Posted on 11/30/2008 9:19:37 PM PST by 2ndDivisionVet
Many members of Congress believe they know what the car company of the future should look like. “A business model based on gas — a gas-guzzling past — is unacceptable,” Sen. Charles E. Schumer, D-N.Y., said recently. “We need a business model based on cars of the future, and we already know what that future is: the plug-in hybrid electric car.”
But the car company Schumer and other lawmakers envision for the future could turn out to be a money-losing operation, not part of a “sustainable U. S. auto industry” that President-elect Barack Obama and most members of Congress say they want to create.
That’s because car manufacturers still haven’t figured out how to produce hybrid and plug-in vehicles cheaply enough to make money on them.
After a decade of relative success with its hybrid Prius, Toyota has sold about a million of the cars and is still widely believed by analysts to be losing money on each one sold. General_Motors has touted plans for a plug-in hybrid vehicle called the Volt, but the costly battery will prevent it from turning a profit on the vehicle for several years, at least.
“In 10 years are they [GM] going to solve the technological problems with respect to the Volt? Sure,” says Maryann Keller, an automotive analyst and author of a book on GM. “But are they going to be able to stake their survival, which is really more of a now to five-year proposition, on it? I’d say they can’t. They have to stake their future on_Malibus, the Chevy Cruze, and much more conventional technologies.”
U.S. automakers face demands that they provide evidence and assurance that they would use federal bailout money to transform their companies to produce automobiles of the future, using advanced technologies and featuring hybrid or plug-in vehicles.
(Excerpt) Read more at buffalonews.com ...
They will fail since I won’t buy any!
I was thinking the same thing. Pneumatics are another alternative — as Tata Motors of India has already shown.
Regardless, it's nuts for any government to believe that it can pick winners from amongst emerging technologies. With such misguided central planning, the cost of being wrong will be a lot greater, than if things were left to the marketplace.
“I need to go 400 miles in a day to get to the next spot.”
A team of horses isn’t going to get abigkahuna the 400 miles a day he needs. Try again.
I agree - but you should add “apologize to the buying public” to that list.
Chuckie "Putz" Schumer is so stupid even his own mother thought that his nickname was appropriate.
If Detroit wants to save itself two things must happen:
First, match the car quality already provided by Honda and Toyota. Prove it.
Second, bust the unions. Then pay workers prevailing wages, not outrageous wages, and allow maximum use of innovation regardless of the impact on jobs.
Do I think this will happen. No. The Big 3 automakers are doomed to failure.
Any business that accepts criticism of their ‘business model’ from the likes of schumer deserves to vanish.
LOL! My point exactly on the last thread. Wait till they try to throw a ladder rack and a unit of plywood on one of these roller-skates. Or haul a family of 6 and a 4 horse trailer 600 miles.
City folks live in an entirely different world, it seems. They must think this stuff just happens with fairy dust or something...
Went bankrupt and got bought out by AMC in 2002, I see. I'd forgotten all about them.The future's so bright ...
Many members of Congress believe they know what the wagon company of the future should look like. “A business model based on horses alone — a hay-guzzling past — is unacceptable,” Sen. Charles E. Shroomer, D-N.Y., said recently. “We need a business model based on wagons of the future, and we already know what that future is: the hybrid horse/internal-combustion buggy.”
But the wagonmaker Shroomer and other lawmakers envision for the future could turn out to be a money-losing operation, not part of a “sustainable U. S. carriage industry” that President-elect Garfield and most members of Congress say they want to create.
That’s because wagon manufacturers still haven’t figured out how to produce horse-drawn/engine-driven vehicles cheaply enough to make money on them.
After a decade of relative success with its hybrid Nag-o-Sake, Japan’s Yoyota Wagon and Carriage Concern has sold about a million of the hybrids and is still widely believed by analysts to be losing money on each one sold. Studebaker has touted plans for a horse/motor hybrid vehicle called the Colt, but the costly two-stroke gasoline engine will prevent it from turning a profit on the vehicle for several years, at least.
“In 10 years is Studebaker going to solve the technological problems with respect to the Colt? Sure,” says Maryann Keller, an carriage-industry analyst and author of a book on Studebaker. “But are they going to be able to stake their survival, which is really more of a now to five-year proposition, on it? I’d say they can’t. They have to stake their future on buckboards, sulkies, and much more conventional technologies.”
U.S. carriagemakers face demands that they provide evidence and assurance that they would use federal bailout money to transform their companies to produce wagons of the future, using advanced technologies and featuring hybrid animal/motor draft vehicles.
Plug into what? We cannot build power plants so there will be no electricity to recharge the batteries.
What amazes me is these dingbats taht hate coal, which helps produce electricity are for electric cars.
Obama says he want to raise coal so it puts the out of business and so that electricity raises 3x it precent rate AND they want us us to use electric.
I swear these people can’t be this dumb can they ...
Nancy Pelosi and Harry Reid and the Sierra Club will become the new CEO’s of GM.
They’ll build Ford style Cooper Minis by Gubmint edict.
I won’t buy it. I want something that goes real fast and gets real shitty gas mileage.
They have ways of trying to make me change my behavior. Tax incentives to buy green cars, luxury tax on gas guzzlers.
They can lick my hairy beanbag. I promise to buy something to piss them off even if it costs more money.
You are correct, but you must also add that the senate could not run its own restaurant, it gave that up this year.
It's called bankrupcy
The say way they keep blaming the Republicans for the Banking Fiasco that they created under their "fair housing act". One day the bulk of America is going to wake up and realize the Change Obama promised was actually complete Mafia control of America.
My son is an auto technician whose specialty is fuel and engine effeciency.
He says hybrids are extremely dangerous and a fad. He says one of the most underreported stories now is how dangerous they are and how many mechanics get hurt on them.
Considering the history of the auto industry, it is more likely that the big three will just fail period. There are already electric car companies popping up all over. One is building a plant in my county. They can make the product much cheaper and more efficiently than Detroit, and since they can probably afford to exist on relatively low sales, Big Auto won’t be able to compete. Let’s face it, for alternative fuels to work, gas stations all need the equipment to fill or charge these new cars. Until that happens you won’t have massive sales without a mandate, and tax incentives for stations owners to upgrade.
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