Why is the US Auto Industry so slow to change? Well there are many reasons for this and the biggest reason is that SUVs are very high-profit cars to sell. The average profit on an SUV could be five times that of a regular car and if the Automaker is to continue to impress Wall Street they need profits not just sales numbers. Currently in the United States they are selling approximately 17 million cars but there is no way they can sell 85 million cars and so if they do not have some high-profit sales in there, they cannot make their profit numbers. Remember building cars is a business and that means that these giant corporations need to make money, as it is all about shareholder's equity and quarterly profits and if they fail to hit their numbers the stock price will plummet and their credit rating will be junk. There are some major tough choices for the US Automakers and none of them right now look so enticing. But several of the choices down the road could be quite good for US Automakers and the country in the long run. Many people are asking where are the US Automaker Hybrids? In fact I myself would buy one if they were available. Wouldn't it be cool to have US Technology backing your car, which got some 80-100 miles per gallon and could run on gasoline or ethanol? That would be something and indeed it will happen, just not in the next few years that's all. Consider all this in 2006. |
