User 272270

Auto Industry Recovery Once Again Postponed

I agree with this article...the auto industry has a lot more of an effect on the economy then most Americans think. The people out there that post such comments as "GM/Ford/Chrysler need to go under" ...are uneducated idiots who know nothing about the economy. All they think is hey i drive a Toyota I dont need Detroit...but in reality Detroit has helped build this Country from the ground up. Not to mention they still continue to support thousands of jobs directly and millions of jobs indirectly thoughout America. This is a fact, not theory or opinion. If you take a spin around Detroit today you will see this first hand as a lot of non- auto manufacture companies have went under/jobs cut etc over the years which is directly related to the job lose from the Big 3. The day Americans wake up and stop pointing fingers at each looking to place blame is the day our economy starts heading in the right direction towards a recovery.

Chevy Volt Debuts to Enthusiasm in California

This is simple high school knowledge- When there is a change in the supply schedule, occurring thought technological changes, or through changes in the business costs…An increase in technology or decrease in costs would have the effect of increasing the quantity supplied at each price, thus reducing the equilibrium price (in this case the Volt). On the other hand, a decrease in technology or increase in business costs will decrease the quantity supplied at each price, thus increasing equilibrium price. So the comparison between the computer and the Volt in regard to equilibrium price as I have stated is valid according to basic economic knowledge. If this price doesn’t come down- either business costs increased or there is a shortage in the market in which we would need to correct the disequilibrium, and the price of the good will be increased…which would then lessen the quantity demanded / increase quantity supplied thus that the market is now in balance. This is a fact, not theory or opinion…

Take a look at Hondas fuel cell car selling for 100k (or lack of selling)…it cost Honda nearly 2 million dollars…simple math = a loss on each FCX sold. So why do they keep building them? Re-read the paragraph above and now you understand why technologic advances are going to be a huge leap in making these new alternative cars more affordable. Now you understand why there is a good possibility that GM will also loose money when the Volt is actually being sold in the initial stages.

Chevy Volt Debuts to Enthusiasm in California

The Volt is a completly differnet car compared to the prius. The Prius is a parallel hybrid - it uses the electric motor and gasoline engine to drive the wheels. It is designed to deliver its best fuel economy in congested, European stop-and-start driving. At slow speeds, the Prius uses mostly electric power...at highway speeds the prius is just another gasoline engine. The Volt is a series hybrid, meaning only one power source - the electric motor - drives the wheels. The result is a much more effiecient vehicle in regard to mpg.

My comment above is a fact. These batteries for the Volt are pushing 15 grand a piece because no one to date has figured out how to produce these at cheaper cost. These batteries are actually the length of the entire fram of the car. If these batteries were to cost half of this, that is more room that could make the overall price for the Volt cheaper...also the more volume built will also make it possible for GM to lower the price tag for this car. The only thing that will make this car not come down in price (even if technology is built cheaper etc) is the fact that the demand is so high for this car - which then would make this car remain at the same price and/or actually cost more. The Volt will be costly to build, and GM might have to sell it at a loss for years - like Toyota did with the Prius - until the expenses fall as volume rises.

Chevy Volt Debuts to Enthusiasm in California

Jaybird - You dont understand the concept of new technology vs research and development to make new technology more cost efficient. This concept is simple - the computer cost a lot more when it was first introduced, after years of R&D the computer industry developed new technologies to make parts more affordable which overall made the computer cheaper. You cant compare a 'traditional' vehicle to an electric vehicle relative to price / make it cheaper. A traditional vehicle, it is nearly impossible to make better = make cheaper. Now imagine a new electric vehicle…it is priced high to begin with (like the computer was) because the parts (batteries etc) cost a lot more...in time these companies will be able to produce the parts cheaper which means the overall price of the product will decrease. This concept is true when comparing new technology like the Volt vs the concept of the first computer and making parts less expensive and the overall product being sold at cheaper cost.

Government Approves $25B Low Cost Loan Package for Auto Industry

Paul- Here are the answers to your questions.

1. Import the 40+ mpg cars they build that are selling well in Europe and elsewhere? They don't need $25 billion to do that, just some cargo ships (which I suspect are readily available right now real cheap.)

Answer: If you understand the relationship between the dollar and foreign currency...you now understand that the difference between these two makes a big difference between the profit a company came make when shipping cars over here. Also, you have under estimated the cost it takes to ship these cars over here. If it was so easy, why don't all the foreign car makers do the same thing? Its simple, it cost more than what you think. Its cheaper for the car manufactures to build billion dollar plants in the US then it is to ship these cars here.

2. Start building the NGV's again (they sell them in Canada and other countries) that Boone Pickens is spending $60 million to advertise for them. They'll sell more of them than Volts, and make more money doing it.

Answer: Detroit could produce Natural Gas cars if they wanted...in fact there are many of them (mostly trucks) that are on the road today. The reason these truck companies have them, is because they are willing to build (spend billions) these natural gas fill up stations needed to fuel these NGV trucks. The answer here is, if some entrepreneur / govt funding would start putting natural gas pumps readily available at your local BP/Shell etc...then the automotive industry would start pumping these cars out in the masses. After all, this technology isn't new by any means. You cant blame Detroit for not pumping these NGV cars out by the masses when no one will buy them because there is no where to fill your car up with Natural gas. Having one pump every 5,000 miles isnt going to cut it...

3. Send each dealer who wants one a dual-fueled NGV, and help them set up a CNG refueling depot at their dealership.

Answer: Who is paying for this CNG fueling station? Once again you have under estimated the cost of this type technology ....you cant expect a struggling auto industry to come up with billions of dollars to transform the way we used the automobile today without providing them funding. How comes people arent saying that your local Exon etc (that are making record profits) should build these at their expense? After all they are in the buisiness of filling your car up...not the auto industry.

So many people are confused on this auto loan package...This isn't a bailout for the auto industry this 25 billion pkg was approved last year under energy bill that was passed by congress. This legislation wasn't just approved, it was funded. If the govt comes out tomorrow and says that (pick any industry that is struggling now) it is mandating certain mpg requirements a few years from now that will cost these companies billions of dollars...the govt has no choice but to provide loans to make this happen, otherwise the companies simply will not be able to meet these requirements and more jobs will be cut. This wasn't a bailout, it was a promised loan that was part of the agreement between the auto industry and the govt last year to reduce our dependency on foreign oil. Isnt this what we want? Everyone keeps complaining about fuel prices...but these same people dont understand the fundamentals behind getting us there.

$634B Spending Bill Now In Congress Provides Loans for Automakers

So many people are confused on this auto loan package...This isn't a bailout for the automakers, this 25 billion pkg was approved last year under energy bill that was passed by congress. This legislation wasn't just approved, it was funded. If the govt comes out tomorrow and says that (pick any industry that is struggling now) it is mandating certain mpg requirements a few years from now that will cost these companies billions of dollars...the govt has no choice but to provide loans to make this happen, otherwise the companies simply will not be able to meet these requirements and more jobs will be cut. This wasn't a bailout, it was a promised loan that was part of the agreement between the auto industry and the govt last year to reduce our dependency on foreign oil. Isnt this what we want? Everyone keeps complaining about fuel prices...but these same people dont understand the fundamentals behind getting us there.

$634B Spending Bill Now In Congress Provides Loans for Automakers

My first car- 93 Pontiac Grand prix...I put 210k on it before selling it to a high school kid. Since then I had a 97 Buick Park Ave Ultra...put 180k on it. I now have Pontiac G8 and Cadillac DTS...both spectacular cars at reasonable price compared to all other competition. In the 90's some of the quality for GM products had room for improvement...but in todays market there simply is no gap between foreign cars vs GM in relation to quality. Dont take my word for it, take a look at JD power etc and they will tell you this fact. In the 90's these types of comments had some truth, and since then GM has made great strides to bring the quality up inside and out of every single GM vehicle. Only thing i can think of when people post comments negative towards GM today, is they are jealous that their neighbor has that brand new Malibu or Cadillac...while they still have their boring camry / prius.

Chevy Volt Debuts to Enthusiasm in California

Its a new technology...in time they will be able to produce at cheaper cost. You remember how much your first computer cost? Look at the price of a computer today. It amazes me about how people keep posting negative comments towards GM on the Volt bashing it for no reason. Any engineer in any company knows that new technology will always be expensive at first...Seems there are numerous people who hate GM for the Volt stating that 40k is too much. However on the other end Honda announced a fuel cell civic for 100k...but doesn't get the same type of comments. GM is on the right track...I would buy a few of these new Volt's if available.