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Re: Manufacturer's Profits at Buyer's Expense

To: Max Heim <>
Subject: Re: Manufacturer's Profits at Buyer's Expense
From: "Paul T. Root" <>
Date: Fri, 6 Dec 2002 13:38:57 -0600
On Fri, Dec 06, 2002 at 11:19:15AM -0800, Max Heim wrote:
> The point is that it ISN'T free enterprise -- it's a result of a distorted
> regulatory environment creating an uneven playing field.
> SUVs by passing as "light trucks" are exploiting a regulatory loophole -- by
> being exempt from the safety and fuel mileage requirements of passenger
> cars, they are cheaper to manufacture. This encouraged the manufacturers to
> promote them heavily, creating demand, and enabling them to sell them for a
> higher profit margin. Also, as high "content" vehicles that do not affect
> their total corporate fuel economy average, there is even more of an
> incentive for manufacturers to promote them. Once the SUV became established
> as a "trend", then the momentum became self-sustaining.
> Essentially, the whole SUV phenomenon is an aberration, created not by
> customer choice but by the inevitable workings of an ill-conceived, lopsided
> regulatory structure. The failure of the government to correct this obvious
> loophole, which defies both reason and the public interest, in the face of
> (understandable, if self-interested) industry resistance is a sad commentary
> on the current state of our political system.
> <end of rant>

Exactly, I'm trying hard not to buy an SUV because it sends the wrong message.
My wife won't do the minivan thing (neither would I) but we need more space.
We need a Station wagon. Up until recently, they have not been available in 
a price agreeable, ascetically agreeable form (the Saab is too much money,
the VW is ugly and too much money, etc.). If the price was right, the ZT-T
would be perfect. As it is, the Mazda 6 next year will be perfect. 

I get what I need, and I don't send the message that 'SUV is good' to Detroit. 

Paul T. Root            - CCSA, CCSE, CCNA
600 Stinson Blvd, Fl 1S         PAG: +1 (877) 693-7155
Minneapolis, MN  55413          WRK: +1 (612) 664-3385
NIC:    PTR                     FAX: +1 (612) 664-4779

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