I wanted to address the higher fule milage issue in a separate e-mail.   I heard the most rediculous presentation from GM on this issue.    It was made by Dr. Tom Walton at the Fed Reserve Bank energy conference on March 14 2005.   (you asked for sources)

Dr Walton argued why it was bad for the USA to have higher gas milage in cars.   Think about that for a second.   Bad to have higher gas milage.

His logic was that higher gas milage would lead to more people driving which would cause more traffic congestion and more polution.   In addition, any oil that would be saved would be from the USA and therefore cut our USA oil production which would cost more jobs.    I couldn't believe the insanity of this argument.

That is like saying people should not eat healthy because it would hurt the junk food industry and than people would live longer which would cost more in Social Security benefits.

That is the thinking at GM.   No wonder they lost a billion dollars this last quarter.


PS:   Every other presenter posted their presentation on the Fed Reserve Bank web site for the conference except GM.