Are Detroit vehicles irrelevant?
Next month President Bush is going to meet with the Big 3 about energy and the environment, pensions and health care, and currency problems with Japan. Unfortunately, building more "relevant" vehicles probably isn't going to come up.
When Bush told Detroit to build more "relevant" vehicles, auto executives were not too happy. In their minds, huge gas-guzzling vehicles are relevant, which must explain why almost every flex-fuel vehicle - those that can run on ethanol-mixed fuels - are extreme gas guzzlers.
Without tax incentives and even with incentives, ethanol isn't always cheaper than gasoline, so flex-fuel vehicles aren't helping the consumer by offering cheaper fuel costs.
O.K., so is Detroit building flex-fuel vehicles to fight foreign oil dependency?
That doesn't make sense either. If you want to fight foreign oil dependency, then why not offer flex-fuel capabilities in all vehicles? Why just offer flex-fuel capabilities only in vehicles that might fail CAFE?
Today, their are just 600 ethanol pumps covering ALL of America, compared to about 180,000 gasoline pumps. Just a little over a year ago - when GM churned out most of it's flex-fuel vehicles - there were only about 300 pumps. This is why GM never told anyone about the flex-fuel capabilities they added to many gas-guzzlers for a number of years - there was NOWHERE to fill them up and in most states there still isn't.
Now GM is trying to take credit for such actions.
In today's world, flex-fuel gas guzzlers that receive CAFE credits can only be called one thing, irrelevant. Flex-fuel gas-guzzlers neither offer the far majority of Americans cheaper fuel nor do they help fight foreign oil dependency.
While ethanol offers tremendous potential, today's gas-guzzling flex-fuel vehicles do not.
Later this year or early next year, GM will start offering hybrid cars. Once again, most of them will also be gas-guzzlers.
With the unstable nature of gasoline and oil and the limited supply of ethanol and pumps, are any of these vehicles - whether hybrid or flex-fuel - really relevant?
Labels: Ethanol, Flex-fuel, Foreign Oil Dependency, GM, Hybrid Vehicles



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