Monday, December 1, 2008

Why electric and hybrid cars won't save the Big Three

Congress wants to force Detroit to move heavily into electric and hybrid production.Should congress run the Big Three? They are doing such a good job running the country. I have nothing against being "green." However, having companies sell more of a product they are losing money on is not a recipe for success. Companies make money by selling a product the consumer wants at a profit. Congress has no clue what it takes to make a profit. If they run low on money, they can just raise taxes or authorize more borrowing.

Why electric and hybrid cars won’t save Detroit
The Buffalo News / The Washington Post ^ | November 30, 2008 | Steven Mufson

Posted on Monday, December 01, 2008 12:19:37 AM 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...

Link here.

1 comment:

BeyondGreen said...

Plug in cars would cost the equivalent of 60 cents per gallon to drive at the current average electric rates. The electricity to charge them could conceive ably come from solar or wind.This past year the high cost of gas seriously damaged our economy and society. While we are doing the Happy Dance around the lower pierces at the pump OPEC is planning straggly to raise the price per barrel back up to between 70-100 again. We really need to get on with alternative energy. Bail us out of our dependence on foreign oil and the control it has over our economy and society. There is a great new book out called The Manhattan Project of 2009 Energy Independence NOW by Jeff Wilson. I highly recommend this book for anyone who is worried about our economy and would like to see our country become energy independent.

check out this article on electric cars and the project to build the infrastructure needed to suppor it in California