do you think automakers get a piece of the profits oil companies make?

Question

just curious since it's been taking a LONG TIME to make cars to run on alternative fuels

Answer 1

No, not really. The main reason behind the slowness of adapting to alternative fuel vehicles has to do with infrastructure. After all, if Ford suddenly begins making cars that run on hydrogen but no one else does, they won't sell many cars. People won't buy hydrogen cars if there aren't many places to purchase fuel for it. Until some sort of major change in infrastructure is made that will make some of these other sources of fuel viable options, they won't be taken. Brazil already uses hydrogen cars, so the technology is developed. But Brazil's infrastructure is in place to make this possible, since they were behind and adopted that technology instead of gasoline. Ethanol is already in production here in the states and is being mixed with gasoline in some locales. However, it is actually more expensive to produce than gasoline, so it isn't doing much for fuel prices.

Fuel economy could be improved, but the companies are generally inefficient, such as American auto makers. Thus, they are slow to adopt the new technology. As competitors begin doing so, these other companies will be forced to adapt or die off.

Answer 2

No. There isn't much profit margin to spread around. Banks make a higher profit margin than oil companies.

If it is so easy to make a car that runs on a fuel cheaper than gasoline why don't the law makers bypass the auto manufacturers and just design and build their own alternative fuel car. The simple fact is there isn't a cheaper alternative fuel. All the alternatives are more expensive. So why would anyone build a car that uses a fuel more expensive than gasoline. Who would you sell it to, who is stupid enough to buy it.

Answer 3

Well I have to say that is an interesting question. You almost have to believe that the do recieve some kind of kick back. But if I have to say which automakers, then I would say Ford and GM. This is because if you look at most of there vechieles that are gas guzzlers. They are only recently making fuel efficent cars as of late because Toyota and Honda are kicking there *** in sales. Look at Ford, they posted a record loss of over 5.7 billion just in the fourth quarter. Tell me how are they still in business. I think the oil companies got to be helping them.

Answer 4

not directly. But they're definitely in bed together. The oil companies and the auto makers collaborate and come up with agreements about how much gas mileage cars have. If car manufacturers make cars that get better gas mileage, obviously the oil companies don't make as much when the price of gas is low, like it is right now, so they definitely give kickbacks (i.e. some of their "profits") to the manufacturers. Of course no one talks about this and both sides will deny it if asked outright, but it's pretty much common knowledge that big oil and the big 5 car manufacturers have heavy pull in each other's respective industries. It's a weird, but pretty logical (from a business perspective) symbiosis. The downside of this arrangement is that we the consumer get screwed.

Answer 5

I don't truly know, but I'd guess the answer is no for two reasons: because they are in two different and distinct businesses, and because if they were getting a piece of the profits then car makers would not have such a problem staying in business. Take a look at Ford, for instance, they are having lots of problems and won't start again to make a profit for another few years so they have to lay off people and early retire other people.

Answer 6

If you actually paid any attention to the auto industry you would know the US auto companies are very badly unprofitable, so looks like the oil industry ain't giving then too much!

Seriously though, the auto makers attempt to give people what they want (some are better than others). And what people want are cars that run on petroleum derived gasoline (and diesel), because it simply is the cheapest most productive auto fuel.

Answer 7

What alternative fuels are you talking about? Gasoline made from coal is identical to gasoline made from oil, so there is no need to modify cars. Ethanol may require some minor modifications, but Volkswagen already mass-produces cars that can run on pure ethanol (but, since the only place in the world where ethanol is price-competitive with gasoline is Brazil, they only manufacture those cars in Brazil).

Answer 8

I more think that it's a circle of back-rubbing. The car manufacturers make their cars for certain types of fuel. The oil companies provide that fuel. And the government applauds both companies for making their economy gross more profit.

Answer 9

this whole thing is a scam they the automakers just want to break the unions and pay their workers $7:00 an hour
with the technology thats available today we the consumer should be able to get 100 miles pg i will not ever purchase an american made car again....

Answer 10

Only in the sense that they may have their spare capital invested in oil stocks.

But give the fact that most US car companies are bleeding money by the billions I dought they have any to invest.