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Originally Posted by Seaver
First off this is the biggest load of bull, and I always feel the person saying it is insulting my intelligence if I don't stuff it into the ground. IF there was a link, the auto industry would be in much better shape. They would have been able to work together prior to any price spikes. Look, it takes about 5 years to build a new model. If they were working together in this vast-white-CEO-conspiracy, they would have started building hybrids so they were in full production in time for the oil spikes. They weren't, and got a large one stuffed up their ass because of it. They have tons of SUV's sitting unsellable, while they lost almost entirely the share of the sedans for the average American. They REACT to the changing oil prices, when oil was $20-30 a barrel gas was cheap and they went accordingly. No one went for the hybrid technology because the average price was $6-10k more per car, it wasn't economically worthy. IF there was a connection between big oil they would have had the technology rolling out with hybrids on the lot. Instead they react only, and because of that they are bottoming out.
/rant off.
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The reaction theory assumes the auto industry has no foresight. Obviously this isn't true considering that GM had the opportunity to fill the roads with electric cars, for which there was and is substantial demand, in the 90s and they simply stopped. Don't make me cite a documentary. Ford produced a hybrid vehicle nearly 5 years ago, and it's one of their better selling vehicles. It insults the intelligence of everyone to suggest overtly that auto manufacturers don't consider the interests of other industries. Of course they do. If you don't believe me, ask yourself why so many GM vehicles can run on corn ethanol, which we all know is a horrible idea.
Temporary demand isn't usually enough for a smart, long term industry to invest. It takes a clear indication of continued revenue stream to make an investment in, say, a 9MPG vehicle. Especially a 9MPG vehicle that's functionality can easily be replicated by a 15MPG vehicle.
There are active interconnections between big oil and big auto.
Quote:
Originally Posted by Seaver
I would move the plants from the Unionized-to-Oblivion Illinois/Michigan and move it south.
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First off this is the biggest load of bull, and I always feel the person saying it is insulting my intelligence if I don't stuff it into the ground. Do you not think that other auto manufacturers in the US have unions? Of course they do, and they're still profitable, even now during our recession. Toyota is unionized. Subaru is unionized. Even Honda is unionized.
I'm sure you think it's a knee-jerk reaction for a liberal to blame big oil, but to have the knee-jerk reaction of blaming unions in the same breath... doesn't that seem somewhat inconsistent?