According to yesterday's Washington Post, all those Priuses
Toyota has been selling aren't making them much money. Rumor has it that those touted
hybrid SUVs General Motors has been parading aren't turning profits either. What about the Chevy Volt? In June, GM Vice Chairman, Bob Lutz, said that the highly anticipated plug-in hybrid would be priced at $40,000 in its first year and would generate no revenue.
All the while, Congress is staking any bridge loan money on demands that the American Auto Industry "retool" to develop highly efficient cars that run on alternative fuels in the near term. This puts the car companies in the quandary of committing to sell unprofitable cars to get enough government money to keep them in business. Does anyone see a problem here?
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By Jean-Charles Jacquemin Posted: 11/26/2008 5:09am PST
From : http://en.wikipedia.org/wiki/The_Wealth_of_Nations#Of_the_Real_and_Nominal_Price_of_Commodities.2C_or_of_their_Price_in_Labour.2C_and_their_Price_in_Money
"Smith had a particular distrust of the tradesman class. He felt that the members of this class, especially acting together within the guilds they want to form, could constitute a power block and manipulate the state into regulating for special interests against the general interest:
"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary."[Smith (1776) Book I, Chapter 10, para 82]
Very often since then authorities have found such "conspiracies against the public" not through meetings of merchants but just through repeated signals from merchants like : "Hybrids Are Too Expensive".
Only independent researchers may affirm such things after publication of verifiable data.
JC NPNS
By Jean-Charles Jacquemin Posted: 11/26/2008 5:09am PST
From : http : //en.wikipedia.org/wiki/The_Wealth_of_Nations#Of_the_Real_and_Nominal_Price_of_Commodities.2C_or_of_their_Price_in_Labour.2C_and_their_Price_in_Money
"Smith had a particular distrust of the tradesman class. He felt that the members of this class, especially acting together within the guilds they want to form, could constitute a power block and manipulate the state into regulating for special interests against the general interest:
"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary."[Smith (1776) Book I, Chapter 10, para 82]
Very often since then authorities have found such "conspiracies against the public" not through meetings of merchants but just through repeated signals from merchants like : "Hybrids Are Too Expensive".
Only independent researchers may affirm such things after publication of verifiable data.
JC NPNS
By Brian Tourville Posted: 11/29/2008 1:44pm PST
opportunities and decry sensible oversight as Socialist Conspiritorial_ism and Class Warfare.
This Bold thinking got us Sen. Phil Gram who slipped in deregulation removing controls that were put in place stemming from the 1929 Stock Market Crash.
Then Bold deregulative opportunism had Wall St. Firms packaging products that eventually destabilized foreign purchasers, and leveraging deals in the 40 to 1 range, thank you Sen. Gram for this ennoblement.
NAFTA brought to us by Bill Clinton - completely unregulated Trade leading to an exodus of employment opportunities here Stateside and tax credits furthering this exodus that has American unemployment leaping not thousands , but millions tri_quarter recently.
Regardless of the privileged Class investors opinions of being well meaning Free Traders, the Wealth of a Nation is measured in it's Manufacturing - Development capacities which go hand in hand with new products for Export.
Electric Cars ?
You can convert a Gasoline Vehicle to all Electric for $5k - not including BATTERIES.
So tell me, this being a Retail Price how is it that Detroit can't better this cost ?
They won't be paying huge Foundries costs , or big Engine Machining as Hybrids run Motorcycle engines of less sophistication , Transmissions as we know them and a raft of other costs that are gone from the Ledger with Electric Hybrid production and Platforms can be then Standardized as BATTERY Paks all will run in the center of the Vehicle.
GM wants to creep up on VOLT vehicle design production, selling us 30mpg Gasoline and Flex Fuel Vehicles in order to stay viable. Remember, before this Credit Crunch, their Stock was selling for $43.00 per share.
The New Administration wants BATTERY manufacturing done right here in the USA - right now.
They also want Hybrid Electrics with Onboard charging capacity the Focus for Domestic consumption and Export - as the Opportunities are available.
There is no Glory in being last to market, nor salvation from Hedge Fund Speculation that will attempt to drive up per BBL. Oil costs in a last ditch effort at Profiteering once again.
As to Electric GM vehicles - the problem has been and still is the BATTERIES.
There are two factories being built - not in the USA - to provide Lithium Ion Automotive Batteries, I believe NISSAN is involved.
The VOLT is rumored to cost $40K the first year of introduction - which will force Washington to provide an incentive structure to get private ownership buyers into the Hybrid camp.
$9K of this cost is the BATTERY Paks.
40 miles per charge and 400 miles using the onboard charging system - between plug ins.. not bad for a start.
And - they won't look nor ride nor handle as a rolling Tin Trash Can - as does the Prius !
Once owners are no longer suffering from $4.00Gal. gasoline here in America, as we are a decentralized work force - with lots of Suburbs - the disposable income then freed will boost savings and purchasing boosting employment... tough thought to follow but do try.
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