The Big Three Choke On Their Own Trucks |
| Published: May 22, 2008, 6:11 pm |
| Tags: trucks and suvs, big three, oil prices, automakers |
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It should have been obvious: a car company heavily selling gas-guzzlers would hit a snag when oil prices flew off the charts. However, the good people at Ford are having some problems coming to grips with that very idea.Where did it all go wrong?The Big Three (Ford, General Motors, and Chrysler) were riding high on the SUV wave (which sounds like an incredibly dangerous metaphor) for years. Very profitable times for them and they 'practically' put all their eggs in one basket. I guess you could call that a 'bad idea'. You see, the profit margins on SUVs and big trucks are significantly higher than compact and 'economy sized' cars. The bigger the truck, the more people were willing the spend on it, the cheaper it was to make, the more people wanted it - a nice little cycle. But now don't even mention the profit margins on those 'San Francisco-lifestyle' hybrids to these guys. It was hard enough getting them to, only now in the past few years, jump on the hybrid/alt-fuels bandwagon.In [ Full article ] |
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