Auto Industry Déjà vu
Quote:
The price of crude to U.S. refineries increased tenfold in the 1970s, from an average of $3.58 per barrel in 1972 to $35.24 in 1981.
By the late 1970s, automakers had become convinced that higher fuel prices had forever skewed the market. Here are some of their responses:
• Around 1980, GM was the only domestic automaker that had any money, and it charged into the fuel economy game like the 1st Cavalry. GM inserted an electric car into its product cycle plan to debut around 1983 and began intensive engineering. It designed a new generation of V-6 diesel engines for passenger cars and erected a new plant near Lansing to build them.
• Volkswagen's Rabbit sedan, especially the diesel version, was so popular that the company invested in a second U.S. plant to assemble them.
• Ford put out four-cylinder versions of its main family sedans and offered a diesel version of its Escort subcompact. Chrysler planned a diesel version of its Slant Six engine for cars and scheduled assembly over in Windsor.
All of this was good money poured right down the drain, as each of these projects was abandoned.
Don't think this part of history will repeat:
Quote:
But cheap oil returned, and we know the story.
Quote:
The price of crude to U.S. refineries increased tenfold in the 1970s, from an average of $3.58 per barrel in 1972 to $35.24 in 1981.
By the late 1970s, automakers had become convinced that higher fuel prices had forever skewed the market. Here are some of their responses:
• Around 1980, GM was the only domestic automaker that had any money, and it charged into the fuel economy game like the 1st Cavalry. GM inserted an electric car into its product cycle plan to debut around 1983 and began intensive engineering. It designed a new generation of V-6 diesel engines for passenger cars and erected a new plant near Lansing to build them.
• Volkswagen's Rabbit sedan, especially the diesel version, was so popular that the company invested in a second U.S. plant to assemble them.
• Ford put out four-cylinder versions of its main family sedans and offered a diesel version of its Escort subcompact. Chrysler planned a diesel version of its Slant Six engine for cars and scheduled assembly over in Windsor.
All of this was good money poured right down the drain, as each of these projects was abandoned.
Don't think this part of history will repeat:
Quote:
But cheap oil returned, and we know the story.