Losing money and not making the grade Delphi has declared bankruptcy and threatens to bring down a major automaker. Meanwhile Japanese automakers have increased their market share by over 3.4% over the last year due to the high fuel costs and the energy savings that these smaller vehicles are said to give. During the Deming years Japanese Automakers taught the gas guzzling US Automakers a lesson. Will we see a repeat of that recent period in the manufacturing of automobiles? Can our nation become more efficient and build cars which save gas? The Japanese competition helped in a way, as it provided the competition to create more efficient fuel economy. Right now the Chinese have introduced a car, which is simple and efficient and they are selling like hot cakes there. Will it be Chinese teach us a lesson here too? Again. The DOE Department of Energy reports show that a, one percent efficiency in fuel equates to a $1.6 billion benefit to the economy. So what happens when you get a 10% boost in fuel consumption? Well that is a 16 billion dollar increase. But did you know that those studies were done when fuel prices were $1.20 per gallon and by the end of the year Americans will be paying $3.60 per gallon, meaning that the new figure equates to $48 Billion dollars. But there is even another issue we are facing now and that is the cost in creases in goods and services for everything we buy. If we increase efficiency we lower our cost of living, meaning increase our standard of living and quality of life. Think on this. |
