of car companies.  The story of the last century is one of consolidation so that by the 1990s there were only the Big Three and a few foreign companies producing vehicles in the U.S.  These companies from the last century will continue as the scale part of the business for the next 5-10 years.  They will be joined by smaller, more nimble companies that will bring innovation to the marketplace.  Tesla and Aptera, mentioned in the last column are just two examples.  There is a real possibility that there will be dozens of companies by 2015.  The new companies will not provide scale, at least initially, but they will lead the market with innovation.  Some companies may produce hundreds of vehicles, others thousands, others tens of thousands.  These companies will successfully compete with the big companies on the playing field of innovation.

Clearly the cars produced in the next 10-15 years will be generally smaller, much more fuel efficient and will use less and less gasoline.  The first stage …

Cuba

It is about time!   The first steps that President Obama took recently to open up the U.S. policy towards Cuba are long overdue.  It has been clear to me for the past 15 years that the Federal Government’s policy on Cuba, instituted 50 years ago is a worn out relic of the Cold War era.

In the second half of the 20th century, at least until the collapse of the Soviet Union in the early 1990s, Americans were raised and educated that the bad guys were communists and that these communists threatened the way of life of the country and all that wanted freedom.  Well, for several decades that might have been true, but those times are long gone.  When the Berlin Wall came down in 1989 and the Soviet Union collapsed in the four years that followed, the eastern block collapsed and the global economy began.  The number of potential consumers of the capitalistic way of live basically doubled.  This led to economic upheavals that transformed China, Russia, South East Asia and Eastern Europe.  It was generally accepted that the U.S. and the West, had won.

The world is getting ever more interrelated in all areas economic.  It is getting ever more connected electronically.  It is starting to realize that there are global problems that face us all.  In such a new world, the idea that Cuba is a threat to the U.S, that Cuba is subversive is ridiculous.   What could Cuba possibly do to the U.S?  Let’s see, provide the …

The discussion about bailing out the Big Three has been couched in terms that imply that the Big Three represent the complete future of the automotive business in the U.S.  As I have suggested, if they are to be bailed out they should be given money based upon measurable metrics.  I have also suggested that they represent thinking from the 20th century, the century of the internal combustion engine, which is not the future of automotive transportation this century.

I am for providing help for the Big Three assuming they come up with an intelligent plan for spending tax payer money. As stated in a prior column any such plan would include rapid conversion to selling a fleet that has an average 45 mpg and the developing of electric plug-in vehicles. What I would like to suggest is that if there is some $25 billion on the table, that the American taxpayer be given either alternative or additional ways to invest for America’s automotive future.

As I said in a prior column, at the beginning of the 20th century there were dozens of car companies and by the end there were three standing.  That is a good metaphor for what is going in the electric car business today.  There are numerous small companies that manufacturing electric cars, converting internal combustion engine cars to also run on battery power and many other companies working flat out to create new types of batteries that might power our cars in the …