In the 20th century, the U.S. auto industry led the automotive manufacturing world by perfecting mass production.
In the 21st century, the U.S. auto industry needs to lead the automotive manufacturing world by adopting mass customization.
Mass production is about pushing products through the dealer/retail channel and deeply discounting what doesn’t sell. If you want confirmation of this, look at the chaos in the dealer channel as I write this.
The auto dealers who have lost their franchises with GM and Chrysler are discounting products 40% off list and more, literally dumping them in the retail channel. The discounts will get better for those who can wait a week or 2. They are stealing future business from the dealers who will remain in business for weeks and months to come.
Mass customization is about customers driving (not trying to be cute) demand and pulling products into the channel. It’s about building products for an individual customer within a previously-decided range of options.
Mass customization is about getting people what they want, not forcing them to settle for less than they want.
Mass customization is about being customer-driven, not being “market driven.”
It’s time for a major paradigm shift, not merely rearranging the deck chairs on the Titantic. It’s time of the auto industry to innovate not only products but also to innovate their approach to running their businesses by aligning with mass customization.
As an investor in GM (aren’t all U.S. citizens investors at this point?), we should demand nothing less.
If you want to learn more about mass customization, order my new book, Mass Customization.
What do you think?
David J. Gardner Mass Customization Expert
http://www.mass-customization-expert.com
mass customization blog 
I totally believe and agree with your point of view. Automotive model needs to be renewed. Everybody will win from this (r)evolution to mass-customization even if we need to forget about Ford glorious period (which I understand is not an easy thing for some of us). Believe in the future, were customers need to trust brands and be involved in what they buy.
If you want to explain this point of view in my french blog you are welcome (because we are in the same situation).
Totally agree with you David. The present automotive business model clearly needs to be reinvented from the ground up. And when I say “ground up” – that means the consumer level up. After all, that’s why businesses exist, to deliver products and services designed to fulfill an individual’s needs or desires. The Big 3 have most certainly fallen short in this area; I personally have have never owned vehicle from any of these companies.
I recently had the pleasure of hearing and meeting Jeff Jarvis, author of “What Would Google Do?” He answers the question – What would an automotive company look like if it adopted a Google-type strategy? It goes without saying that it would have an open sourced mass customization model. I’ve blogged about it here:
http://blogs.oneofakindpublishing.com/index.php?/archives/293-What-Would-Google-Do-About-Customization.html
We can only hope for new and innovative thinking from the automotive sector. Bring it on!
Thank you for your comment, Anita. I appreciate the lead the “What Would Google Do?” as well. I’ll add you to my blog roll.
All the best…David
There is no time like the present. I suspect that U.S. auto companies are embroiled in too many tactical issues at this point to look at a more strategic approach to the marketplace. Michael Dell has been pushing them for years to look to a new strategy. Sometimes, out of ashes, comes the opportunity for reinvention. All the best…Dave
Hi Dave –
Did you see this article? It could be the start of mass customization of cars. Note: NOT a US company either!
McLaren 12C gets Customized with Configurator
McLaren Automotive now offers an online Configurator bringing buyers a way to make a fully customized version of next year’s supercar the MP4-12C. The McLaren F1 replacement can now be custom made with colors and options hand picked by the owner on the online interface.
http://www.ibtimes.com/contents/20100623/mclaren-12c-gets-customized-configurator.htm
The problem is that the car is not yet available!
Anita Windisman
Anita…Bentley also has a configurator (http://www.bentleyconfigurator.com/bentleyics.asp?lmodelid=33) for the Bentley GTC Speed and may have them for other models as well. Bentley and McLaren automobiles will continue to be produced under more of a craft production model than a “mass customized” model. It is wonderful that these companies are stepping up and letting customers personalize their vehicles. The lead times are quite long for these hand-crafted marvels, e.g., 6 months after receipt of order. Prices are steep; the GTC Speed is about US$250,000. Will this trend migrate to mass-produced vehicles? Perhaps. Dave Gardner