The woes of GM and Ford

Reading yet another article on the woes of the American car manufacturers, I was struck by how their own short-sightedness and reliance on gas-guzzlers has come back to bite them. The generalisation is that the European manufacturers have concentrated on improving fuel efficiency by focusing on diesel, the Asian manufacturers by focusing on petrol, with hybrids taking that a step further in order to compete, seeing as petrol is not nearly as efficient as diesel. (A diesel hybrid anyone?). And the American manufacturers? Nothing at all. American legislation has hardly been progressive, but a state such as California, one of the biggest car markets, and which has been introducing fuel efficiency legislation, has been fought every step of the way by the carmakers. Indeed, the SUV itself has been exempt from fuel restrictions in US legislation by having a separate classification to ordinary cars.

Now, with oil prices going through the roof, the wheel has turned quite quickly. Suddenly Ford and GM are seeing SUV sales slump, increased consumer opposition, and they’re left scrambling, years behind the Asian (in particular Toyota’s) technology.

They’re in an unpleasant situation, with inferior fuel efficiency technology, yet trying to market this aspect. At least this beats what they’ve been doing till now, which is ignore fuel efficiency, and market their giant chemical plant cars in all other ways as hard as they can. I’m sure though they’ll still be campaigning as hard as ever against further legislation, knowing that the stricter the legislation, the more market share they lose.

UPDATE:
Immediately after posting the above, I came across two interesting articles, Neocons Driving Priuses, on the belated embracing by conservatives and the Christian right of energy efficiency, as well as Twilight of the Oil Age, predictions of a US$200 oil price by a conservative energy adviser to Bush-Cheney.