Friday, June 16, 2006

Toyota is in the House

Toyota has started building houses in Japan. Prefab metal frame modules can be combined and embellished to form many different styles of houses. I'm putting a link to this news item to show that there should be alternatives to excess capacity other than plant-closings and layoffs. Historically, auto plants have been converted to many other uses. The fact that most recent plant closings have resulted in plant shutdowns and idle facilities is evidence that virtually no other industry can command the high labor rates paid by the automakers. It's also evidence of a lack of will and imagination, and to a certain degree, lack of capital at the "Big 3". Frigidaire refrigerators used to be built by General Motors. Philco Ford made televisions.

I can imagine the government paying GM and Ford to build generators for FEMA, fuel cells and solar arrays for the GSA to be installed on federal buildings, pre-fab homes for hurricane victims, water purification systems to be sent to the third world, and government subsidized, retrofitable engines to replace 1% of the cars that emit over 25% of the pollution attributable to automobiles. No, instead the needs go unfilled, people get paid not to work, and the factories stay idle. Oh, well.

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