4/11/2005

Hydrogen-Powered Cars

General Motors is banking on the future. Right now GM is reporting that it will lose $850 million in the first quarter. Personally that is the biggest first quarter loss that I have ever heard of. The reason they are losing is because of Japanese auto-makers and their R&D. The R&D cost are so high because of the hydrogen-powered cars that GM hopes will be demanded in the near future. I would like a hydrogen-powered car becuase I am sick of paying high gas prices. The demand of these cars will go up in the future, but is GM banking on that to soon?

7 comments:

Marie said...
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Marie said...

GM can't be completely dumb to the fact that everyone wants to be able to travel and transport themselves with more fuel efficient vehicles, and that other companies are going to be competing with the same concepts. I find it interesting that Ford had a decline in profits as well. Maybe American companies shouldn't produce cars. Maybe American companies should focus on what we can produce rather than being defeated by foreign companies.

BOB said...

GM is intelligent to plan for the future. The hydrogen-powered car could revolutionize the car world and bring in a large amount of revenue. The company is smart to begin early in an effort to gain a large share of the market.

Rex said...

Maybe GM should stick to what they are profitable at. They are one of the world’s largest suppliers of pickup trucks. They seem to be falling by the way side when it comes to their passenger car market and maybe they should stop focusing on a market they can not compete in. The future in automobiles maybe hydrogen-powered, but if you are not around for the future, who will care if you were a pioneer in the technology?

heather said...

I think that's great that GM is willing to bank on something that could potentially leave everyone out there so much better off. The benefits to pulling this off is so far-reaching in so many areas. This is exciting to hear about a corporation with so much clout actually seriously attempting to develop this technology for the mainstream auto market.

Fred said...

Yeah, there is a major dip in the american car production industry, but maybe these companies have something up their sleeves. Sometimes there is a little dip in some companies profits right before something big is about to happen.

Dr. Tufte said...

-1 on Salty's post for a spelling error.

For a large company, a $50M in one quarter is not huge.

This is a very desperate gamble by GM. The only way that hydrogen is going to be economical in cars any time soon is if governments are heavily lobbied to tax gas out of the competition.

Hydrogen and hybrids are about shifting the source of pollution (at some expense) away from the end user of the transportation. There is a market for that kind of move, but it is being driven by clean air advocates in (say) Los Angeles. This is all about transferring Los Angeles' pollution to someplace where Angelenos don't live, like (say) Delta. GM is merely responding to the political winds.