Quote:
Originally Posted by mikesright
Did you even pay attention to that paragraph, let alone the article? He pointed out later that with all of the economic uncertainty and with the price of oil going higher and higher, that fuel economy is top-of-mind. He also went on in the article to say that they have extensive plans to meet the consumer's needs with lots of hybrids and putting 4 cylinder engines in vehicles they wouldn't have dreamed about doing until now.
Also, he was absolutely correct to say that the consumer reaction isn't rational. You can get $10,000+ discount off a truck right now, but you'll have to pay sticker for that compact car, for one, and secondly, the savings in gasoline for the average person for a pickup vs a car is about $60/month. When people are doing this, or trading in their upside-down truck for a Cobalt, losing ten grand plus for a $60/week gain, it is irrational.
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Yes. I read the paragraph and article.
Did you even bother reading what I wrote?
Not only is their math overly optimistic, but the "worry" of people that fuel is going to cost more is hurting trucks. Notice, this runs COUNTER to what GM has been preaching for the past 35 years, "Americans want trucks. Nothing will stop Americans from buying trucks. So, we will continue to build trucks. Forget about all the small cars because we can't make money on them anyways. And no one wants to buy them."
How long did it take for GM to realize that what they were the only ones doing this? Everyone else hedged their bets with competent small cars, mid-sizers, AND trucks. You realize the first competent mid-sizer from GM came out last year? LAST YEAR! And the Aura doesn't sell well.
The market has been completely rational. It is GM that has been unable to read the market trends. Compact cars have been a significant trend since the 1960's. They have NOT gone away. Every year, compact cars have gained in acceptance. And compact cars are also becoming more and more feature filled. But GM has not kept pace.
Let's do the math!!
A Silverado 4.8L is 14/19. Let's call it 16 mpg. 26 gallon fuel tank. $4/gal. $104 fillup. Range = 416 miles.
A Malibu 4-cyl is 22/32. Let's call it 27 mpg. 16.4 gallon fuel tank. $4/gal. $65.60 fillup. Range = 442.8 miles.
In 10,000 miles, the Silverado, assuming these numbers, will cost $2,500.
In 10,000 miles, the Malibu, assuming there numbers, will cost $1,481.48.
The difference is $1,018.52.
In 35,000 miles, the Silverado, will cost $8,750 in gas.
In 35,000 miles, the Malibu, will cost $5,185.19.
The difference is $3,564.81.
The average miles driven by an American is 15,000 miles per year.
In 15,000 miles, the Silverado will cost $3,750 in gas.
In 15,000 miles, the Malibu will cost $2,222.22.
The difference is $1,527.78.
Spread out weekly.... That's
$29.38 per week!!
That's
$12.38 MORE than estimated by GM!!!!!
GM's math is bass ackwards!!!
