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Re: [RAV4-EV] GM: $39 Billion Loss Biggest Ever; Tax Incentives Not Working

[Default] On Wed, 7 Nov 2007 18:23:30 GMT, "Dave Goldstein"
<[email protected]> wrote:

>GM has just reported it's biggest ever quarterly loss,
>surprising analysts and causing the stock value to drop
>precipitously. GM's CEO Rick Wagoner blames mortgage-related
>losses and GM's inability to reverse its losses by utilizing
>tax credits.

Too bad GM has been blowing off signals of consumer demand, such as we
had sought to bring to his attention.

>According to one analyst, "This all suggests that GM thinks
>that things are so ugly out there that they can't see the
>possibility of profitability for many quarters, maybe even
>years . . ."

I wonder what Mr. Wagoner has to say about the fact that Toyota seems
to be doing just-fine-thanks.


>Further, even if GM survives, their weakened financial
>condition may inhibit their ability to invest the billions
>of dollars it will take to tool up and produce the millions
>of new-generation vehicles needed to *begin* to impact
>America's 230 million vehicle fleet of gas guzzlers, which
>now average less than 25 mpg.

I support your focus on these issues and on keeping in mind the total
size of the US fleet. I think it is worth drawing attention to the
global macro-eeconomic issues and questions here, such as what
vehicles are on the road using fuel, what happens to those vehicles
when the price of fuel changes, and what will be done with vehicles
when they are retired and recycled. When there are so many vehicles
on the road that use petroleum-based fuels, then we can assume a
momentum, for a certain number of years, in the demand for those
fuels. However, some of that can be mitigated if people simply stop
driving some of those cars as much, and accept that those vehicles
have a lower value, as vehicles that use an unacceptably high-priced

These days, "alternative energy" is rightly a hotter topic than it
used to be. I think "waste disposal and recycling" is an
under-discussed topic and hopefully as well. Although waste disposal
is sometimes discussed by those of us who focus on energy
(waste-to-energy plans), I think this is only a moderate part of the
big picture for questions concerning how we will make our world more

Although some progress has been made, I think, in questions concerning
how cars are built to be recycled, there will still be a question of
what we are going to do if we decide that we need to severely revise
the fleet that we have. Maybe we'll just park many of them?
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