GM says RIP to SUV

This post is brought to you by  Curt Rosengren ~ Passion Catalyst TM   "Love your work. Change your world."

Once upon a time those gasoline-slurping SUV's fairly flew out of the auto dealerships, but with gas prices hovering at $4.00 a gallon, people are looking at the big ol' gas hogs and thinking, "Just say no."

Which, if you happen to be a major auto manufacturer that has relied on those gas hogs for a big chunk of your revenue, poses a bit of a problem.

Today GM announced that it was deep-sixing its longstanding love affair with the SUV, as described in this Wired article.

The company's announcement that it is embracing compact cars, shutting down four truck plants and possibly even dumping Hummer shows GM -- and, by extension, Detroit -- realizes fuel prices aren't coming down and SUVs are a dead-end. It's a fundamental change of direction for the world's largest automaker, which has for more than 10 years counted on pickups and SUVs to provide the bulk of its sales -- and profits -- while all but ceding the passenger car market to Japan and Europe.

Oh sure, it doesn't take the existing SUV's off the road (though gas prices are taking care of some of that), but hey, progress is progress. And unless you happen to work in one of the truck plants GM is shutting down, this is excellent news.

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Comments

[Phil]

I don't really understand how shutting down truck plants can be good news. Not everyone can live with a compact car. My uncle has 5 children- think they can all cram into a Prius? What about my boat? As a Civic going to pull it around?

[Curt Rosengren]

How is this good news? It's an indication that the general public is shifting away from the love affair with big and gas-guzzling.

I think it's a bit of a stretch to go from, "The demand for SUV's has fallen dramatically so GM is shifting their focus away from them as a main staple of their business" to, "There won't be any trucks built any more and those of us who do need them won't be able to get them."

When I look around at the roads and see all the people driving in SUV's - not hauling things, or pulling their boat - it says one thing to me. Waste.

Look at the traffic on the highways, and you'll see the majority of cars have a grand total of one occupant.

Are there instances where a bigger vehicle is called for? Absolutely. Your uncle's situation is a great example. Or your boat. But I think it's more the exception than the rule it has been over the past years as SUV's have sold like hotcakes.

[Damon Clifford]

This isn't good news. It's sad news. It tells me that GM doesn't want to invest in the research to create higher mileage SUV's.

The companies that do invest in the research will succeed because people do still need to pack in their kids. Those consumers will move toward the company than figures it out.

[Adam]

Maybe now that GM is closing 4 truck plants they will stop lobbying against higher fuel economy standards on the basis that it will hurt their business and they may have to close 4 truck plants. It looks like the American consumer is implementing the standards on their own.

[ELMO the Electric Bikes -n- Scooters Guy]

This is just another reason why we need to move as quickly as possible, (much as in the same manner as Kennedy's challenge to get a man on the moon) to alternative energy vehicles.

I know, I know, we wil have to build more electrical plants. B.S!!!

I know of little old engineers that power their cars on solar energy right out of their homes. Don't tell me we aren't smart enough!!!

[JR Enthusiast]

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Here’s the link: harmonicwealth.com/read

[Barry Bernsten]

We can all learn something from what Al Gore had to say the past few weeks. Unless we become self reliant for our energy requirements, we will never again be an independent democratic nation.

We can start with a fundamental change in our driving habits that is now required.

The Automobile Industry is going to be in the same position as the Airline Industry in the next few months. Unless we get away from gas combustion vehicles, including Hybrids, the automobile industry (as we know it) will die.We need to make drastic moves. America needs to move to ELECTRIC. The vehicles are not as fast, not always as fun to drive, but the move will save Americans money (Billions) and help bring change to our automotive companies. Let's "Be Green"!!!!!!!!!!!! BG Automotive Group Ltd. has a car that will travel 80-100 miles per charge for $15,995. Finally a car that most Americans can afford. Did you know that 80% of all drivers, drive less than 50 miles per day? This new car will cost an equivalent of $0.20-0.25 cents/gallon (depending on electricity rates in your area). Why send $700 Billion per year to OPEC (now buying up U.S. companies) when we can use this money for our schools, health care, social security for all Americans, etc, etc, etc. We can make the difference if WE change.

[Barry Bernsten]

We can all learn something from what Al Gore had to say the past few weeks. Unless we become self reliant for our energy requirements, we will never again be an independent democratic nation.

We can start with a fundamental change in our driving habits that is now required.

The Automobile Industry is going to be in the same position as the Airline Industry in the next few months. Unless we get away from gas combustion vehicles, including Hybrids, the automobile industry (as we know it) will die.We need to make drastic moves. America needs to move to ELECTRIC. The vehicles are not as fast, not always as fun to drive, but the move will save Americans money (Billions) and help bring change to our automotive companies. Let's "Be Green"!!!!!!!!!!!! BG Automotive Group Ltd. has a car that will travel 80-100 miles per charge for $15,995. Finally a car that most Americans can afford. Did you know that 80% of all drivers, drive less than 50 miles per day? This new car will cost an equivalent of $0.20-0.25 cents/gallon (depending on electricity rates in your area). Why send $700 Billion per year to OPEC (now buying up U.S. companies) when we can use this money for our schools, health care, social security for all Americans, etc, etc, etc. We can make the difference if WE change.

[John T]

Consumers will buy what they wnat. If they do not want SUV's anymore, well then RIP is the right thing to do. The energy efficiency of SUV's will never be equal that of cars. Any new technology that is developed to increase the efficiency of SUV's can also be applied to cars, so there will always be a difference in gas mileage.

I am (and are many) sick and tired of sending money to foreign countries for their oil, almost at any price. Watching their cities of gold grow at our expense is very depressing. Dubai has cost over $3trillion so far, and still growing, and Dubai is not the only city growing on oil revenues and the subsequent moeny flow through banking.

[scotty]

Discuss Energy Environment Issues :
Energy Environment Forum
It will be great to have you there !

[David Latimer]

Hello, I would like to discuss something with you about your website. Please contact me at dlatimer@maacenter.org at your earliest convenience! Thank you, Dave

[John Moore]

Isn't it good? less pollution from SUV.

[David M Edwards]

It's not just about getting rid of gas guzzling SUVs. It's also about changing our current lifestyle. Yes, people may think they need SUVs to pick up the kids from school and head to the grocery store. But that option won't be around forever. Instead we also need to put our focus on mass transit, and cleaning up the current way we build our communities.

[Efficient Planet]

Forget the economy crisis...

http://www.efficient-planet.com

launches on monday and is advertised to cut 80% off your electricity bill.

[Charles Hamel]

Well I guess if you are in the market for an SUV now, you can probably get one for a good price.

So now we know what motivates people to start conservation, hit them in the pocket books. Now if we raise electricity costs by 100%, maybe we will start seeing more solar panels.

[Rick L.]

Bye Bye SUV'S! I thought I would never say that.
Thanks a bunch, Rick L.

[Organic Grog]

I hope that the SUV goes away and never comes back.

[Sherry]

Not enough credit is being given to the high gas prices this past year and it's serious damage on our economy and society. That one factor alone has caused serious stress in both individuals and businesses. A record number of homes and jobs have been lost as a direct result. And, while we are doing the happy dance around the lower prices at the pumps OPEC is announcing cuts to manipulate the prices upward again. We must get on with becoming energy independent.We can't take another year like this past. There is a wonderful new book out about the energy crisis and what it would take for America to become energy independent. It covers every aspect of oil, what it's uses are besides gasoline, our reserves, our depletion of it. Every type of alternative energy is covered and it's potential to replace oil. He even has proposed legislative agenda's that would be necessary to implement these changes along with time frames. This book is profoundly informative and our country needs to become more informed and move forward with becoming energy independent. Green technology would not only provide clean cheap energy it would create millions of badly needed new jobs. The Book is called The Manhattan Project of 2009 Energy Independence NOW. Our politicians all need to read this book. www.themanhattanprojectof2009.com

[Truck Bed Covers]

I hope the SUV is abolished - for good! They are not necessary (try a minivan instead) because they consume exhorbitant amounts of gas.

Drivers of SUVs tend to be aggressive drivers which is unsafe to other motorists. Ciao to the SUV and good riddance!

[James Fox, The Mojave Hermit]

I'm an 81 year-old WW2 vet and have lived through 10 gallons for a buck to over 4 bucks per gallon and when a Ford sold new for $745.00
I retired as Senior Processing Engineer on Turbo-fan jet engines. And I have an idea about using coal as fuel for autos.
If coal was processed by grinding it into powder finer than talcum powder. It could be injected into a deisel engine. Coal dust is highly explosive and the residual fumes could be filtered to comply with EPA standards. This coal dust could also be used in turbine generators to generate electricity.
Anybody have any similar ideas?

[Electric Cars Gal]

Some comments lament the loss of jobs with the ending of SUV production. But these jobs will be replaced by new jobs in the green auto sector and in the wider green technology industries. What Detroit workers need is support to upskill and match their abilities to what will be required by an emerging alternative energy industry in the coming decades.

[tnomeralc web design toys]

Good post.. I enjoy reading this..

[raivo pommer-estonia.-www.google.ee]

Raivo Pommer-Eesti-www.google.ee
raimo1@hot.ee

Geld

Die Sachsen haben im vergangenen Jahr durchschnittlich 500 Euro mehr verdient als 2007. Das hat das Landesamt für Statistik in Kamenz errechnet. Demnach lag das Pro-Kopf-Einkommen bei 22 565 Euro – ein Plus von 2,3 Prozent. Am wenigsten verdienten die Landwirte, am meisten die Mitarbeiter in der Industrie.

Der Zuwachs lag über der Teuerungsrate von 1,3 Prozent. So nahm auch die Kaufkraft zu. Allerdings erwartet die Gesellschaft für Konsumforschung, dass sie in diesem Jahr durch die Wirtschaftskrise und den erwarteten Jobabbau bestenfalls stagnieren wird.

Im Vergleich zum Westen Deutschlands liegt der Freistaat noch immer deutlich zurück. Die Sachsen verdienten 2008 ein Fünftel weniger als im Bundesdurchschnitt, der bei 27 700 Euro lag. Spitzenverdiener waren die Hamburger mit einem Pro-Kopf-Einkommen von 32 500 Euro.

Seit 2000 hat sich Sachsen kaum noch an den Bundesdurchschnitt annähern können. Der Deutsche Gewerkschaftsbund (DGB) sieht eine Ursache in der geringeren Tarifbindung. In den neuen Ländern würden 60 Prozent der Arbeitnehmer nach Tarif bezahlt, in den alten mehr als 75 Prozent. „Das ändert sich aber gerade, was wir auf den drohenden Fachkräftemangel zurückführen“, sagte DGB-Sprecher Markus Schlimmbach. Langfristig würden sich die Löhne und Gehälter daher angleichen müssen.

[run your car on water]

i do not think this is a good idea for gm. you should stay with them. just get better mileage.

[raivo pommer]

raivo pommer-www.google.ee
raimo1@hot.ee

Europe's largest bank, HSBC Holdings,

confirmed on Monday it was considering selling three of its major office buildings and said it
had received interest from potential buyers.

HSBC, which recently raised nearly $19 billion in a rights issue, said it may sell and lease-back office buildings in New York, Paris and London, including its headquarters at Canary Wharf.

London's Sunday Telegraph reported that HSBC was considering selling three of its biggest office buildings to raise 2.7 billion pounds ($3.98 billion).

"We are taking a look at the market, yes," spokesman David Hall said in Hong Kong.

"There are people interested in buying at an appropriate price," Hall said.

He declined to give further details.

HSBC bought back its building at Canary Wharf for 838 million pounds from ailing Spanish property firm Metrovacesa at the end of last year after the Spanish firm failed to refinance a loan secured on the building.

Globally, banks battered by the financial crisis have been looking to shed non-core assets in order to raise capital and improve their balance sheets.

"HSBC has just raised funds from a rights issue and the possible sale of offices could further boost its cash level and thus benefit the bank in its future acquisitions," said Alex Tang, head of research at Core Pacific-Yamaichi International.

The bank, which planned to shut most of its U.S. consumer lending business, said last month that it was ready for acquisitions in its traditional stronghold of Asia where many banks are pulling out to focus on core markets.