What does GM have to say? - Page 6 - GreenHybrid

Mr. Kite · #51 (**permalink**) 07-19-2006, 07:41 AM

Quote:

Originally Posted by bwilson4web

Ok, let's assume Toyota's R&D means a loss. That bill was paid from 1994-1997 when they finished their development. No doubt we can find the annual Toyota financial statements showing Toyota is going out of business with these massive losses in the 1990s right? How about any Toyota losses?

Why would they go out of business? It was pointed out that their deep pockets afford them more R&D. Also, would it be possible for a company to have a loss on a product line but for the company to have a gain? Keep in mind, this assumed that the R&D costs were rolled into the cost of the targeted vehicles for accounting purposes. Whether or not this is a fair assumption is beside the point.

Quote:

Originally Posted by bwilson4web

R&D is an investment for current and future profits. Invested wisely, it yields the products that keep a company in business. Spent foolishly, it leads to plant closings, laid-off workers and eventually, usually too late, management changes.

I agree. If Toyota also has this view, they could say that they are already turning a profit on their hybrids.

Fair enough?

bwilson4web · #52 (**permalink**) 07-19-2006, 08:47 AM

Quote:

Originally Posted by martinlockest

sorry - been lurking for a bit and cannot resist pointing out some rather good comments from Bob Lutz at the London Motor Show yesterday.

http://www.just-auto.com/article.aspx?id=88417

To quote "with all those beliefs out there, you have to do a hybrid for public policy reasons."

hehe .. bless. honesty at last..

"Honesty" when he makes this claim?

"Toyota has said, economically, hybrids make no sense. The reduction in fuel [consumption] does not pay for the technological content and cost of the vehicle so therefore economically it remains fairly nonsensical, so that’s the left-brain analytical argument." - Lutz

So where is this Toyota claim that Lutz asserts?

Actually, it doesn't matter. If Lutz is right, Toyota will cease to make hybrid electrics or go out of buisness. Like answering the global warming skeptics, I prefer to let the sea level do my talking.

Bob Wilson