GM Says Hybrids Were Pushed for Public Relations and Politics

With all the problems faced by GM, one would assume they wouldn’t go ahead and shoot themself’s in the foot with this.

Last week, the struggling automotive giant General Motors admitted with a surprisingly candid admission: They apparently created Hybrid vehicles for the sole purpose of improving public relations and perception.

The unusual statement was given by the company’s vice chairman, Bob Lutz. "Hybrids are technologically of doubtful benefit, and expensive, but necessary from a political and public relations point of view," remarked Lutz.

"The reduction in fuel consumption does not pay for the technological content and cost of the vehicle." Nonetheless, the company is attempting to do what it can to help turn the tide in what is undoubtedly viewed as a desperate financial situation.

Lutz’s other comments consisted of…

"Toyota has said, economically, hybrids make no sense. The reduction in fuel [consumption] does not pay for the technological content and cost of the vehicle so therefore economically it remains fairly nonsensical, so that’s the left-brain analytical argument.

The right brain is it’s the popular thing to do, many people believe that if we all drove hybrids the world would suddenly get cooler again and then it’s the patriotic thing to do because if you drive a hybrid you will no longer be funding the Arab terrorists, and so forth.

So, with all those beliefs out there, you have to do a hybrid for public policy reasons."

Lutz believes hybrids are just not cost effective. But then again, GM should consider why they have lost billions of dollars in the past few years.

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