Miken

China Looks to Electrify Our Cars

I would like one person to prove to me that ANY hybrid makes economic sense. For example, compare the Toyota Corolla to a Prius. Both within 200 lbs. of each other, wheelbase less than 4" different, basically would be appealing to the same customer from a size standpoint. The Corolla base model is $16,150 and the Prius is $23,375, a difference of $7225. Based on the EPA estimated combined mileage, the Corolla gets 30 mpg and the Prius 46.

At $2 per gallon gas, and driving 12,000 miles per year, it would take 26.0 years to pay off the premium cost for the Prius. At $4 per gallon, it would take 13 years, of course.

An even better comparison would be the Honda Civic and the Hybrid Civic. The regular Civic gets 29 mpg and the hybrid 42. There is a $7545 difference in base price. Using the same calculations it would take 29 years to pay off the premium.

If you want to save the world, by all means, drive a hybrid. If you just want to save money....not a smart idea.

GM's Biggest Growth Market Is Now China

To TeresaE and Philly Jim:

Read these quotes very carefully:

"In part that's due to the Chinese government cutting the tax rate on new car purchases, previously at 10%, in half."

"China would like to rely less on its foreign exports for its continued economic growth and more on its own domestic markets."

"The Chinese government is, however, intent upon developing its own auto technology infrastructure and is committing billions of Yuan toward technology modernization efforts in the industry this year."

Starting to get the drift here? The government in China has made a huge commitment to a strong automotive industry. Why? Because they know that a strong auto industry, and manufacturing in general, bring with them a long and powerful value added stream that feeds the economy in numerous ways.

Our government, and America in general, is indifferent to the manufacturing sector and is content with moving the same money from one person to another. In the future, if you think that a country full of Starbucks, brokers, and retailers can compete with a country that manufactures things such as China, Korea, India, and Mexico, you're sadly mistaken.

If you tour the University of Michigan's graduate program in manufacturing, you would be hard pressed to find a caucasian face, all Asians. Even the Dean is Chinese and splits his time between Ann Arbor and Shanghai.

By the way Philly Jim:

""Yet its auto industry is still largely reliant on technology borrowed from western companies."

If you had been in China and understand that the one thing they still need is our technology, you wouldn't say:

"GM is unloading all of their junk on America and offering up state-of-the-art technology in their drivetrains being sold in China." Simply not true. The difference is that the Chinese value GM products and, ironically, Americans like yourself don't.