Do you believe in conspiricies in business, like the auto industry?

Question

I don't think of myself as a conspiricy theorist, as a matter of fact, whether it's JFK, 9/11, or anything that would require more effort/risk than the financial payoff, I don't give it a second thought. Now, when it comes to big business, I definitely believe that there are closed door meetings between executives where they discuss the best way to keep certain great ideas for improvement from threatening the status quo. Is that a conspiricy? Technically, I'm not sure. My father's side of the family is conservative, and they all say "conspiricies" like the ones most of us suspect exist in the auto industry, are impossible in a capitalist society. If GM could have built a 200mpg car in 1980, they would've, to stomp out the competition. What are your thoughts?

Answer 1

The technology is there for improvements but I don't think they are keeping it from the public just because they can, but because of the expense of revamping factories and the added expense of the materials. Vehicles can be made that get better gas mileage but there are changes in the components and materials used to make them.

I do believe that they should focus more on alternative fuel vehicles. We know that technology is sound and they make them now. The only problem is, certain manufacturers are picky about where they sell them. For instance, the Mazda Tribute Hybrid is only available in California. It is very hard to get anywhere else in the country.

GM is coming out with the Hydro cell vehicle but they are only releasing 100 of them. This will make them extremely expensive.

They are milking the fuel economy issue, there is no doubt. Right now the 3 year cost of ownership on many of the hybrids is still higher than owning an economy car that gets more than 30 mpg.

Answer 2

I don't know about the auto industry, but "conspiracies" of this anture exist in many many industries.

The word conspiracy isn't the right word to use here: it sounds to me like you're interested in CARTELS. You can learn a little bit about them in this article I wrote about inflation, you'll find the information you're looking for in the fifth paragraph, it's the first paragraph with a link in it in the body of the text:

http://www.btgnow.net/2008/07/inflation-...

If you're interested in this sort of thing, you may wish to pursue a career in law, business or politics!

Good luck!