Wednesday, May 31, 2006

Get Hooked on Gas - GM Is Your Pusher

In today's New York Times, Thomas Friedman writes about GM and its latest atrocity.


Strong language? Maybe - but not undeserved.

Friedman is behind the Times Select wall, so for those of you who aren't subscribers, here's the main point:

Is there a company more dangerous to America's future than General Motors? Surely, the sooner this company gets taken over by Toyota, the better off our country will be.

Why? Like a crack dealer looking to keep his addicts on a tight leash, G.M. announced its "fuel price protection program" on May 23. If you live in Florida or California and buy certain G.M. vehicles by July 5, the company will guarantee you gasoline at a cap price of $1.99 a gallon for one year — with no limit on mileage. Guzzle away.

As The Associated Press explained the program, each month for one year, G.M. will give customers who buy these cars "a credit on a prepaid card based on their estimated fuel usage. Fuel usage will be calculated by the miles they drive, as recorded by OnStar, and the vehicle's fuel economy rating. G.M. will credit drivers the difference between the average price per gallon in their state and the $1.99 cap." Consumers won't get any credits if gas prices fall below $1.99.

"This program gives consumers an opportunity to experience the highly fuel-efficient vehicles G.M. has to offer in the mid-size segment," Dave Borchelt, G.M.'s Southeast general manager, said in the company's official statement. Oh, really?

Eligible vehicles in California include the 2006 and 2007 Chevrolet Tahoe and Suburban (half-ton models only), Impala and Monte Carlo sedans, G.M.C. Yukon and Yukon XL S.U.V.'s (half-ton models only), Hummer H2 and H3 S.U.V.'s, the Cadillac SRX S.U.V., and the Pontiac Grand Prix and Buick Lucerne sedans. Eligible vehicles in Florida include the 2006 and 2007 Chevrolet Impala and Monte Carlo, Pontiac Grand Prix and Buick LaCrosse.

Let's see, the 6,400-pound Hummer H2 averages around nine miles per gallon. It really is great that G.M. is giving more Americans the opportunity to experience nine-miles-per-gallon driving. And the hulking Chevy Suburban gets around 15 miles per gallon. It will be wonderful if more Americans can experience that too — with G.M.-subsidized gas.

Our military is in a war on terrorism in Iraq and Afghanistan with an enemy who is fueled by our gasoline purchases. So we are financing both sides in the war on terror. And what are we doing about that? Not only is GM subsidizing its gas-guzzlers, but not a single member of Congress, liberal or conservative, will stand up and demand what most of them know: that we must have some kind of gasoline tax to compel Americans to buy more fuel-efficient vehicles and to compel Detroit to make them.

And Friedman points out the most obscene part of all: GM is trying to hook soldiers on their product. "Just show your military ID!" and get a $500 discount on one of these things. A nice little vicious circle - squander the gas you're dying for.

Have they no shame?

And can anyone claim in the face of this and its almost countless analog decisions that corporations care about anything at all besides their own personal profits?

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