Comments on: GM & the Fed http://markryman.com/BLOG/2009/07/10/gm-the-fed/ People taught by God Fri, 13 Aug 2010 16:19:20 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: jawildman http://markryman.com/BLOG/2009/07/10/gm-the-fed/comment-page-1/#comment-1100 jawildman Fri, 10 Jul 2009 12:24:51 +0000 http://markryman.com/BLOG/?p=607#comment-1100 I saw an interesting analysis of how the new CAFE (mileage) standards basically guarantee GM's demise. Their most profitable vehicles all fail to meet the standards. But unlike Toyota, they don't sell lots of efficient cars to balance out the big ones. So in order to meet the new standards, they have to stop selling the profitable ones, and shift to small cars where they've never been able to compete with Honda and Toyota. And they aren't allowed to import their own (GM's) efficient cars from China either. bummer, batman... Oh, and in order for the taxpayers to get all the money back (as of today), GM's stock price has to got higher than it has ever been. riiiight... I saw an interesting analysis of how the new CAFE (mileage) standards basically guarantee GM’s demise. Their most profitable vehicles all fail to meet the standards. But unlike Toyota, they don’t sell lots of efficient cars to balance out the big ones. So in order to meet the new standards, they have to stop selling the profitable ones, and shift to small cars where they’ve never been able to compete with Honda and Toyota. And they aren’t allowed to import their own (GM’s) efficient cars from China either. bummer, batman…

Oh, and in order for the taxpayers to get all the money back (as of today), GM’s stock price has to got higher than it has ever been. riiiight…

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