GM CEO Wagoner slams biofuel critics in Beijing
Filed under: Biodiesel, Ethanol, GM
Recent comments by John Powell, the deputy director of the UN World Food Program, have drawn return fire from GM CEO Rick Wagoner at the Beijing Motor Show. Powell blamed biofuels in part for the recent run up in food prices around the world that has resulted in more poor people not being able to afford food. Speaking at the Beijing Motor Show Wagoner called critics "shockingly misinformed" saying that high fuel prices are a much bigger factor in food costs than the diversion of food stocks to fuel production. Wagoner acknowledged that a dramatic increase in corn ethanol production and use could ultimately increase food prices further. Currently ethanol availability in the US is limited anyway with only about 1,200-1,300 E85 stations nationwide. GM's focus is on helping to develop cellulosic E85 production through investments such as their stake in Coskata. To some extent, Wagoner is probably correct in blaming increasing fuel prices. However, part of the reason oil has gotten so expensive is huge increases in demand from China and sustained high demand from the U.S. Shifting energy consumption from petroleum to biofuels will not do anything to address this fundamental problem. Until we dramatically cut back our energy consumption prices will likely stay high for both food and fuel. One upside is that this might help address the over consumption of food in the U.S.[Source: Green Fuels Forecast]











Reader Comments (Page 1 of 1)
4-23-2008 @ 1:51PM
armmat said...
Of course he would...GM has nothing left. Every single approach they are taking is still relying on some sort of disastrous fuel approach.
With companies like GM having huge influence I'm sure on future fuel alternatives, we are seriously screwed.
As an example...AFTER ALL that is said and shown regarding the environmental issues, AFTER ALL that is predicted with China's rising usage of fuel, GM decides to push cars like the Escalade to the Chinese...claiming that's what they want and they are simply serving the customer.
How much more irresponsible can a company be? How much more clearly can a company say FUCK YOU to people who care about their future than this?
If your name is Rush Limbaugh, then I can understand if you don't get it, otherwise any life form worthy of being called a life form will have an inkling of what is going on.
I wish GM would just disappear and do us all a favor.
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4-23-2008 @ 3:02PM
i am sure said...
There is truth to the gas food price correlation, think about it, sure the price of corn and other biofuels related crops. But the cost of gas affects the whole supply chain for everything. So "Every single approach they are taking is still relying on some sort of disastrous fuel approach." please list so I can rebut later, because I have not seen an alternative that Gm is not testing. You act like no other company makes trucks, "How much more irresponsible can a company be? How much more clearly can a company say FUCK YOU to people who care about their future than this?" so selling trucks is fuck you to people, so all car companies are saying the same thing, cause most car companies make trucks. Could you post something worth reading next time? Ok thanks you have a good one friend.
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4-23-2008 @ 4:15PM
Tim said...
Comrade armmat (#1) So you have a problem with the free market supplying demand? You must have been VERY disappointed with China’s central gov’t allowing their NEW middle class of citizens make choices with their newfound wealth which is only due to Chinese capitalism.
It’s getting tougher for GM to sell cars in the US because our economy is collapsing. This is due to Congresses uncontrolled military and entitlement spending which has caused them to borrow $Trillions from the Federal Reserve bankers which debases our currency causing hyperinflation. The debt service alone consumes over 100% of all personal federal income tax each year.
The Chinese are killing us the exact same way we killed the Soviet Union… economically. If you support the Democratic-Socialists or NeoCons, it’s YOUR fault!
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4-23-2008 @ 4:50PM
armmat said...
TIM:
You're dreaming if you think you're living in a free market. They build what they want and you buy it. Tell me, do you think consumers NEED or WANT 7, 8, 9 passenger cars so they can sit in traffic for 3 hours a day all by themselves? Oh yea...people were demanding 500 HP in an M5 sedan that gets 11MPG...yeah...we all need that.
What choices do China's middle class have when GM's ambassador to China is a Cadillac Escalade? Do you think if GM brought over a smaller car people would be saying oh no...we don't want that?
Tell me...what's the average amount of influence a consumer has on a product during design and development? Don't know? I'll tell you...NONE. Guess how much influence a consumer has on future products and what sort of products they will be and how they will perform? Don't know? I'll tell you again....NONE.
Socialist systems work...just not in greedy, money hungry, self-centered societies like the United States. You think capitalism works? Great..go and ask that poor 12 year old kid who's sowing your clothes you buy at Walmart half way around the world in poverty, so you can enjoy your freedom and capitalism.
Yeah..it works for you..just not for the other 4 billion people on this planet...which I'm sure as an American YOU have no clue about.
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4-23-2008 @ 4:56PM
armmat said...
I AM SURE:
Why don't you compare Honda's cars and trucks to GM's and then get back to us? Or Renaults? Or Peugeots? Oh that's right...that's not worthy for you.
I've never come across a more pathetic bunch apologists for GM in my life.
I really don't know what it will take for people like yourself to change your thinking process. You probably never will...that's why we're so fucked.
Oh by the way...let us know how the vaporware products GM is testing work out...while they push E85 and other crap that doesn't help us one bit.
Nice try thought...you've almost got GM's diversionary tactics learned yourself.
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4-23-2008 @ 5:28PM
Stéphane Dumas said...
it's only one part of the truth. There also other factors who come to play according to this French article at http://www.leblogueduql.org/2008/04/la-crise-alimen.html
and on a off-topic note, here a interesting article about green fuels from Popular Mechanics http://www.popularmechanics.com/science/research/4260296.html?series=19
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4-23-2008 @ 7:17PM
i am sure said...
"Why don't you compare Honda's cars and trucks to GM's and then get back to us? Or Renaults? Or Peugeots? Oh that's right...that's not worthy for you." please Honda doesnt make anything car based trucks, i dont even drive a truck but i find people who blindly blame gm for the buy habits of people a bit stupid.
"Tell me...what's the average amount of influence a consumer has on a product during design and development? Don't know? I'll tell you...NONE. Guess how much influence a consumer has on future products and what sort of products they will be and how they will perform? Don't know? I'll tell you again....NONE." it called a free market economy, if people didn't want trucks No major automotive company would make them, tell why every Japanese company makes truck(from light to heavy duty). Car companies make cars 5years behind demand, so now that the demand is there you can expect them to make more small cars in five(or less) years(dev,test,tool,prod,market),
"I've never come across a more pathetic bunch apologists for GM in my life."
Well i dont think of myself as apologists for GM look i dont even drive a gm(audi TT), i am just sayin Gm is not the problem, the problem was gas that was too cheap, a economy that needs fuel to get goods to market, cost to retooling a factory and paying workers not to work, artificially low yen, American buying habits "bigger is better"
these are thing that while GM didnt help is not GMs fault, the problem is in the mirror every moringing
thank you, you have a good one buddy
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4-23-2008 @ 7:41PM
armmat said...
Well i dont think of myself as apologists for GM look i dont even drive a gm(audi TT), i am just sayin Gm is not the problem, the problem was gas that was too cheap, a economy that needs fuel to get goods to market, cost to retooling a factory and paying workers not to work, artificially low yen, American buying habits "bigger is better"
these are thing that while GM didnt help is not GMs fault, the problem is in the mirror every moringing
thank you, you have a good one buddy
Hmmm...so you're saying the average joe who doesn't know shit from shizola demands that we bring fruits, food, goods, and so on using fossil fuels and not alternative energies? Yes...we all enjoy living in smog filled, polluted, crap cities while sitting in traffic for 2 hours a day while going and coming to work...that's what I voted for, for sure!!!!
Your excuse that our buying habits are the problem is a piss poor excuse. We'll buy whatever they can market properly. It's no coincidence that SUV's are the most profitable set of vehicles GM, Ford, etc make. Low tech crap sold to people at high prices...yes indeed...that's what we want!!!!
If GM hadn't made SUV's and had made fuel efficient cars, you don't think consumers would have bought them? Like they would have had a choice??? Absolute rubbish argument you have.
It's the irresponsibility of large corporations that has created the problem. And consumers are too stupid to realize that they don't have much of a choice in the matter given the current mentality they have. Americans will eat shit if it's packaged and advertised properly. I'm sure you think that's free market stuff.
I don't think even if you looked in the mirror you'd realize what you're really looking at.
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4-23-2008 @ 7:48PM
1985 Gripen said...
The free market system will limit for fuel prices. I've read economists' estimates that $4.00/gallon for gasoline in the U.S. is the tipping point. When gasoline prices get to $4 a gallon people start conserving, using alternate forms of transport (including public transport), and better planning trips with the car, not to mention reducing vehicle size when they buy/lease a new car. This conservation then reduces the demand, which reduces the price of gasoline.
The national average price of a gallon of regular unleaded in the U.S. is still only around $3.51, but in the San Francisco Bay area the average is $4 a gallon and already signs of cutting-back are being noted. BART (Bay Area Rapid Transit - their public transportation system) has seen ridership increase by 7% over last year already and there's been noticeably reduced traffic on the bay bridges. People are driving their SUVs less and hybrid vehicle sales are up something like 40%.
Oil companies have their own economists to tell them that ideally for their maximization of profits they need to keep the average price of unleaded gasoline around $3.99 a gallon.
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4-24-2008 @ 12:06PM
AltairDusk said...
"Hmmm...so you're saying the average joe who doesn't know shit from shizola demands that we bring fruits, food, goods, and so on using fossil fuels and not alternative energies? Yes...we all enjoy living in smog filled, polluted, crap cities while sitting in traffic for 2 hours a day while going and coming to work...that's what I voted for, for sure!!!!
Your excuse that our buying habits are the problem is a piss poor excuse. We'll buy whatever they can market properly. It's no coincidence that SUV's are the most profitable set of vehicles GM, Ford, etc make. Low tech crap sold to people at high prices...yes indeed...that's what we want!!!!
If GM hadn't made SUV's and had made fuel efficient cars, you don't think consumers would have bought them? Like they would have had a choice??? Absolute rubbish argument you have."
First off if you hate living in your city so much then MOVE. There are many many places in this country that are not like that. Second of all, consumers have no choice? Are you retarded? How many automakers sell vehicles here? How many vehicles are available for someone to choose from when buying a new car? There are plenty of choices, from huge trucks to small economy cars. Those who buy trucks and SUV's do so because they choose to. If you really want a system where everyone does what you think they should and buys the cars you think they should then get the hell out of the country and go start a dictatorship somewhere.
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4-24-2008 @ 2:51PM
Whopper said...
armmat, based upon your babbling I can only conclude you are a troll or an idiot. Your logic(???) is so far off base I wonder if you're not cutting classes at the Simpleton School for The Insane in order to comment. I read your stuff and think "please tell me this moron isn't old enough to vote".
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4-24-2008 @ 3:45PM
Dad said...
" Until we dramatically cut back our energy consumption prices will likely stay high for both food and fuel"
You have to look at 8 years of Clinton and the Dems doing nothing. They never raised CAFE, they never increased the cost of gas, they never discouraged SUVs, they did nothing for renewables and they never raised the alarm about global warming. So, 8 years wasted by the Dems and look at the mess we are in right now. Just add 8 years to the time it will take to solve all these problems. Once again, enjoy high prices by the same Dems that brought us the dot.com bubble!
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4-24-2008 @ 4:35PM
fantasyfreddy said...
You can have your cake and eat it too: legalize hemp!
USA's obsession with "drugs" is starving the world.
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