Is CARB really a four letter word?

Lately in our industry, It seems that the California Air Resources Board is becoming the bane of our existence and from several aspects, they are being referred to as "the California Nanny Club".  However, let me pose this question. Is the new clean air business model, at least temporarily, driving business to us? I would submit to you that it has. The industry has become fragmented, especially in terms truck sales. We have the "old school" vendors that are content to keep doing business as usual, with little consideration to the change in business climate. Most often, these are the vendors that are being most vocal about the changes in environmental regulations that are on the horizon not only for California, but for the entire US. It is become obvious that these vendors are used to being a round peg in a round hole, and have not realized that the hole has changed shape. When a vendor does not change their business model in relation to its current business climate the only recourse they have is to complain and resist that change. I would expect that one of two things will happen to these vendors, either they will eventually, and behind the times, adjust their business model or they will go out of business.


In my daily dealings I have come across many truck dealerships that are being downright hostile to the idea of selling newer collateral that would be compliant, under CARB regulations because they have historically sold older model trucks. I have heard every excuse in the book from claiming that the collateral is too expensive, or that their customer base cannot afford newer equipment. I would retort with one simple question. If your client base can no longer afford to operate under environmental guidelines, why would you still be pandering to market segment that has a limited chance of survival? Our customers must adapt their business models in a similar fashion that we need to if we are to keep an equilibrium in our industry.
If you relate this to the vendors that have been paying very close attention to the required environmental changes, you'll find that most of the progressive companies, those who are able to adapt their business model to their surroundings, are thriving.

I guess this rant boils down to one simple question: Will we as an industry be able to adapt our business model in order to succeed in the new regulated environment?

I would submit to you that I have faith in our business and that we as an industry can and will succeed, that we will adapt these new business pressures and thrive, just like we always have.


By the way, as a footnote, the Los Angeles Transportation Club is holding its annual transportation night event at Knott's Berry Farm, in Southern California, and I would like to extend a personal invitation to each and every one of you. This is a great organization and a great event.

Until tomorrow's rant, keep the.Diet Pepsi handy, and ride the wave!

John