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1.10.2011

Car maker dilemma

It looks like the Big3 Detroit automakers are betting on electic cars. Based on the experience of the last couple of years, it seems consumers will buy them...but only if oil is expensive. If oil is cheap, North American consumers will prefer trucks and SUVs (vehicles that are clearly not the focus of the attention at the 2011 Detroit Auto Show). Could it be then that the big 3 are secretly hoping for expensive oil? Say they get what they wish for and start selling electric vehicles like hot cakes, won't that be their success and their demise both? Cause the more electric cars they sell the higher the likelihood oil demand (and prices) will dwindle.

Yet another example of how long term business planning will be extremely difficult in a Peak Oil world.

Oh..and where will the electricity to power this fleet of vehicles come from again?

PCGM

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