Tuesday, April 22, 2008

Omelet opportunity for the Big 3

I just read Gas guzzlers a hit in China, where car sales are booming.

Why? Two primary reasons.

1. There are more billionaires in Hong Kong than any other city in the world. They've got lots of money. But forget about the billionaires - generally speaking, there's just so much demand in that area of the planet, period.

2. Environmental policy is relatively lax compared with Europe or even North America.

I would hate to see the Big 3 act irresponsibly and make a crash-grab out of the situation by continuing to build gas-guzzlers for the Asian market. BUT...the current inventory that's no longer selling here in North America should be wrapped up with ribbons and bows and shipped over there, and the revenue be invested in the future.

Thursday, April 17, 2008

Why boycotting Gas Stations Won't Lower Prices

Believe me, I sympathize, but I've got to tell you - boycotting a gas station will not bring down the price of gas. Give me a few minutes to demonstrate why, as well as propose what we can do to lower gas prices (although it will not be a quick fix to remedy the current high price right now).

Why boycotting won't work
Picture an intersection that has two gas stations. We've all agreed to buy no gas for a set period of time (a particular day, weekend, week, month...doesn't matter). Company A owns x% market share, and it was being boycotted, people started buying their gas elsewhere, and the other companies would have to adjust their supply to meet all the new demand.