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Saturday, April 02, 2005

Big 3 Sales Down

It seems that every week one of these announcements is made. American manufacturers' sales are down. And of course the cost of fuel is mentioned as a reason.

Why does the mainstream media refuse to acknowledge the possibility that perhaps, just perhaps, that the earth is running out of oil? The only manufacturers who are readily building fuel efficient cars for the American market are Japanese. Where are the hybrids from Nissan, GM, Chrysler, or any European manufacturer? Where are the high quality small cars? Mustang sales alone are not going to save Ford, when that company is completely dependant on F-150 and Explorer sales to keep it solvent. And the fact that much of the Mustang's profit comes from the gas guzzling v8 doesn't help things.

Companies need to wake up and face reality. I can't believe that highly paid, highly educated executives who have worked in the business for decades lack a complete knowledge of the oil market. For General Motors, Mercedes, and Nissan to invest billions in new heavy SUVs and pickups is just mind boggling. The price of oil is not decreasing any time soon, and the national average will be 2.50 by this summer driving season. Don't believe me? Invest 500 dollars in stock of any major gasoline distributor. I guarantee you in six months that stock will grow at least 50 percent in value as they rake in the profit. There just isn't any more oil in the world to feed the demand of a growing American, Chinese, European, and Indian economy together. There just isn't.

In the meantime before we jump to an alternative fuel in two decades, we need something to get by. Be it hybrids, completely battery powered, or alcohol, investments need to be made. The companies that don't invest will be goners. It's as simple as that.

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