Americans Are Fickle

A few months ago, a buyer would have to wait in line to get a hybrid automobile. The automakers couldn't make them as fast as buyers were snapping them up, and some dealers were even charging more than the sticker price and selling all they could get. A dealer was lucky to have a few days worth of hybrids in stock. That was because the price of gasoline was approaching $4 a gallon.

Americans were flocking to dump their gas hog SUVs and get a hybrid or a smaller car that would get more mileage. Many found themselves paying far too much at the pump and it was seriously cutting into their lifestyle. But that was a few months ago. Things have changed.

The price of gasoline has dropped back to less that $2 a gallon in most places, and car dealers are finding that no one wants a hybrid anymore. The dealers now have a several months supply on their lots. Where they were charging above sticker price, they are now actually offering substantial discounts to get buyers to purchase a hybrid. And even with discounts, the sales are very slow.

With cheap gas at the pumps again, Americans are once more opting for the huge SUVs. While all auto sales are down because of the economy, an SUV will move off the lot faster than a hybrid these days. Americans are acting like the cheap gas is here to stay.

Of course, it isn't. As soon as they can justify it (and that probably won't be long), the oil companies will begin to creep the price back up. They like those record profits they've been making, and they're not about to give them up. One thing you can count on is the oil companies going for ever increasing profits each year. Another is that someday soon the oil will begin to run out.

Then, once again, people will be trying to dump the gas hogs (and taking a beating on them because no one will want them). Hybrids will again become the hot ticket item. It's just a matter of time.

A smart buyer would take this opportunity to buy a hybrid at a discount right now.

Is General Motors Really Trying ?

Last month, the General Motors Corporation (GM) went to Congress and begged for a multi-billion dollar bailout to keep their company from going under. Even though most Americans believed GM had created their own problems by the bad decisions they made, the bailout was granted.

For years, GM had built ever larger gas-hogs as oil prices rose and their foreign competitors opted for smaller more fuel-efficient cars. Then last year, Toyota overtook GM, and for the first time ever, become the biggest seller of cars worldwide. As oil prices spiked, GM was left holding the bag with their gas-hogs, and the company was in deep trouble. They assured Congress and the American people that they had learned their lesson and would change their ways, in return for the bailout.

The American people didn't like it, but they went along with the bailout to save millions of American jobs. After all, GM had learned their lesson hadn't they? Or had they?

This week, because the gas prices had gone down, GM announced they were once again increasing production of their expensive gas-guzzling Sport Utility Vehicles (SUV). They are increasing production of these SUVs, while laying off workers at the same time in other plants -- cutting 1200 jobs in Michigan and 800 jobs in Ohio. Do they really think Americans are going to flock to buy these expensive gas-guzzlers just because gas prices gave fallen?

Someone needs to tell these dummies that the only reason gas prices have fallen is because no one can afford to buy it. This country is losing around 200,000 jobs a month, and that may go on for a while. If GM wants to once again become the car of the masses, and not just the rich, they're not going to do it with SUVs. I have to wonder if they've learned anything at all.

At the same time that GM is increasing production of SUVs, Toyota announced they are considering bringing their smallest car to America. The Toyota iQ (pictured above) is 10 feet long, holds 3 adults and a child, gets over 50 miles to the gallon of gas and costs a hell of a lot less than an SUV. Which company do you think sees the reality of a world slipping into depression?

I'm very disappointed in GM. With their current viewpoint, it's only a matter of time before they're asking for another bailout. Unless things change, they won't deserve it.