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Tuesday, June 3, 2008

Team Post: The End of the SUV?

Could it be true? Did American auto finally snap out of its long denial that bigger is not better? Sort of - and all it took was an unprecedented spike in oil prices. GM announced today that it is shutting down 4 light truck and SUV plants and will shift its focus to building more fuel-efficient vehicles. Additionally, GM announced it will possibly sell its Hummer division, which has become the international poster boy of gas guzzling SUVs. The struggling automaker has felt the hurt of enormous losses over the last several years as its investments in large SUVs have fallen short of international automakers such as Toyota and Honda’s releases of smaller, “sippier” cars such as the Prius and Accord.

As great of news as this is for greenies and green business advocates, I think GM’s shift exposes a fundamental reality of today’s green consumption and green business. It was high fuel prices, NOT environmental awareness, that motivated “a rapid and permanent change in consumer preferences” and a major shift on the part of big business. Meaning, regardless of growing environmental awareness and
ever-growing efforts of green marketers it is still the all-mighty dollar that has the final say in greener business practices and greener consumption. Although GM’s shift to greener product plans was prompted
by the money trail rather than corporate responsibility, the end result will be the same and we’ll take it as a step in the right direction.

Having GM on board will surely create more competition in the green automotive space, which will inevitably lead to accelerated innovation and efficiency.  I am excited for the innovations we will see at auto shows in the coming years.

Just imagine where GM might be if they didn’t scrap the EV1 back in 1999…

- Adriaan Zimmerman, Greenzer Team

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Daily Greenz @ 1:29 pm on Tuesday, June 3rd, 2008

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