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As comfort items, mechanical innovations and safety devices have been, and continue to be, developed and introduced; each can be, and should have been, made available in the free market - as customer choice options.

For example, how many new car buyers would not opt for disc brakes? How about air conditioning; or, automatic transmissions? What about all-wheel or four-wheel drive -- there is a difference?

Many of these items were added to every car as the result of government mandates; thus, raising unit manufacturing costs and the base price of every vehicle to citizens.

That interferes with both manufacturer choice and buyer choice with respect to options offered and option selection.

Next, auto companies took a page out of the government playbook, adding accessories by manufacturer fiat in order to further inflate the delivered base price of vehicles to each customer.

Both are manipulations that have squeezed Americans when making a purchase.

Should a customer finance or lease the vehicle, the transactional cost to them is even higher. That's due, obviously, to typical carrying costs; but, is further inflated by the base price manipulations noted here.

What should auto companies do?

Implement the 'Henry Ford Way'.

Henry Ford's commitment was to constantly reduce the price of each vehicle. That was the core objective of his market strategy. In order to make that possible, his internal operating strategy was focused on cost reduction through consistent streamlining of production, process improvement, and innovation, while providing strong yet appropriate wages for workers. He was a focused and fair business leader. As a result, Henry Ford accomplished all those goals and his company achieved 60 percent of the industry marketplace over ensuing years.

In a paragraph, what you just read is the outline for automobile industry reform. The 'Henry Ford Way' encompasses company business strategy, manufacturing operations requirements, market analysis, management effectiveness, and ultimately, the only acceptable measure of success - market viability.

The question this begs, of course, is why weren't recent and current officials at GM and Chrysler able to do the same - or, at least, much better during recent years?

The excuses are many; but, they are still excuses. Expect more at post-bankruptcy Chrysler and GM.

Most Americans do not want small cars and will not purchase them. That is why still more coercive government actions are coming if the people do not change the paradigm of government issuing vehicle mandates and oust the political interveners.

Henry Ford understood how to serve free people making free choices in free markets.

Doing it the 'Henry Ford Way' will reform the auto industry, save jobs for Americans, and payback the taxpayer funded bailouts.

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Richard Olivastro is president of Olivastro Communications - an executive leadership development company - a professional member of the National Speakers Association, and founder of Citizens For Change.

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Note -- The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA.

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