GM Capping the Price of Gas. Is this the Beginning of the End?

gmlogo.jpgAs reported widely (LA Biz Journal, Treehugger), General Motors will offer a one year gasoline credit for buyers of new SUVs and full sized cars in California and Florida. Drivers will only pay a maximum of $1.99 per gallon for one year after the purchase date. This coincides with GM’s claim to be “going green”. Amazing.
From a business perspective, I’m trying to think of how this is good for GM in the long term… Are they trying to dump their worst performing models on an unsuspecting populace? Are drivers really stupid enough to take the bait? It seems like a classic short term view, the kind of thing that will come back to burn GM hard in the long term as people finally start wising up, or more likely, are forced to change to more efficient vehicles when they realize the price of gas isn’t going anywhere.
It’s time to dump the old addage that “What’s good for GM is good for the USA”. The dead opposite is increasingly true.

Nick Aster is a new media architect and the founder of TriplePundit.com

TriplePundit.com has since grown to become one of the web's leading sources of news and ideas on how business can be used to make the world a better place.

Prior to TriplePundit Nick worked for Mother Jones magazine, successfully re-launching the magazine's online presence. He was instrumental in the creation of TreeHugger.com, managing the technical side of the publication for 3 years as well as an active consultant for individuals and companies entering the world of micro-publishing. He earned his stripes working for Gawker Media and Moreover Technologies in the early days of blogging.

Nick holds an MBA in sustainable management from the Presidio School of Management and graduated with a BA in History from Washington University in St. Louis.