Gas prices spike, Genergy Motors buckles!

As the market of cars sees more flex fuels, the liquidity of GM has no flexibility at all. There is a lot of bad news and some good news. This morning July 15, 2008 the giant car company announced some hard nose cuts and a faster pace of plant closes.

This move affects not only the United States but the entire world. As we have learned, car companies have a far reaching effect on the global economy. Gas prices are a major factor of the moves today made by GM. We need to reach a point of less dependence of gasoline powered cars.

The silver lining of today's news, GM will continue to push its more gas efficient small cars and continue to invest in hybrid cars. For those who have been following the electric and hydrogen car push, this could be great news because the greater the necessity the greater the innovation.

If General Motors is able to pull through somewhat even in 2009, they will be able to benefit from their production of the all electric Volt in 2010. This car and hopefully others will lead them back to the top of the car food chain.