"... positive news for General Motors Corp. ..."In the
news: (excerpts, emp add)
Big engines stay popular despite gas spike
U.S. consumers bought vehicles with big, gas-guzzling engines at an unchanged rate in the first three months of the year despite rising gas prices, according to a survey released on Monday.
That market share level for V8s -- typically the most powerful engines used in trucks and large sport utility vehicles -- was unchanged from the average of 25 percent in the fourth quarter, according to the Power Information Network.
If that trend holds, it would be positive news for General Motors Corp., which has staked its product strategy this year to the launch of a new line of SUVs, including the Tahoe and the Yukon, which run on V8 engines.
That's the strategy, folks.
posted by Quiddity at 4/24/2006 09:25:00 PM
GM is screwed. They have decided that this "SUV thing" will be a huge moneymaker. Except they are late to the game and are going to get skullf*&ked.
I asked a GMAC rep about small cars like Smart cars and he said that "the guy (sure) who can afford an SUV can afford to pay whatever it costs to fill the tank".
But I mentioned that in the 70's people could still afford to drive Cadillacs. The reason they stopped was because it became very uncool to drive them. VW Bugs were hot, and anybody driving a land boat was seen as a dinosaur and was laughed at.
All that may be true but things don't come crashing down until the credit crunch hits. When interest rates rise and household debt becomes more unmanagable then GM will sink like the Titanic.
