GM's Lutz talks about the company, 35 MPG, and recession

Interview with GM's Lutz -- A voice from the other side - MarketWatch

A choice quote below... Yay, he at least is for something that I and many others on this board are for. Fuel is still obviously too cheap for US consumers, otherwise they wouldn't still be buying monstrosity class SUVs and trucks.

'He noted that environmentalists "like Al Gore" point to the cars GM sells in Europe with higher fuel economy than in the U.S. and say, "they know how to do it."

"Well 'they know how to do it' at eight bucks a gallon where everybody buys tiny little cars with tiny, tiny diesel engines...that don't have to meet US diesel emissions regulations," he charged.

The GM executive would like to see a gradual increase in gasoline prices in this country to a level closer to what consumers pay in other parts of the globe. Such a move, he feels, would then increase customer acceptance of smaller cars here and make production economically viable for automakers.

"Because with the federal mandates at 35 miles per gallon coupled with cheap fuel, it puts us at war with our customers. At $3 a gallon (for gas) many people still want full-sized pick up trucks (and) full-sized sport utilities with V8 engines...and we're not going to be able to sell it to 'em because we if we do we won't make (the federal mandates)," Lutz told us, adding, "It's ridiculous." '