GM is a behemoth that the congressional leaders are wrestling what
to do. Once again GM and the other automakers keep missing clues. As
Toyota with its Prius and Honda with its erstwhile Civic hybrids have
steadily been gaining ground, GM has been asleep at the wheel. Redux
1973.
The oil spike will be shown over time to do what common sense
couldn't, change the behavior of the world and namely many people like
you and me. The world is choking on our emissions and our economy is
choking on its debt in large part because of George Bush. Not helping
that is the fact we send 500 billion or so dollars overseas for our gas
addiction.
While Ford has been proactive as of late with their Escape Hybrids,
they have bought technology to get a foot in the door. GM is a
latecomer, but has a real possibility with their car the Volt.
GM is working on getting the EPA to get certification of their
technology forward car, the Chevrolet Volt at 100 MPG. No other car on
the market now gets more than 40 or 50 miles per gallon that is
generally available. If GM is able to get this certification, it will
satisfy the driving needs of probably 80 or 90% of its car driving
commuting customers, I suspect. I find as a Santa Cruz real estate
broker I rarely drive more than 100 miles in a day.
Most commuters would be able to travel about 40 miles on its
batteries, then the 1.4 liter gas engine takes over. The EPA has to
develop new testing methodology in order certify this car. The car will
primarily be an electric car, but the gas engine will be there for the
range extending needs of its customers.
Since the classification as an electric car will allow it to shed
hundreds of thousands of pounds of carbon dioxide emissions annually, I
suspect both parties are looking forward to getting this done.
Whether we have two major automakers of US origin or not, I don't
think really matters in today's global economy. With quite a few
foreign manufacturers on US soil and you and I buying the best product
and value, often GM, Chrysler and Ford are not our first choices.
I am hopeful that GM with its new Volt
due out in 2009 or 2010, that is will get it recharged and be the
leading vehicle in its charge toward a leaner more effective
manufacturer. Mangagment is largely to blame as you and I make the
choices with our wallets. The executives with their fat salaries are
not too keen to shake up the company, not saying turning around a
battleship is a one man operation, but the lead has to start from the
top.
While many decry the handing of billions of dollars without concrete
assurances that further mismanagement won't continue to afflict the
organization, the potential damage from walking away may be too severe.
There are so many ancillary businesses and services that support or
live off the those who work for the big three automakers that a flat
out walkaway strategy would be more economically devastating to the
region already hit by cash-flow problems.
Sometimes surgery and amputation is the only way to keep a patient
alive. How they go on from whatever monies they get from this or the
new administration will be seen. I am hopeful that they finally "get
it" and the rest of the US wakes up t the fact global warming is a man
made problem. The US as one of the largest energy users in the world
needs to take ownership and responsibility for the problem and I think
you and I are finally willing to do that.
The next administration in my opinion can serve us well by spending
money on infrastructure of energy. Programs like solar, wind and
natural gas production and distribution facilities can benefit all of
us. Keeping our dollars and employment on our own shores, can help us
achieve more energy independence, a cleaner emission profile, and
stimulate an economic recovery quicker.