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Old 01-13-2010, 08:06 PM   #1
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Nail in the Coffin for GM?

Some of you may know, or may not know of the latest stint GM just pulled. Basically they are asking for an increase in the Federal Fuel Tax because people are "buying bigger vehicles again". It's being reported that GM's ulterior motive is to raise taxes because they haven't been having much interest in the new Chevy Volt and higher gas prices would cause such sales to increase when they debut it in fuel as well as stimulate pre-orders right now.

All I have to say is GM, you can take your Tax Increase request and SHOVE IT!

Here's an article for you on this:

Quote:
Washington Examiner

GM chief wants higher federal gas tax
By: Mark Tapscott
Editorial Page Editor
01/12/10 8:45 AM EST

It's International Auto Show time in Detroit, so senior executives from automakers around the world are in the Motor City this week showing off their latest wares, including concept vehicles that may or may not give hints to their future products, and making pronouncements on topics far and wide.
So you never know what to expect in the way of news from Detroit. Take, for instance, Ford's announcement yesterday that due to growing demand, it is ramping up production of two of its least fuel-efficient products, the Ford Expedition and Lincoln Navigator SUVs.

Expedition sales are up 45 percent, compared to a year ago, while Navigator sales have climbed fully 60 percent for the same period, according to Ford Americas president Mark Fields. He was quoted by Automotive News, the trade publication.

But over at Government Motors - formerly known as General Motors - one of its most gregarious and visible executives is calling for a hike in the federal gas tax.

"You either continue with inexpensive motor fuels and have to find other ways to incent the customer to buy hybrids and electric vehicles, such as the government credits," Lutz told journalists at the show yesterday, according to CNN Money. "Or the other alternative is a gradual increase in the federal fuel tax of 25 cents a year, which in my estimation would have the benefit of giving automobile companies a planning base, and giving families that own vehicles a planning base."

Lutz expressed frustration that buyers react so quickly to changes in gas prices: "Every time gas prices go back down, everybody starts buying big stuff again. Gas prices go up a buck, the big stuff is unsellable and everyone wants small cars. Go figure. It's like the collective memory is about three weeks long. We can't run a business that way."

Lutz may have an ulterior motive in calling for a federal gas tax increase. He has been a vigorous advocate within GM for the Chevrolet Volt electric plug-in that will be unveiled this fall. Making gas more expensive would tend to help sales of vehicles like the Volt because they use less gas than conventional vehicles.
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Old 01-13-2010, 08:07 PM   #2
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Another Article:

Quote:
CNN Money

DETROIT (CNNMoney.com) -- Bob Lutz is generally not a close ally of environmentalists.

The vice chairman of General Motors is a frequent critic of fuel economy rules and once declared that global warming was a "total crock" of excrement, although he used a more common and colorful word in that description.

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GM Vice Chairman Bob Lutz with Chevrolet's electric hybrid Volt.
Lutz also declared in 2004 that hybrid cars didn't make sense to sell or buy. And just this week, as he and GM were hyping the new electric Chevrolet Volt, at Detroit's North American International Auto Show, he declared that internal combustion engines would dominate the auto industry for the next 20 years, no matter what advances were made in electric vehicles.

So Bob Lutz wouldn't seem a likely candidate to argue for significantly higher gasoline taxes, or to suggest that such taxes would be a good thing for the auto industry. But in a meeting with journalists at the auto show Monday, he did just that.

"If the rise in gasoline prices is gradual, I think that all of us in the industry would frankly welcome that, because there is nothing more illogical than forcing fuel-saving technology when gasoline is extremely cheap," he said when asked about any concerns about oil again rising above $80 a barrel.

Lutz was asked if that means he would favor higher gasoline taxes, as in Europe where taxes drive fuel to more than $5 a gallon. He said he couldn't speak for GM, but he said he saw a lot of value in a steady tax rise to much higher levels.

Driving the Volt when the juice runs dry
"You either continue with inexpensive motor fuels and have to find other ways to incent the customer to buy hybrids and electric vehicles, such as the government credits," he said. "Or the other alternative is a gradual increase in the federal fuel tax of 25 cents a year, which in my estimation would have the benefit of giving automobile companies a planning base, and giving families that own vehicles a planning base."

Lutz said if a car buyer knew that gas that costs $2.75 a gallon today would likely go to $3 next year and $3.25 the year after that, it would prompt some buyers to say: "You know sweetheart -- this time we should go one size down because we know what fuel is going to do."

The biggest problem hitting automakers from rising gas prices, Lutz said, is the fact that consumer preferences change suddenly when gas prices rise and fall, which makes it impossible to match supply of vehicles to demand.

"Every time gas prices go back down, everybody starts buying big stuff again. Gas prices go up a buck, the big stuff is unsellable and everyone wants small cars. Go figure," he said. "It's like the collective memory is about three weeks long. We can't run a business that way."

But the chances of Washington following Lutz's recommendation are slim to none, let alone his finding support for his argument elsewhere in Detroit.

Transportation Secretary Ray LaHood, who spoke at the auto show Monday morning, said that the Obama administration was not considering any rise in gasoline taxes. And House Speaker Nancy Pelosi also dismissed the idea at a press conference at the show Monday afternoon, saying there was no support in Congress for an increase gas tax.

Lutz said he's not surprised the idea isn't likely to go anywhere.

"Fuel taxation is the third rail of politics," he said.
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Old 01-13-2010, 08:09 PM   #3
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Also Lutz is a complete hypocrite after he said back in 2004 that Hybrid Cars make no sense!
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Old 01-13-2010, 08:10 PM   #4
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Well Hybrids really are stupid, but so is Lutz!!
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Old 01-13-2010, 08:13 PM   #5
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who loves socialism?
seems like GM does
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Old 01-13-2010, 08:15 PM   #6
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If they raise fuel taxes I'm going rogue
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Old 01-13-2010, 08:15 PM   #7
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Originally Posted by arrestmespi View Post
If they raise fuel taxes I'm going rogue
I'll join you in your tank
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Old 01-13-2010, 08:26 PM   #8
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Why should I have to drive some little girly car or some absolutely piece of boring fail like the prius, because a bunch of idiots couldn't run a auto company for shit. We should have let them fail.
Diesel is almost $3 a gallon now because of heating oil demand, JP-8 is around $5 a gallon K-1 is $4 a gallon, and the smegma that is gasoline is about $2.75 a gallon. And they want to raise prices because they want control over a buying public. I want a big ass truck, I know fuel prices fluctuate by I'll be damned if I'll pay more taxes on it.
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Old 01-13-2010, 08:30 PM   #9
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^^^^^^^

I agree........way to go GM ---big THUMBS up for that ---flipping idiots
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Old 01-13-2010, 08:37 PM   #10
You like this.
 
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GM is full of bad decisions lately aren't they...
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