GM stock taking a unnecessary hit? Is there anyone in America, much less the world, that doesn’t know the recession is hurting US carmakers? Duh. Yet the spin doctors at GM announce a reduction in the manufacturing of their most profitable vehicles; the big SUV.
Accordng to Bloomberg News; April 14 (Bloomberg) — General Motors Corp., the world’s largest automaker, may cut production of large sport-utility vehicles and pickups by 23 percent this year amid a supplier strike and dwindling demand, analysts said.
WHAT GM SHOULD HAVE SAID: “WE are INCREASING PRODUCTION of the HYBRID versions of the Chevrolet Tahoe and GMC Yukon, and much awaited Cadillac Escalade Hybrid. Even with gas pushing $4.00 a gal. many consumers refuse to downsize their family/ outdoor recreational activities, so give them what they want…
Edmunds reported these findings in a first road test of the Chevy Tahoe Hybrid: “A full-size hybrid SUV that offers a 3.1-mpg improvement in everyday fuel-efficiency might seem a little self-defeating, like too much iron in a very pale shade of green. But do some math using our observed fuel economy figures and the 2008 Chevy Tahoe Hybrid starts to make sense. If you drive 15,000 miles annually, this innovative two-mode hybrid will consume 149 fewer gallons of fuel per year than its conventional counterpart. This isn’t going to put OPEC out of business, but the 19 percent improvement is substantial enough to climb a few more rungs up the ladder of social responsibility. Do a little more math using the current average U.S. fuel cost and you’ll find that’s also an extra $456 you get to keep in your pocket every year.”
Dealers report sales of the Tahoe and Yukon hybrid moving well. Those who can afford a new vehicle or need to replace an exisiting fleet are looking for their CAKE. So give it to them in a low calorie version.
Is this a buying opportunity? I think so!
Sarah Lee is a 20 yr. automotive executive and author of the book: The complete Internet Car buying Guide. For more information on cars go to: www.mycarlady.com
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