Sales Are Up

Automobile sales are down across the markct. But Toyota and Honda are gaining market share in tough economic times. Over all auto sales are down 14.5% compared to June one year ago. Because of Prius sales Toyota’s sales are down 11.4%. Honda’s Insight has held them up to only a 7.1% decrease in sales. The point is that while many manufacturers continued to invest SUV’s because of the high margins they failed to make inroads into the hybrid market. The challenge for struggling auto makers is now to make investments when cash is tight maybe even nonexistent.

Here we go into a new green economy. For those who say that moving to an economy that emphasizes the changes that will preserve the environment, I say look at the companies  that are surviving in the most challenging environment in 80 years. Our present situation  will reward those that are willing to make drastic change. The challenge is choosing the right emerging technology. But those that stick there heads in the sand are bound to fail.

Nestle Nespresso has committed to sourcing 80% of its coffee from sustainable farms by the year 2013. This is a great announcement. Nespresso is the premium coffee capsule division of Nestle. This commitment means they will double the present percentage of 40%. Nestle has instituted the AAA Sustainable Quality Program. The focus is on quality while balancing economic, social and environmental factors. Over 4500 Central American farmers benefit from this program.

The amazing part is that the Nespresso system has not penetrated the American market significantly. The over all benefits of the program will expand as the volume of sales increases. This is a program that can benefit all. The farmers, the workers, the consumer and the company. The next time we hear that the economy can’t bear the costs of going green we can use this as a shining example of green economic success.

The new economy is going to bring about change.  We can argue about the causes of the economic collapse. We can blame banks for bad credit decisions, we can blame consumers for over spending, we can blame oil companies for driving the economy to the edge by hiking gas prices while making unprecedented profits, we can blame auto makers for being inefficient and out of touch with the marketplace. But in the end we are living in new economic environment. Changes are going to occur and we can either see them as positive or negative. To take it another step we can either see the oncoming changes as opportunities or the demise of the present.

If you believe that a green economy is the wave of the future now is the time to seize the opportunity. One example was made very clear in a blog published by Robert Ludvig as he states on March 15, “The survival of the auto industry is dependent on the the sale of cars run by electricity. The auto industry either fully adapts and creates automobiles that satisfy the needs of the green era or they perish.”www.futureofbusiness.info/ The message is simple. But depending on your attitude you can see this a threat to the norm or an opportunity knocking.

Robert J. Samuelson says in a op ed piece in the Washington Post on April 27 “Re-engineering the world energy system seems an almost impossible undertaking.” www.washingtonpost.com/wp-dyn/content/article/2009/04/26/AR2009042601515.html I know this an overused reference but so did landing on the moon in in 1961. But with a commitment from a President and a sense opportunities to be won we were on the moon in less than ten years. The difference between now and then is that we must make these changes in order for our planet to have a long term plan of survival. Mr. Samuelson then goes on to make an argument for not committing CO2 limits because they are unachievable. I go back to a Henry Ford quote, ” Whether you think you can, or that you can’t, you are usually right.”

The situation today requires an even deeper comittment. We “must” make changes and the current economic conditions should not be seen as impediment to change but as the launching pad for new opportunites in the battle for our planets survival.