interview > white > clip: white 4
White 4 (0:50)
Topic(s): Auto Industry / Efficiency
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problem with the auto industry for a hundred years has been that, you know, the
tyranny of the sunk cost, the tyranny of, look, this is techn- you know,
internal combustion engine technology is technology that we've bought and
paid for; we understand it, we know how to make it work, it's incredibly
efficient, essentially in terms of cost, it's been radically cleaned up
since the 1970s, it's kind of, you know, kind of remarkable what
they've been able to do. I mean, these engines are clean, they're
efficient and they're cheap. And so the new technology that would be even
cleaner, has to get over this very big wall of, of the sunk costs and of the,
the effort that's gone into making the vehicle what they are. It's
tough. It's tough. And it's hard for a company like GM, which is
struggling just to get to break even, to kind of see how that works from an
economic point of view.
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Created April 2008