Apparently gasoline price elasticity is finally kicking in
General Motors officially blew up its old business model Tuesday, closing four pickup and SUV factories, announcing a new small car that could get 45 miles per gallon and shedding 10,000 jobs in the process.
But it remains to be seen whether the world's largest automaker by sales can sell enough cars to make money in a shrinking U.S. market and stay ahead of the bill collectors.
Also see, from today's Boston Globe, Ridership Rising Fast, MBTA Announces
Business & Technology | GM slashes big-car production | Seattle Times Newspaper
2 comments:
GM... a day late and a dollar short. Actually 5 years late and $500m short. Instead of looking at the past sales for future growth, they should have been anticipating this event. Many others did and unfortunately my next vehicle will be foreign made. I have owned Chevroletes, Buicks, Olds, Pontiac and GMCs and liked them all, but no more. It will take GM 5 years to get a decent hybrid/electric vehicle on line and tested. I need one now. GM should have used the rotary design engine and led the pack.
Such a shame.
Respectfully
Richard, Arkansas
I had no idea they had done that... it's about time!
I remember back when gas was hitting close to 3 dollars a gallon, and I heard someone say it would take gas hitting the $4 mark before Americans changed their minds about driving 2 tons of steel around with them to work.
In a human ecology class I took in college there was a noted theory about how Americans only respond to 'catastrophe's'; I think it was called "Catastrophy Theory". I think GM might subscribe to said theory as well!
Nice blog you have here.
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