[kbui]

Originally Posted by Viral

Did you guys read the entire article? First off, both Wagoner (before the bailout) and Ford's Bill Ford Jr. both advocated for higher gas taxes in the past. This is not related to "Government motors" or even just GM.

And what he was suggesting was a gas tax in lieu of the increased CAFE standards which will drive prices up on cars by as much as $3500. Anytime you hear "raising taxes", everyone immediately jumps to the conclusion that it's someone trying to reach deeper into your pockets. But the economics here would suggest that increasing the gas tax rather than forcing higher CAFE standards would cause more people to buy more fuel efficient cars, thereby dropping the cost of oil (absorbing much of that tax in lower prices in the long run) and saving you that extra $3500 per car.

Automakers are in a tough "catch 22" right now where they are being forced to make more fuel efficient vehicles at a greater expense to them (to comply with these upcoming CAFE standards), but few people are buying them still, so it's hurting them financially to have to comply. (there have been more than 40,000 camaros so in 2011 vs less than 2,200 volts)

The guy didn't become a socialist overnight. There must be something to that logic regarding CAFE if so many automaker CEOs have pushed for it.

I am reading the same thing here. However, the margins on smaller cars are not as good as the larger vehicles (look at the rebates on these bigger more expensive). Futhermore, pushing for cheaper better gas mpgs cars WILL benefits the Japs and Koreans a lot more than the US companies. Regardless of reality, perceptions with the consumers right now and for the foreseeable future are that JAPs/Koreans make better and more fuel efficient models than US. Pushing for a big gas tax to put the burden on the consumers by the US's CEOs to ease their CAFE's requirements is stupid. Here we go again with another recession. His other comment about the debt ceiling is also typical of a bean counter. Let's continue to spend more than what we have via credit cards/limits...Eventually the debts would just disappear LOL....Personally, I would love to be able to do this: just have a guaranteed 10-20% increase on my credit limit so I continue to spend without the needs to reduce my spending.....