Expect Ford to step on the gas in India

Ford, the iconic American car company that symbolised consumer utopia by mass manufacturing vehicles for the common man early in the 20th century has hit another massive speed breaker with a fourth quarter loss of 5.8 billion dollars and an annual loss of 12.7 billion dollars for 2006 (reports Reuters).

This is, according to the agency, the worst year in the 103-year history of the company. Last year, heavy job cuts sounded the alarm that Ford is running out of fuel (as the auto industry generally is bound to be in the developed world).

The question that should interest us Indians is the response from loss-ridden international automakers to the emerging scenario of global warming, costlier fuel and supply lines that are linked to the vagaries of geopolitics and the general unsustainability of motorisation in the developing world, of which China and India are the prime examples.

It is fairly certain that the losing carmakers will compete more aggressively in the developing markets; price cuts, cheaper (and unsafe) models, petrol/diesel guzzlers, higher emission engines and a tacit campaign against public transport are all being witnessed even today; we will see more of it.

The positive feature is that the frenzy of car sales has a GLOBAL climate impact, which is likely to send more Katrinas hammering the US coastline, as much as the typhoons in South East Asia and the seemingly unending monsoon downpour in Mumbai, all of these being very lethal weather phenomena.

If Indians are concerned about the future of the planet, and, that of their children, they should persuade the Manmohan-Chidambaram-Ahluwalia caucus against encouraging fuel-guzzlers from hitting Indian roads, whether they are from loss-ridden Ford, Chevrolet, Skoda, Hyundai, Suzuki, Toyota, Mercedes, Tata...

We need cheaper, modern buses that are rolled out on Indian roads by the tens of thousands each month. Why, if cars can be imported and sold (to supplement domestic manufacture), why not buses? And trains? and trams?

If the automakers are going to try to press the pedal further, we may have nowhere to run for cover.

Let us remember what Andre Gorz said long ago. It is simply impossible for everyone to want to buy a part of the beach, because that would give each person a few inches of beachfront; that cannot be used by the owner in any practical way. Ditto for the car. If all of us had a car each, none of us would be able to use them!