GM will cap gas prices for buyers.

<div class='quotetop'>QUOTE(tripp @ May 23 2006, 09:40 PM) [snapback]260165[/snapback]</div>

Very simple: They're already bankrupt, right? Well, when they've thrown away the last of the cash reserves on the gas rebates, they'll go crying to the government for a bailout, and your tax dollars and mine will end up paying for the gas burned by all those SUV's.

And the Democrats and the Republicans will all agree that "We can't let such an important American company go under," and they'll approve the bailout 100 to zero in the Senate, and maybe with 2 or 3 votes against in the House.

Though using EPA figures to calculate the rebate, and limiting the duration, will somewhat reduce the actual amounts, and they'll be able, as an earlier poster noted, to further reduce their losses by charging more for the vehicles. In one sense, it's not a lot different than other bogus "incentives," which really just amount to obfuscating the actual price of the car. Set MSRP well above the price you really intend to charge, then "deal" for a lower price, then throw in an incentive whose actual value is hard to calculate.

The typical American is so completely innumerate (like illiterate, only with numbers) that he's at the mercy of a shrewd finance officer. It all comes down to abominable science education in our schools.

 

FWIW, a Consumer Reports issue showed up today w/reviews of SUVs ranging from the Toyota RAV4, Subaru Forrester and Suzuki Grand Vitara at the small end up to the Chevy Tahoe at the large end.

The 07 Tahoe (one of the guzzlers eligible under this program) achieved 9 mpg city, 19 highway w/an overall of 14 mpg.

For comparison, CR w/an 04 Prius back in May 04 achieved 35 city, 50 highway, overall of 44 mpg Although some here think that's a bogus figure, my lifetime calculated (not MFD) average so far is 45.8 mpg so it's not that far off in my book.