Smart idea

CBC interviewed a Canadian businessman with a sharp idea. Canada should have its own car company. It would help to give the nation a commercial purpose, a source of pride. There’s no technical or physical reason why not. Canadian car factories are still as active as ever, and Canada has steel producers and most other suppliers. A new company could call on existing talent for factory design, car design and tooling, and could buy from existing suppliers.

The difference is closed loop vs open loop. Before 1965, as I’ve pointed out thousands of times, Canadian car factories were building cars FOR CANADIANS. Workers were proud of their achievements. US factories were building cars FOR AMERICANS. Each nation could alter its models, or pick the combinations of models and engines, to suit its OWN customers. Now the finished product moves both ways without any distinction, requiring all products to be STANDARDIZED.

If you want creativity and variety you MUST have modularity. You MUST have closed loops of business within each nation or entity.

Profit works as a feedback mechanism when the loop is closed. Open-loop systems have no feedback and must be constantly controlled from above.