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Old 12-07-2005, 02:49 PM
adios adios is offline
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Join Date: Sep 2002
Posts: 2,298
Default Re: So *that\'s* what they mean by \"Apollo program for energy\".

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Car manufacturers goals are to produce the highest quality inexpensive cars they can so that they can create good profit margins. This goal is not in line with reducing the US's dependance on international oil sources.

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Ok I'll bite, why are the goals of the car manufacturers not inline with reducing the US's dependence on international oil sources. Put another way, why would more fuel effecient automobiles reduce US dependence on foreign oil sources ceritas paribus (all things being equal)?

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Why should an auto company change how they produce cars to a more expensive method when it won't benefit their business?

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Nope wouldn't make sense. But if the price of a gallon of gasoline was high enough people may pay more, competition may bring down costs, etc.

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Maybe if the government subsidized the additional costs?

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Vis-a-Vis subsidizing domestic producers but not foreign? Not sure if this would violate WTO agreements or not.
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