Hybrid cars would have kept GM viable?
Cheap oil built this countryOver the weekend, White House Chief of Staff Rahm Emanuel claimed that America was facing a "day of reckoning" regarding health care and energy dependence while discussing GM's financial plight. Emanuel blamed GM for not investing in fuel efficient technology and for instituting an outdated health care plan (as if the UAW had no part in that).
So, am I to assume that if GM had started building hybrid cars at the same rate as Toyota, it wouldn't be in financial trouble?
That's just nonsense. Even when gas was $4.00 this summer most Americans still weren't sure that hybrids were worth the extra costs. Had GM invested in such technology, they'd be better positioned for the future, but their financial woes would be just as bad.
And, obviously, health care is an issue. It's true that GM gave too many benefits to the UAW. Still, how much of America's health care woes are simply related to our obese, lazy lifestyle?
While it's true that America is facing its day of reckoning, it's not all about GM's failures or national health care, it's about every day Americans getting off their asses and taking some personal responsibility.
Labels: bailout, Foreign Oil Dependency, GM, Hybrid Vehicles
posted by Dahcredyns at
7:42 AM
2 Comments:
GM's failure isn't just that GM didn't build hybrids.
GM's failure is due to what they "did" build.
1. GM built unattractive cars that no one desired, and had very poor fuel economy.
2. GM focused all of their energy on "large trucks"
With this strategy, GM left themselves vulnerable to a fuel crisis.
When the "inevitable" fuel crisis arrived in 2008, GM had no desireable products to offer their customers....
GM has been losing a massive amount of money since 2000. GM was already on the precipice before the fuel crisis. The fuel crisis just pushed them over the edge.
Today, hybrid sales are down, so how would they have helped GM after the short term fuel spike subsided? Even Toyota is now seeking government assistance and it delayed plans to build the prius in the US.
Up until recently GM sold more cars in America than anyone else, so how were they building cars no one wanted?
Had they been smaller, more efficient cars they'd be in an ever worse spot because their profit margins are far less on such vehicles.
The small vehicles GM successfully sells in Europe are only profitable because they cost more and Europeans are willing to be more for efficiency because of the high cost of petro.
Post a Comment
<< Home