Bad Actors in the Automotive Drama

Bad Actors in the Automotive Drama

There are too many bad actors in the automotive drama. Corrupt managers control the Big3. In the late 1990's they sank $1 billion into the development and testing of the EV. They delivered prototypes in California to upscale consumers and trend setters. The EV cars proved superior in every way to gasoline models.
The new autos were pricey primarily because GM included the anticipated fuel savings into the price of the car. It was very unpopular with big oil, as it would have cut the demand for petroleum products. When an alternative comes along, the cost at the pump 'magically' drops. When the Administration suffered from high gas prices, big oil answered the challenge with price reductions. If the Obama Administration seriously pursues alternative power sources, gas and heating oil costs will plummet.
The $700 billions bail out did not encourage the banks to extend credit to consumers and to small businesses. Thus, consumer durable goods markets declined. The drop in demand coupled with a dry up in working capital has led to big lay-offs, a higher unemployment rate and a marked increase in pessimism among consumers and producers.