From the registration-encumbered Chicago Tribune (bugmenot is your friend):

"GM on Tuesday announced a promotion that caps gas at $1.99 a gallon for one year for buyers of certain full-size sport-utility vehicles and midsize cars in California and Florida.

Consumers will receive a monthly credit to a pre-paid fuel card for the difference between $1.99 and the average price of premium gas in their state."

Over 10,000 miles in a year for a 16 mpg SUV with an average $1/gallon subsidy, that works out to be $625 paid out by GM, which doesn't have the money, the buyer would have to fork over $1250 for the rest, which is more than they'd pay without a subsidy in a sensible car. That's without counting the premium just for buying a full-sized SUV in the first place, as well as the remaining life of the vehicle after the first year. GM is stupid to do this, and anyone swayed by this is even more so.

The perfect quote was provided by a Sierra Club director: "I have never heard of an addict getting off their addiction by having someone subsidize their fix."

¶ 1286 Posted at 02.33 PM ⇒ No Comments ( oil | stupid people )