Ten Reasons the Auto Industry Can be Thankful (Really)

(MoneyWatch)  Top Ten Reasons to be Thankful, U.S. Auto Industry Version:

1. Gas prices are down: According to AAA, the national average for regular unleaded was about $1.85 per gallon on Thanksgiving Day, down from about $3.01 a year earlier. True, it may not last, but just imagine for a moment if it had kept climbing after it hit $4.

2. The election is over, and Obama won: The uncertainty surrounding the national election didn't help sales. Since the election, President Bush and his appointees don't seem to be knocking themselves out to bail out the U.S. auto industry. Congressional Democrats have also taken their licks at the Detroit Big Three, but at least they seem inclined to help.

3. The Baby Boom: Baby Boomers are still around, and on average still in their peak earning years. When the U.S. economy gets back on its feet, they're going to go right back to buying vehicles ?€" slightly fewer vehicles per household, maybe; smaller and more fuel-efficient vehicles instead of SUVs, maybe; but vehicles nevertheless. Just imagine how many convertibles all those future Empty Nesters will buy.

4. Vehicles are still an emotional purchase: OK, this cuts both ways. When consumer morale is down, it hurts. But once somebody gets that special gleam in their eye for a particular brand, a particular make and model, a particular color, they want the keys and they want them now. Beyond a certain point in the process, even people who are supposed to know better become less concerned with how much it costs.

5. Urban and suburban sprawl: Most working households need ?€" really need ?€" automobiles to get to work, to school, and to get around in general. In virtually all metropolitan areas, and even more in rural areas, there's no substitute for the privately owned automobile.

6. Cars don't last forever: Auto industry people don't promote this, but sooner or later, cars break down and need to be replaced. They don't break down as often, and they don't wear out as fast as they used to, but eventually, they need to be replaced. At the same time, fewer people put the time, effort and money into maintaining their cars.

7. In-car electronics: Automakers have a mixed record of success in handling the fact that portable electronic devices progress a lot faster than automobiles. But the car companies are learning to make money off of high-tech devices that can be updated more frequently than the car, like phones, navigation and emergency communication systems. This will help offset the movement to smaller cars.

8. Lithium-ion batteries: Battery-powered cars have been around since the dawn of the Automotive Age, but lead-acid batteries, and more recently nickel-metal-hydride batteries, were not cutting it, in terms of range, size and weight. Lithium-ion batteries run hot, they're expensive and they're not perfect, but they're enough of an improvement to take hybrids to the next level.

9. Import-brand factories in North America: This may seem like a mixed blessing, but in the long run, the spread of auto assembly plants to the South has also spread the political influence of the global auto industry to other U.S. Congressional delegations besides Michigan.

10. Fuel cells: Fuel cells sound like magic. Within the fuel cell, the chemical makeup of a thin film encourages oxygen in the air to react with stored hydrogen, giving off electricity. The electricity recharges a battery, which in turn can power a car. The only tailpipe emission is water. There are a host of problems associated with fuel cells, starting with an infrastructure to deliver hydrogen to ordinary citizens. But in the future, fuel cells will help reduce dependence on imported oil. Some day, consumers will demand them.