Comments on: This Man Should Quit Politics and Become an Entrepreneur

By: wavemaker

wavemaker — Thu, 01 Jun 2006 13:17:02 +0000

I would assume that the auto makers know more about what drives consumer choice than Mr. Boehlert. Sure, when gas prices hover at $3.00/gal for a while, more consumers elevate fuel-efficiency in the rank of what they are seeking in a vehicle in additioon to size, design, color, comfort, status, etc. But if my instinct is correct, the majority of Americans will continue to focus on size, comfort and status and just grumble at the pump.

By: markm

markm — Wed, 31 May 2006 17:04:26 +0000

“If a sufficient number of consumers truly are willing to pay for more-fuel-efficient cars (as Rep. Boehlert asserts), surely at least one of the 20-plus automakers now supplying new cars to the U.S. market would discern this fact — and, out of pure self-interest, act to satisfy this consumer demand.” Back before there were any CAFE standards, there were in fact at least two brands in the US that specialized in tiny fuel-efficient cars: Volkswagon and Rambler, which was the flagship brand of American Motors at the time. Under CAFE standards, VW’s have evolved to look like any other car, and American Motors went out of business.

By: John

John — Tue, 30 May 2006 16:51:46 +0000

Actually, there is no reason that , just because some segment of the market desires a product, that an existing (or for that matter a new) producer will spring to meet the perceived demand. Lots of reason why not, including capacity, regulatory issues, lead/lag time to market, insufficient projected profit,
etc. etc.

I agree that it is not the “classic” market failure. It is, however, a failure of the market to meet a demand. Whether this is a good or a bad thing remains to be seen. But it is not clear (and I do not believe it to be the case) that the only reason that there are not more fuel efficient cars is because of lack of demand.

By: Steve White

Steve White — Mon, 29 May 2006 23:28:26 +0000

Forgive me if I’m wrong on this, but don’t each of the major automakers already make at least one small, fuel-efficient car that consumers may buy? I looked through the Memorial Day car ads and noticed that some car makers, like GM and Toyota, offer several such cars. If the demand is there, all the carmakers need do is ramp up the production of these cars (and perhaps offer more models).

Rep. Boehlert seems to have missed this, but I’m not sure how best to point it out to him. Do the moderators perhaps own a clue x 4?