What no One is Saying about the Auto Bailout

I haven’t heard anyone talk about this recently, but I think this is incredibly important.

The auto industry is not necessarily suffering due to their lack of hybrid vehicles.  Even if they put more hybrids out on the market, few people would be able to afford it.

I don’t know if this is a statistical fact, but people used to buy cars every few years, but a new generation has been taught a fundamentally different set of values in regards to cars.  People simply don’t want the “newest” car.  At least this is the feeling that I am getting when I talk to people.

Car companies, on the other hand, are expecting the American people to buy cars every few years.

The reasoning seems simple: people don’t buy cars every few years, so the car companies need to make less cars.


One thought on “What no One is Saying about the Auto Bailout

  1. For me, the problem is slightly different; Detroit does not make a vehicle that I want to buy.

    I want something that is quick, cheap and reliable, but Detroit offers me SUVs and trucks that get worse gas mileage than my seventeen-year-old Saturn! Showing off about a Truck or SUV getting 22MPG does not impress me when I still get 30-35.

    I don’t want a hybrid – that is a jack of all trades and a master of none. The technology is immature and rapidly changing. And it’s a huge compromise.

    I am happy with a gas-powered engine until full-electric comes along. But Detroit does not want that (electric = no maintenance = no profitable service bays), and neither do our “friends” in OPEC.

    How is it that a little company like Tesla motors can design an all-electric supercar, while Detroit, with their billion-dollar-research budgets, cannot?

    More here: http://wizardprang.wordpress.com/2009/03/21/too-big-to-fail/

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