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Wednesday, April 20, 2005

Well Who's Right?

In the April 21st edition of the Car Connection, Bill Ford is quoted as follows:

[Ford] had been preparing for the shift away from SUVs to more fuel-efficient crossovers and passenger cars and the automaker has invested in the company's future rather than boosting short-term profits.


Contrast this to an Autoweek article with quotes from Bob Lutz and Rick Wagoner:

GM's analysis of fuel availability suggests oil prices should level off at "$40 or $50 a barrel," Wagoner said. "And all of our research says, at that level, people are going to go buy a lot of large utilities. I think that's a pretty good bet to make."


Well who ever is their researcher, he needs to be dragged out into the street and shot. More from Lutz:

At a Morgan Stanley event last month in New York, GM Vice Chairman Robert Lutz told analysts and investors the large SUV segment is strong.

"It's a large and steady market with more than 650,000 affluent, attractive customers," Lutz said.


Umm, but it's a market that is DECREASING ACROSS THE BOARD.

So basically the heads of GM and Ford are doing the EXACT opposite of each other in the face of the same challenge, rising fuel prices. What does that mean? It means that only one of them will be right if fuel prices go up, which it seems they will for the forseeable future. Who will be right? I have no idea, but I sure do have an opinion. Hint: His last name begins with an F.

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