George Bush wants America to cut its dependence on foreign oil. But he has no plans to mandate car manufacturers to better gas consumption figures. The consequence may be that American car makers go out of business. For the past few years, Ford have concentrated on huge gas guzzler SUV's. American car makers can make small cars. They can make fuel efficient models. They have made hybrids. They have made electric. Almost none of these go to market.

But Toyota? They made the hybrid Prius years ago. Santa Monica is the epicenter of the Prius cult. Every second person drives one. But these movie star type people have popularized and regularized the hybrid notion. And Toyota have lived with the snide comments about the car.

Now they have introduced the Highlander SUV, in hybrid, the Lexus 330 in hybrid and, ta ta; the Camry in hybrid. The Camry is the biggest seller in America.

So, the Japanese car maker assesses that the market now wants efficient gas misers. Except, GM is in virtual bankruptcy, Ford is close. They couldn't cope with a switch to new low gas cars en masse. And Ford's announced salvage plan is too little, too late.

American cars have lost their premium value. It will be a long way back. And this in the era of rapid change and unsure oil supply. Asian and European car makers are now more in tune with American consumers that Detroit. How did this happen?

And this particularly American business effects the whole economy. How this plays out will impact everyone in America.

This entry was posted on February 2, 2006 at 12:13 am. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted in Main Page by Richard McKinnon No Comments Yet