Saturday, January 15, 2005

How can GM think hybrid cars make no sense?

GM executive Robert Lutz not only thinks all hybrids are just PR hype, he believes hybrid cars make no business sense. Only hybrid trucks and SUVs, argues Mr. Lutz, make sense because the cost of hybrids is too high to justify a 30 percent gain in fuel-efficiency in cars.

While Toyota disagrees, Mr. Lutz is sure not to gain any new environmental credentials with that kind of cost-justification.

Yet, Mr. Lutz has tried to argue "For Toyota, it(the Prius) was a huge, huge, immeasurably valuable PR coup."

A huge PR coup?

Isn't successful PR and marketing part of a successful business? Isn't that why GM will spend about $300 billion on marketing this year alone?

Apparently, that is not part of Mr. Lutz's business sense.

Hopefully, not all GM executives have the same business sense as Mr. Lutz.

More hybrid cars.

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1 Comments:

Blogger Paz said...

More people should learn about electric vehicles as a solution. "Zero emissions" is something that's going to be required by law one day (you know it will). Making the decision to go electric is far cheaper anyway, like 10 cents on the dollar vs. gas. (source: zapworld.com)

12:53 PM  

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