Quote Originally Posted by Muskan View Post
Why did they kept making hummers and worthless luxurious cars with least efficiency?
Because you Americans had (and to some extent still have) incredible cheap gas. Because a gallon of gas was, and probably still is, cheaper than a gallon of water. Because you guys think cheap gas is a basic human right when in fact it's not. Oil is a market good and thus subjected to the powers of supply and demand. Supply is not growing (or not as fast as demand), whereas demand is. Theory of economy tells you pretty exactly what happens in such a situation.

Bad management? Union system? That can be said as actual REASON.
Yes, not to realize that oil prices are bound to go up was bad management. indeed. It was obvious that that would happen, with China and India consuming ever more of the stuff and few new oil fields coming on the map and existing ones being more difficult to exploit.

Why did not Toyota or Honda failed in US?
Because they probably have quite some heavy taxes on their gas (at least that's the case all over Europe, so maybe it's the same in Japan) so builing fuel efficient cars was paramount for a longer time to survive. And, to be honest, because they build better cars.

You know who much subsidies and help the trio (GM ford and chryslers) already getting from Government? You know some years ago US government gave a huge impetus to GM and chryslers to make them spend more in producing fuel efficient and even electric run cars?
Why didn't they tried that? Although even without any stimulus any subsidy any help from government, Toyota and Honda did exactly the same.
Why they didn't? Simple, because no American wanted to buy such a fuel efficient car. You guys wanted it big, bigger, biggest and that's what you got.
*shrug*
Don't blame the industry or government when you asked for the wrong thing for too long. There's a reason that America consumes a quarter of the worldwide oil production but makes up for only about 4% of the global population.
I'm predicting here and now that we all will come down hard, oil-wise, but America probably will come down hardest.