The other thing is, I think especially among the politicians more in the left end of the political spectrum, they adhere to the age-old belief that people will buy whatever we advertise, and that we have the power to direct consumer demand. And if we would stop advertising trucks and start advertising small fuel-efficient cars, we could make the country want the other thing!
Of course, one would wish that advertising had that power!
Trying to force something on the American public, that the American public doesn't want, all the advertising money in the world can't make it happen. But there is this belief that we can direct what people want.
Don't forget that most of these people who are passing these laws have never spent a day working in an industry or in a business. Most of their backgrounds are lawyers and most have been professional politicians for most of their whole life. So you can't blame them for not knowing how things really work!
So it's the feeling that we can direct demand. It's the feeling that this is all not true: that we can do it and that it will not cost very much. And, there is a third feeling: that if you build it, they (the customers) will come. If we do these things and put them out in front of the public, and because the New York Times will do a terrific article about how wonderful this car is, then the presumption is that everybody will go buy it. And of course they won't!
Just look at what happened to the Toyota Prius recently. Start of the year at $4 a gallon: it was sold out. Toyota was going to put in a plant in the US to build specifically Prius. Last six months of the year: Prius plant canceled and Prius sales down 50%. And we're having trouble moving our hybrids as well. Everybody is having extreme difficulties selling hybrids. A statistic on the Honda Civic I got from Automotive News: in June or July, at the peak with gasoline at $4,25 a gallon, Honda sold 57,000 Civic in the United-States in one month. In November, they did 7,000.
It's not only hybrids; it (this trend) also affects small cars. Early in 2008, we could not build enough Cobalts and HHRs. The minute gasoline (price) drops, nobody wants Cobalts and HHRs anymore. Everybody wants Impalas and Tahoes, frankly. And people say: "Hey! I like it. I've got a big family. I tow a boat. As far as I'm concerned, gasoline can go to $3 a gallon, I don't care. I'm still going to buy a Tahoe! »
photo:Matthieu Lambert
Of course, one would wish that advertising had that power!
Trying to force something on the American public, that the American public doesn't want, all the advertising money in the world can't make it happen. But there is this belief that we can direct what people want.
Don't forget that most of these people who are passing these laws have never spent a day working in an industry or in a business. Most of their backgrounds are lawyers and most have been professional politicians for most of their whole life. So you can't blame them for not knowing how things really work!
So it's the feeling that we can direct demand. It's the feeling that this is all not true: that we can do it and that it will not cost very much. And, there is a third feeling: that if you build it, they (the customers) will come. If we do these things and put them out in front of the public, and because the New York Times will do a terrific article about how wonderful this car is, then the presumption is that everybody will go buy it. And of course they won't!
Just look at what happened to the Toyota Prius recently. Start of the year at $4 a gallon: it was sold out. Toyota was going to put in a plant in the US to build specifically Prius. Last six months of the year: Prius plant canceled and Prius sales down 50%. And we're having trouble moving our hybrids as well. Everybody is having extreme difficulties selling hybrids. A statistic on the Honda Civic I got from Automotive News: in June or July, at the peak with gasoline at $4,25 a gallon, Honda sold 57,000 Civic in the United-States in one month. In November, they did 7,000.
It's not only hybrids; it (this trend) also affects small cars. Early in 2008, we could not build enough Cobalts and HHRs. The minute gasoline (price) drops, nobody wants Cobalts and HHRs anymore. Everybody wants Impalas and Tahoes, frankly. And people say: "Hey! I like it. I've got a big family. I tow a boat. As far as I'm concerned, gasoline can go to $3 a gallon, I don't care. I'm still going to buy a Tahoe! »
photo:Matthieu Lambert