[bgbdwlf2500]

Originally Posted by bestatchess

Interesting situation. The original automaker pitch was that they needed loans so that they could retool to make alternative fuel cars. They had just closed a bunch of truck & SUV plants and oil was above $140 bbl in July.

Automakers Seek $50B In Loans From U.S., Industry Wants Help To Modernize Assembly Plants, Develop Fuel-Efficient Vehicles - CBS News


Now, oil is down around $60 and the hybrid tax credit is expiring at the end of the year.

Even at high oil prices in July, it was unclear whether purchase of a hybrid was a good deal for the consumer.

Overview - NADA Guides Company Information

So does the government need to bail out the automakers to produce hybrids that will be a bad deal for consumers if oil prices stay at $60?

Or are oil prices going way up soon?

Credit Suisse forecasts $60 through 2009 and $80 through 2010

It seems to me that not too many people will want to buy a premium priced hybrid if those projections are correct.

So will the car makers be producing (with taxpayer assistance) a bunch of expensive hybrids that nobody wants to buy?

Will the government need to force people to buy hybrids by taxing gas back up to $5?

id bet money that the people that bought hybrids have enough money to support the suvs that they have