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  • General Motors CEO Wants Higher Gas Prices

    If General Motors CEO Dan Akerson had anything to say about it, you would be paying a dollar more a gallon for gas. Yes, with $4/gallon prices hitting consumers in a tough economy, Akerson told the Detroit News: “You know what I’d rather have them do — this will make my Republican friends puke — as gas is going to go down here now, we ought to just slap a 50-cent or a dollar tax on a gallon of gas.”

    Akerson, 61, was appointed CEO of GM last fall, having previously served as an Obama-appointed member of the board. He has been critical of the Obama Administration on several issues, including fuel economy standards, but now has discovered something in common: a love of high gas prices. He, like President Obama and Energy Secretary Steven Chu, believes that higher gas prices will force taxpayers to buy more fuel-efficient (and usually more expensive) vehicles.

    In 2008, Secretary Chu said: “Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” And it was President Obama who told CNBC in 2008 that he preferred a “gradual” increase in gas prices. Obama and Chu know that only when matched dollar-for-dollar will Americans choose alternative energy sources that are much more expensive today. Since the already heavily-subsidized alternative energy sources are not getting cheaper, the only solution is to make cheap energy more expensive.

    Akerson, Chu and Obama are wrong to embrace high gas prices. Hitting lower-income Americans with a punitive gas tax while unemployment remains near ten percent is a bad idea, regardless of what behavior you are hoping to mandate.

    Akerson’s comments came in the context of a larger conversation on energy policy. Akerson correctly stated that the government’s imposed fuel standards are taxing production, which will cost jobs and raise the purchase price of cars. But passing that burden directly to consumers at the gas pump isn’t the solution. The idea that the government must either increase taxes on businesses or struggling taxpayers is a false choice.

    High gas prices alone won’t encourage consumers to buy the hugely unpopular Chevy Volt. The Volt isn’t selling because even after substantial tax credits that the government cannot afford, the additional cost in buying a not-ready-for-market Volt, plus the cost of electricity (which isn’t free) is far greater than any potential gas savings.

    In fact, Chevy, along with Ford and Hyundai, are selling more small cars with the less government aid. According to the Washington Post, it is non-hybrid, but super-fuel efficient, small cars that customers are currently snatching up at a much lower cost.

    General Motors and Chrysler have been bailed out enough. They do not need the government to continue manipulating taxpayers into paying more to drive to their next job interview. And they don’t need government imposed auto mandates or more failed ‘Cash for Clunkers’ programs. If GM builds a fuel-efficient vehicle that is affordable and appealing, they won’t need Washington to trick consumers into buying one, or to help pick up the check.

    Akerson was correct to hope that GM can disconnect itself from the taxpayers’ teat in the next year. He described it as: “It’s kind of like your in-laws: It was a nice long weekend. We didn’t say a week.” We couldn’t have said it better ourselves.

    Posted in Economics [slideshow_deploy]

    36 Responses to General Motors CEO Wants Higher Gas Prices

    1. Steve, MN says:

      When will people realize that social engineering does not work. Every time some foolish attempt to reduce our dependence on energy occurs the law of unintended consequences takes kicks in and the American People end up footing the bill. The way to get of of Oil is for someone to come up with a alternate that people can afford to buy and doesn't require adding thousands of dollars of cost to a vehicle.

    2. Jim, Chicago says:

      I think it is time for Akerson to step down. He is now just a mouthpiece for the current Administration's policy of high energy prices to break the standard of living and productivity this country has historically enjoyed.

      I swear the attacks on the American way of life are now flying in from all directions. This has to come to and end before we see total destruction. I am so ready to run for president and clean up this mess.

    3. George Colgrove, VA says:

      What do you expect from a government agency? They will only do what they are told by the party in charge.

    4. Sidney A Bordelon, M says:

      OK, up the tax $1 a gallon, but make GM, not the consumer, pay the tax they think will make GM a better company.

    5. colin stevenson says:

      akerson………….what an jackass!! what i love is these hippies think the answer is plugging cars into the electrical grid is helping the environment. pains me to say it as ive owned gms my whole life, but i hope they fail

    6. craig steed says:

      if there are not enough jobs and people are not making good money(except oil companys and lobbist) how can anyone afford them

    7. David Kalman says:

      Mr. Akerson,

      You make me puke. You are one large A..Hole. Only Obama could have made you a CEO.

      Best regards,

      David Kalman

    8. Connie I., Indiana says:

      Maybe Mr. CEO of General Motors would like to buy me a more fuel efficient car? I've been unemployed for over two years and actively seeking employment, but nobody wants to hire someone over 50, no matter how good they are. If I could afford a more fuel efficient car, I'd have one. Right now to pay everything, do I not eat so I can get my medications, or just let my health go altogether? If I had his money, I'd be driving something that didn't break me up every week. As it is, I have to keep my 2000 gas guzzler because it is paid for, and I'm thankful for that.

    9. Richard Rash Missour says:

      While this man is correct in that Higher fuel might cause people to look toward buying the GM stuff to keep them from going broke again this GREEN movement is contrived and is not in the best interest of America. We have oil and gas quantities sufficient to keep America

      with good economical cost for fuel for many many years future. High cost energy does not just effect travel it slows manufacturing willingness in America to which if someone doesn't address soon America will be so dependent on other countries we can no longer protect ourselves. And we need the skill level in America's workers brought back up a great deal if we are to have the inovativeness of our forefathers who made this country great. What if we have another WWll and we could easily due to fear of using Atomic Weapons we would likely lose an all out war with Iran and radical Islam.

    10. Mark Mills says:

      This really gets me. Kicking the head of those who bailed out that failing enterprise. Of course, the dirty little secret is no secret at all. It's the only way they will get rid of those VOLTs. No thanks. Instead, let's get a new leader who makes cars people want and a President in the US that doesn't try to manipulate markets for ideological non-sense.

    11. Pingback: General Motors CEO wants higher gas prices « OBX Tea Party News

    12. Rocko, SM says:

      What is wrong with the media, I have sent info on Fisker and Quantum.

      What you see below is what I sent to the media many times and nothing.

      ———————————————————————————————————–

      Ck out this website below and see for yourself just how corrupt this Obama really is.

      He gave million of your dollars to this Auto Maker called "Fisker"………They only got the money if they employed all union employees ~ If that's not bad enough, he also told them no money unless you buy the old piece of garbage "GM Plant in Bidens home state"………..Not enough, he also made another crooked deal with "Quantum Technologies" ~ Gave them 800 million of your dollars….Plus more money later….Ck out how their stock performed after they got the money…Their on the NASDAQ exchange.

      Believe me the reason many of these politicians don't want "Sarah Palin" in the game is because ~ "no way she would put up with the crooks"…..Don't understand you People, you don't know a good thing when you see it……Palin/2012….

      Ck out judicialwatch.org below and on their website in search, type in Fisker ~ see Gore is also involved in this scam………

      ——————————————————-

      Fisker-GM plant deal under scrutiny from conservative Judicial Watch

      1 post – Last post: Jan 27, 2010

      Fisker-GM plant deal under scrutiny from conservative Judicial Watch. http:// green.autoblog.com/2010/01/25/fis…ive-group/ …

      fiskerbuzz.com/…/Thread-Fisker-GM-plant-deal-under-scrutiny-from- conservative-Judicial-Watch – Cached

      Get more discussion results

      ?

      Fisker-GM plant deal under scrutiny from conservative Judicial …

      Fisker-GM plant deal under scrutiny from conservative Judicial Watch. by Sebastian Blanco (RSS feed) on Jan 25th 2010 at 11:38AM. Fisker Karma – Click above …

      green.autoblog.com/…/fisker-gm-plant-deal-under-scrutiny-from- conservative-group/ – Cached

      Department of Treasury Fisker-GM Plant Deal Documents | Judicial Watch

      Department of Treasury Fisker-GM Plant Deal Documents. View · Discussion. Documents produced by the Department of the Treasury in response to a Judicial …
      http://www.judicialwatch.org/…/department-treasury-fis... documents –

      .Cached

      —————————————————————————————————

    13. P Bennett, AZ says:

      SURE ! GM may be able to sell a few VOLTS if the price of Gas gets high enough.?

    14. Waggly Toast, Alabam says:

      That's absurd. Using the same reasoning, Michelle Obama could jack up the price of cable and internet in hopes that such high costs will ensure that people forego those luxuries and get off their butts and do physical exercise, thus decreasing obesity. That line of reasoning is dangerous.

    15. Chuck says:

      I doubt that this dope has Republican friends.

    16. Cobb in Texas says:

      I will NEVER buy a GM vehicle again. Government Motors. Dumped my Chevy in the harbor. Ford did not take any Government cheese.

    17. Jeffery Saddlemire says:

      Dan Akerson and GM because of your idea to force more pane on the American middle and poor class people I will NEVER buy a GM car as long as I live. May you go to hell where you belong.

    18. Phillip Davis says:

      The "Heartbeat of America" is now the "Deadbeat of America!" This company may well die off due to what it has done to the shareholder and the taxpayer! This company should have gone into bankruptcy along with Chrysler and emerged with its integrity intact along with becoming leaner and meaner. Instead, it sold out America by taking a handout from the taxpayer (us). We will not soon forget!

    19. Barbara says:

      GM has become a ward of the STATE. Another reason why GM should have gone through the regular bankruptcy courts instead of bailout from Obama, chief officer to the unions.

      Higher gas prices will hurt the middle-class, doesn't Obama proposed to have concern for their economic welfare.

    20. Tim Az says:

      I will never buy a GM product newer than a 1984 until GM removes itself from the big Govt. teat.

    21. Lloyd Scallan (New O says:

      Who controls Governmenmt Motors (GM)? Obama! Any questions?

    22. Stirling, Pennsylvan says:

      GM your a JOKE !!! You are nothing more then a government shill, and have lost all credibility with the american people. I would rather buy Ford or any foreign car that has no "agenda."

    23. Ralph Montigny (Augu says:

      Go to your local Chevy or GMC dealer and just look on the sticker,if you can get pass the price, 40K to 60K for a plastic truck made,wait for it, here it comes, that's right built in mexico,obummer bails out GM with billions of our hard earn money and they turn around and have them built in,i can't even say the countries name anymore,well you know they only pay these people there a few dollars a day to build these toy trucks and have the arrogance to charge these prices,well i for one will never buy another GM product ever, FORD here i come or Toyota either one doesn't matter as long as it's not obummer motors (GOD help us)

    24. Steve S. California says:

      Just another shining example of eating the puppy from the wrong end. Raise gas prices to force consumers to buy what doesn't exist, and depend on a support system that doesn't exist? What a marvelous idea! Moving the pollution to the generating plants (which can't keep up with demand now, due to corporate shortsightedness and greed) is nothing but a political shell game. How about we mandate an increase in the intelligence levels of those who enter government AND corporate leadership instead of hurting those who have been hurt enough already? Years ago, I drove an EV-1. LOVED it. Wanted one so bad I couldn’t stand it. OOps! Not on Master Sergeant's pay. (Could have leased a top of the line Jag or Benz for that money). And then they scrapped them. I had the distinct feeling that they really weren't serious about electric cars from the social sense, just the technical, like now. Listen up Detroit. Build something that makes sense and they will come. If you have to subsidize it, why do it? If we're penalized, we won't. If the support system doesn't exist, you are wasting our time. We get tired of the old show us the carrot beat us with the stick routine. As for the CEO’s, in all deference to your positions in life, you have proven beyond any shadow of a doubt that your expertise does not cross over into policy decision making. Given the current state of affairs in Motor city, with the shining exception of Ford, you are not doing so well there either. I believe it was Einstein who said in effect that using the same kind of thinking that created the problem will not solve the problem. Duh!

    25. Pingback: El gerente de General Motors quiere una gasolina más cara | Heritage Libertad

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    27. Ron, ND says:

      I was already done with GM because I refuse to willingly support a fascist government.

    28. Joe W. Spokane, Wa. says:

      Does he need more money for the junk he builds?

    29. Pingback: Liberty's Blog

    30. Marc, Colorado says:

      Do some research and you'll find that Ford was just bailed out a few years back at an even higher cost then GM.

      This report failed to mention that Akerson was responding to President Obama's comments about placing a larger tax on the purchase of vehicles.

      Nice job of starting your story from the middle Rory!

      What's your agenda? Another Obama loving spin doctor!

    31. Bobbie says:

      General Motors CEO Wants Higher Gas Prices? We want GM to be held accountable to their business outcomes, keep their business matters their responsibilities and deal with their own consequences and if they want sincere customers, GM's loyalty belongs to customers, not government.

      Customers and those interested would've saved GM if it was meant to be, but GM chose weakness and gave into government who stoled from us. Sadly, the ceo of General Motors, shows to be a puppet of government favorites….

      bummer.

    32. Jason Murrill says:

      What would you expect from Government motors? That moniker really is not a joke, this guy was appointed by Obama to be CEO, so he couldn't be any more politically motivated. I hope people that want to buy chevys rethink their purchase, because in essence they are supporting Obama's liberal agenda, and kooks like this who want to tax American's to death. I'll purchase my car from someone that wants to make a profit and can excel by providing a car and service that people want, not a company who cannot excel by providing a superior product or service, and who wants the government to control my habits by fiscally penalizing me if I do not bend to the will of the,"Ruling class." At least domestically, Ford can still do business legitimately, without becoming a front organization for the Progressive party.

    33. Paul Minnesota says:

      Speaking strictly for my self I think anyone who subscribes to this kind of mentality should voluntarily contribute to this concept. And those of us who work hard to make ends meet should be given a tax break for our efforts at the pump. Consider giving the 9 to 5 75k and below employee. The back bone of the American Society and the Largest contributer to the national tax base should pay 1/2 of the current fuel tax. My thinking is that we as the working functioning engines of societal commerce do more than most others to drive this national economy. Roughly 80% of the Amercan public fall into this catagory and would have more cash to survive this dismal economy and possibly Just Possibly help drive it back into prosperity again.

    34. Disgusted, American says:

      Does anyone on this site bother with facts? I couldn't believe how bias the writer's version of the facts was, and expected to see comments correcting him. Instead, I read dozens of comments joining in with the writer that have nothing to do with fact.

      Here are some actual facts: Oil companies receive for more government subsidies than any alternative energy. The Republicans are fighting for billions in oil subsidies right now, calling it a "job killing tax increase" to end the subsidies.

      Alternative fuels are competitive right now, but vehicles that use them aren't being built because there's no infrastructure to refuel them. Flexfuel vehicles cost no more to build than a regular gas vehicle. A regular gas engine can run on natural gas. I know someone who added the fuel system to his truck and burns CNG in it most of the time. It could just as easily burn propane. Coal liquifaction is profitable at about $40-$50/ barrel. And a diesel engine can burn bio-diesel too. The issue is a refueling infrastucture, fuel not cost.

      As far as saving U.S. auto companies, why is anyone against it? It's not the first time its happened. And the alternative would be to allow 2 major U.S. car companies and all their suppliers to go under. That would be great for China and India, but terrible for the U.S. And the money was a loan, not a handout like what Bush gave the Banks. So U.S. taxpayers earned interest on the money that saved the car companies. It was win-win for taxpayers and U.S. manufacturing.

      And the Volt production hasn't been able to meet demand. Even if you don't want one, other people obviously do. That is why other car companies are jumping onboard to produce their own versions. There have been cars selling for a lot more than $40,000 for as long as I can remember, so why would that price be an issue? Hummers sure weren't saving anyone anything in gas, but they still sold. If you'd rather cling to oil, that's your choice. But we all shouldn't be forced to burn gas. Until that changes, gas will remain a monopoly and prices will never be kept in check by competition.

      For those who think "drill, baby, drill" is an answer, you're just plain wrong. Not only do we not have the oil reserves to meet our usage, but that oil is owned by companies that sell to the highest bidder. So even if the U.S. had the oil reserves to meet our usage and it didn't take about 10 years to go from new well to gas in the tank, OPEC would just reduce production to keep prices up. About 90% of the leases oil companies have now aren't being drilled. They have no interest in increasing production and driving down gas prices. They are companies who are interested in making as much money as they can. Bringing down the value of their product is exactly what they don't want to do.

    35. Thomas Climer says:

      How else can GM keep on paying their janitors $90k+ a year. Thats right. That is what most janitors make at GM. I used to work there, so I know from experience. Most over payed workers I ever met.. As for the union jobs…Anyone ever tried to get into the UAW if you don't know someone you will never get in, by the way I was only a security guard there.

    36. Gary Middleton says:

      wrong ralphie.. GM left lansing in 02 they took parts to mexico truck after truck

      bush bailoed out the banks or did ytou forget that one

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