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When the local telephone system got deregulated, one of the things that got built into the requirements was open access. I'm not going to bore you with CLECs or unbundled network element loops; the important part of the deal was this. If one network wanted to come in and compete in an area, the network that owned the local lines had to let the use the existing infrastructure at competitive rates. They can't prioritize their own traffic, or force them to build their own lines, or simply lock them out altogether. In other words, in order to promote competition, we actually allow small companies to compete with large ones on fairly equal footing.

What if a similar provision were implemented for the auto industry? Right now, the Big Three have an AWFUL lot of resources going to waste. And, there are several tech startups right now that are TRYING to make new tech cars, but are finding, surprisingly, that making a car is a fairly difficult endeavor.

So what if one of the requirements of the bailout is that the Big Three, rather than reducing their capacity, are required instead to provide resources to startup auto makers at a flat/reasonable fee? Rather than laying off engineers and closing plants, someone like Tesla motors could pay Ford to have Ford engineers work on the parts of the car Tesla was having a hard time with, and then retool a plant to manufacture Tesla cars. (Tesla makes electric sports cars; they've got an advanced electric motor and drive train, but Tesla had a very hard time getting the gearing working. That strikes me as something that Ford would probably be quite good at.) Right now Tesla Roadsters are being made at a Lotus plant in Wales, while American companies are near to closing shop. Tesla is an American company. This seems like a dumb situation.

I'm not claiming that this would be a panacea. Tesla has managed to make slightly more than 200 cars in two years of production; hardly enough to keep GM in business. But the thing is, once resources exist, people learn how to use them. Right now, if I have a brilliant idea for a new car, what can I do? Starting a new car company is five or ten orders of magnitude more complex than most start-ups. But if I know that all I need is a design and financing, after which I'll be able to pay someone who already owns a factory to help me make it (rather than making a deal which might require giving up the rights to my design, or having to make my own factory) I'm much more likely to give that idea a go, rather than tossing it in the bin.

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