Conscious Choice: Taking on Detroit

December 2002

Taking on Detroit

The world's largest Chevy dealer wants the car industry to clean up its act

by Jim Slama

Based on recent EPA gas mileage rankings, you might think the auto industry lives by the mantra: Gas Hogs Rule. Average fuel efficiency has plummeted in recent years in part because Detroit-based automakers — General Motors, Chrysler, and Ford — keep pumping out SUVs, big trucks, and other environmental disasters like the Hummer in record numbers.

Because profitability rules in the auto business, industry pushes models that add most to the bottom line. The economic reality means that the bigger and more expensive vehicles contribute more dollars to company coffers. Recently, profits have been pretty substantial. In the past four years the industry has sold more cars than at any time in history.

Unfortunately, Mother Nature is paying dearly for the Big Three’s windfall. Auto emissions are a major cause of unhealthy air pollution levels that have contributed to substantial increases in asthma and other respiratory problems. And the relationship between gas hogs and global warming is clearly linked. Moreover, auto manufacturers have successfully fought recent attempts to raise federal mileage standards, despite the fact that current technology could nearly double car efficiency — if it was utilized.

As a result of these factors, the auto industry has its share of detractors. Chicago is home to the auto industry’s most unlikely critic...mainly because he is also one of its most successful auto dealers. Chuck Frank, president of "Z" Frank Chevrolet on Chicago’s north side has teamed up with the Sierra Club in recent years to prod automakers into building more efficient vehicles. Thus far Detroit hasn’t budged an inch, but Frank and the Sierra Club have just begun.

The Genesis of Activism

At an early age Chuck Frank became part of the family business, going to the dealership with his parents and assisting however he could. The relationship became more formal in high school when he took his first real job in the parts department. The Frank family has been selling cars for 66 years and in the past 20 years alone they have sold over a million Chevrolets.

Simultaneously Frank’s father also helped him develop a strong relationship with the outdoors. On family trips to Sun Valley, Idaho they would hike, ride horses, and fish. At the age of nine he went to summer camp and found a new passion. "Sleeping under the stars was awe-inspiring," Frank says. "It helped me truly understand the human connection to the natural world."

In college his interest in the environment grew as he became an avid hiker and photographer. Yet he couldn’t resist the pull of the business world. His brother and father encouraged him to pursue business training, a path that took him to the University of Chicago where he earned an MBA. Upon graduation Frank came back to work at the dealership, where he eventually rose to become president. During his tenure, "Z" Frank has sold more Chevy’s than any other American dealer.

Over the same period, Frank became increasingly active with the Sierra Club. Initially he was attracted most by their wilderness trips. Later his focus was to provide financial support and get involved as an activist. "Human behavior is threatening nature at a massive scale," he says. "I had to get involved at a deeper level." This commitment intensified as he was forced to deal with his wife’s asthma, which is aggravated by dirty air.

Frank is also concerned that his industry has shirked its responsibility as corporate citizens. "Automakers have opposed nearly every initiative that could make cars safer or help the environment," he says. "They are like the boy who cries wolf, always bringing out experts to show that any proposed changes will jeopardize the automakers and cost jobs. Yet history shows that things like seat belts, air bags, and catalytic converters have provided major social benefits with little or no harm to the industry."

An Industry Gadfly

Earlier this year, Frank gained firsthand knowledge about the Big Three’s clout and tactics to get what they want. He volunteered to lobby for the Sierra Club in their effort to improve car mileage by passing a new Corporate Average Fuel Economy (CAFE) standard. The first CAFE was passed in 1975 (under Republican president Gerald Ford) and was a shining example of good politics. It forced automakers to double fuel economy and, according to the Sierra Club, the CAFE standard dropped U.S. oil consumption by three million barrels a day.

As part of his effort, Frank sent letters to all U.S. senators asking for their support, stating that, "Cars, SUVs and other light trucks now consume eight million barrels of oil every day and account for 20 percent of global warming emissions. High demand for oil also increases the pressure to drill in areas that should be left unspoiled. Raising fuel economy standards will save oil and slash global warming pollution."

In addition, he personally went to Washington and lobbied members of Congress to vote for an increase in CAFE standards. "Chuck is so credible in this kind of situation," says Chicago environmentalist and civic leader Rand Sparling, who accompanied Frank in his D.C. rounds. "He is focused, well prepared, and has the facts on his side. It’s hard for industry to refute his arguments."

Ultimately the auto industry’s massive lobbying machine won out by a resounding 62 to 38 vote in the Senate. "It was very disappointing," says Frank. "Industry used some highly questionable tactics in this case. I was most upset by the manner in which they distorted the facts to the public and dealers to gain support. The worst example was an ad in western states that warned people that this law would take away their pick-up trucks."

In some ways the loss energized the Sierra Club, which responded by creating a new campaign to get Detroit to produce cleaner cars. Last June the organization rolled out a three-year effort to encourage automakers to utilize current technologies to dramatically increase mileage. "We have launched a campaign to convince Detroit to free us from foreign oil dependence, cut pollution, and save money on gas," says Dan Becker, director of Sierra Club’s global warming and energy program. "The club’s‘Freedom Option Package,’ is a set of fuel saving technologies that can be added to most cars to dramatically increase fuel efficiency." (See sidebar for details.)

The campaign was launched with a press conference at Detroit’s Cobo Hall, home of the industry’s showcase North American International Auto Show. Chuck Frank was a leading spokesperson for the club at the event. "It showed a lot of guts for Chuck to walk into the belly of the beast and criticize automakers," says Dan Becker. "It definitely got the industries’ attention."

In the long run, a focus on modernizing auto technology, rather than trying to beat the Big Three into submission to meet CAFE standards, may be the most effective approach. "Manufacturers have developed some great technology that can be implemented in the very near future," says Frank. "If they hear from consumers that they are willing to pay a little bit more for their cars in exchange for saving a lot on their gasoline bills, I think these changes will be implemented soon."

Competition from Japan could also play a key role in pushing the American automakers to become more responsible. "Detroit needs to realize that it’s auto mechanics, not rocket science," says Becker. "Honda and Toyota are leading the pack in implementing green technologies in their cars. If the Big Three aren’t careful they are going to face the same situation they did in the 1970s when efficient Japanese cars came into the United States and took a significant portion of the market share from American gas guzzlers."

Honda’s electric/gas hybrid was given the Sierra Club Award for Excellence in Environmental Design. The car gets 60 miles per gallon and was praised by Sierra Club executive director, Carl Pope, who said, "The Honda Insight deserves this first award because it marks the beginning of the automotive industry utilizing 21st century technology."

Chuck Frank is convinced that hybrid technology is the first step in a revolutionary period for the auto industry. "Over the next 20 years I expect big changes in the industry’s attitude towards the environment," he says. "Cars that are emission-free are definitely on the horizon. We just have to let Detroit know that we want them."

Jim Slama is the president of Sustain, a Chicago based environmental organization and editor-at-large for Conscious Choice.

Big Game SUV Hunting

A growing number of Americans are fed up with SUVs and everything they stand for. The Web site www.Changingtheclimate.com advocates "Big Game SUV Hunting" as a means to shame SUV owners into a greener form of transportation. The site offers visitors the opportunity to buy a bumper stickers that reads: "I’m Changing the Climate: Ask Me How." It then spells out the rules for placing the bumper stickers on the big SUVs plaguing suburban America. Such tagging is now taking place across the country and overseas.

According to the site: "Feel the adrenaline rush of stalking the really big game — like the Denali, Yukon, or Tahoe. Get the thrill of witnessing the tagging of an Excursion, Expedition, or Escalade with a not-so-subtle message that will leave them scratching their heads."

"We are trying to use ridicule and social embarrassment to change the habits of the American consumer. Increasing publicity will turn the SUV from a status trinket to the badge of shame that it is. In the old days society had a pillory to shame people out of anti-social behavior. Today we have the mighty Bumper Sticker."

The nagging question for pursuing this action is whether the practice promotes gentle civil disobedience designed to point out irresponsible behavior or, rather, illegal vandalism that perpetuates doing harm to one’s neighbor? — JS

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