If $4/gallon gas is bad, just wait

Not at all. The EV-1 never generated the interest necessary to drive it into production. Likewise, the demonstrated intererst within the car buying public was for SUV's. GM built tons of vehicles that got 30mpg, but what did the consumer buy? SUV's. No chicken and egg at all. Pure market economics.

Don't understand that point at all. Who builds their own cars? Who has ever done so?

Dummies? There were not enough of them to warrant it at the time. Show me another manufacturer who stepped up to building a car for a few dozen people and then agreed to supply parts and warranty for such a limited audience.

Wrong lesson? Have you looked at the number of cars they build that rival the mileage of the most touted cars? They simply got caught by a market turn. Markets turn fast and companies sometimes lag in their ability to follow. Happens everyday. I'm not sure you show an understanding of how supply chains, engineering, and product releases work.

Maybe so - in hindsight, which is always so accurate. At the time, I bet it did not look so smart.

Again - maybe so. And, in hindsight, it would probably have been worth an investment. But hindsight is 20/20.

I don't disagree, but the real market has to be there for real analysis and development. Again - you have to look at the real market forces that existed at the time - not what could have been. The real market forces were a consuming public that did not care about that car. They cared about SUV's. That's what they bought and that's what their feedback was to the motor companies. Say what you will but the sales records speak for themselves.

Reply to
Mike Marlow
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GM didn't "push" anything, they simply built what consumers wanted.

Reply to
Scott

Keep in mind we have a DEMOCRAT MAJORITY IN CONGRESS AND THE SENATE - Can't blame it on the Republicans this term. The previous 4 years ago, we had a REPUBLICAN SENATE AND CONGRESS, not DEMOCRAT.

Food for thought!

Reply to
ADdiy55

Speaking of thought, you need brain food. The Democrats do not have a majority big enough to force anything through. The Democrats have a 51-49 majority in the Senate, republican have filibustered every major bill or Bush uses the veto.....your food for thought......

Reply to
Balanced View

So can we assume that on Jan. 21, 2009, all the nation's problems will be magically solved?

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Retired Shop Rat: 14,647 days in a GM plant. Speak softly and carry a loaded .45 Lifetime member; Vast Right Wing Conspiracy Web Site:

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Reply to
David Starr

I think you left a zero off that price quote: "prices will drop back down to under $10 per gallon."

Lynn

Reply to
Lynn McGuire

according to all the idiots who blame everything on Bush, yes. on Jan 21, 2009, once the new president is sworn in, gas and diesel fuel prices will drop back down to under $1 per gallon.

Reply to
Tom

Mike, I could not agree with you more. Let's do that; let's look at your "real market forces."

We'll, you're partly correct.

The consuming public wanted SUVs over Hybrids, alright, and here's why: the SUV was good for a $30,000 tax write-off. Hybrid vehicles? Only $4,000 tax credit.

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"This is one of the most lucrative breaks in the tax code. We're making it a fiscal no-brainer for businesses to buy giant SUVs."

- Aileen Roder. Taxpayers for Common Sense

More from Market Watch: =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D "In January 2003, Bush initially proposed raising the allowable deduction from $25,000 to $75,000 . . . (but) by the time the final draft of the Jobs and Growth Tax Relief Reconciliation Act of 2003 was put to a vote, the tax break grew to $100,000 through 2005. . . The bill narrowly passed by a margin of 51 to 50, with Vice President Dick Cheney stepping in to break the tie."

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There's your "real market forces", Mike.

In simplest terms: "What's good for GM is good for America."

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Reply to
Doobie Keebler

You do know that that tax break is only available to BUSINESSES that use the vehicle FOR THE BUSINESS. You know, like the folks who use them as taxis, limos and such.

The average soccer mom who bought an Excursion or Suburban bought it for one of two reasons. It is far safer than the cars for hauling around the team, OR they wanted it to keep up with the rest of the soccer moms.

Reply to
Steve W.

This is specifically a business tax break. Has nothing to do with the average consumer's purchases.

Not at all, since the indivdual consumer derived no benefit from these tax breaks. I dare say that most of the moms driving around in SUV's probably have no idea that the tax incentives for businesses to purchase those vehicles even existed.

Reply to
Mike Marlow

On Jul 11, 10:31=A0pm, "Steve W." wrote: OR they wanted it to keep up with the rest of the soccer moms.

never seen a soccer mom yet who wasn't willing to drop to her knees while her old man was back at the house watchin TV

Reply to
alabamarosethorn

If you want to credibly reference these guys at least post a relevant link. This link points to an index that requires a lot more effort to find what you may be referring to, than I'm going to put into a search.

Reply to
Mike Marlow

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