GM Responds to price capping gas

Jeffbx · 06-02-2006, 12:07 PM

I know, I'm tempting the wrath of GAM by re-opening this, but I thought it was a good response from GM about the fuel card rebates in California & Florida:

Quote:

Originally Posted by Steven J. Harris, VP of Global Communication at GM

And exactly how is offering a gas card that may be worth $1,000 any different or more sinister than the $2,000 cash rebate that Toyota's offering right now nationwide on its full-size SUV, the Sequoia? The Sequoia, by the way, gets worse mileage than any of GM’s industry-leading full-size SUVs.

(snip)

In fact, GM offers more vehicles that get 30 mpg or better EPA highway mileage than any other automaker. More than Toyota. More than Honda. More than Nissan.

The whole article

InfiniteNothing · 06-02-2006, 12:17 PM

I didn't think the gas rebate was really the issue as much as the gas price cap. A gas price cap encourages more fuel use because the more you use, the more you feel like you got a good deal from GM.

With a gas rebate (and the gas cap to some degree) it's kinda like a gift card. If I have a gift card to Target, I'm likely going to shop at Target as much as possible to use up my gift card.

Jeffbx · 06-02-2006, 12:32 PM

Eh, I dunno if I agree with that. I can see if you have an Amazon or Target or whatever gift card that you're likely to blow it on something you might not need (Lord knows that's what I would do). But I fail to see the correlation with fuel usage. I mean, whether gas is $.99 or $2.99 or $4.99, I'm still going to drive to work every day, I'm still going to drive to the grocery store & the movie theater, etc. I don't think the cost of gas makes much of an impact in everyday driving patterns.

InfiniteNothing · 06-02-2006, 01:10 PM

That is atypical behavior. When gas prices go up leisure travel goes down. Suddenly the Indian casino sounds better than Vegas.
Apparently demand curves slope down and supply curves still slope up.

Markel · 06-02-2006, 02:41 PM

Quote:

Originally Posted by Jeffbx

I know, I'm tempting the wrath of GAM by re-opening this....

Wow! You really like living dangerously, don't you!?!?!

guiseppewv · 06-02-2006, 02:59 PM

Quote:

Originally Posted by Jeffbx

I know, I'm tempting the wrath of GAM by re-opening this, but I thought it was a good response from GM about the fuel card rebates in California & Florida:

The whole article

One of the problems with this article is that although GM produces more models that get over 30 mpg some of those models are the exact same cars with a different body and different badge. Plus GM has a lower fleet mpg rating than Honda, Toyota, Subaru, etc.... Fleet mpg rating is calculated by adding the mpg rating of every vehicle sold and then dividing that by the # of vehicles sold.

Markel · 06-02-2006, 03:21 PM

Quote:

Originally Posted by guiseppewv

One of the problems with this article is that although GM produces more models that get over 30 mpg some of those models are the exact same cars with a different body and different badge. Plus GM has a lower fleet mpg rating than Honda, Toyota, Subaru, etc.... Fleet mpg rating is calculated by adding the mpg rating of every vehicle sold and then dividing that by the # of vehicles sold.

What would you expect? GM to post an unbiased reply? As soon as I saw that GM had authored the response, I put on my BS-filter glasses.

InfiniteNothing · 06-02-2006, 04:27 PM

Quote:

Originally Posted by guiseppewv

One of the problems with this article is that although GM produces more models that get over 30 mpg some of those models are the exact same cars with a different body and different badge. Plus GM has a lower fleet mpg rating than Honda, Toyota, Subaru, etc.... Fleet mpg rating is calculated by adding the mpg rating of every vehicle sold and then dividing that by the # of vehicles sold.

You wouldn't happen to have the actual numbers would you?

Jeffbx · 06-05-2006, 06:48 AM

Actual numbers (as of 03/2004) - http://www.nhtsa.dot.gov/cars/rules/cafe/CAFEData.htm

GM ain't all that.

06-02-2006, 12:17 PM	#2
InfiniteNothing Chief of Naval Operations Join Date: Aug 2002 Location: San Diego Posts: 10,086	I didn't think the gas rebate was really the issue as much as the gas price cap. A gas price cap encourages more fuel use because the more you use, the more you feel like you got a good deal from GM. With a gas rebate (and the gas cap to some degree) it's kinda like a gift card. If I have a gift card to Target, I'm likely going to shop at Target as much as possible to use up my gift card. Last edited by InfiniteNothing : 06-02-2006 at 12:20 PM.

06-02-2006, 01:10 PM	#4
InfiniteNothing Chief of Naval Operations Join Date: Aug 2002 Location: San Diego Posts: 10,086	That is atypical behavior. When gas prices go up leisure travel goes down. Suddenly the Indian casino sounds better than Vegas. Apparently demand curves slope down and supply curves still slope up. Last edited by InfiniteNothing : 06-02-2006 at 01:13 PM.

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06-02-2006, 12:32 PM	#3
Jeffbx Fleet Admiral Join Date: Mar 2000 Location: Michigan Posts: 9,390	Eh, I dunno if I agree with that. I can see if you have an Amazon or Target or whatever gift card that you're likely to blow it on something you might not need (Lord knows that's what I would do). But I fail to see the correlation with fuel usage. I mean, whether gas is $.99 or $2.99 or $4.99, I'm still going to drive to work every day, I'm still going to drive to the grocery store & the movie theater, etc. I don't think the cost of gas makes much of an impact in everyday driving patterns.

06-05-2006, 06:48 AM	#9
Jeffbx Fleet Admiral Join Date: Mar 2000 Location: Michigan Posts: 9,390	Actual numbers (as of 03/2004) - http://www.nhtsa.dot.gov/cars/rules/cafe/CAFEData.htm GM ain't all that.

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