In his weekly radio address President Barack Obama said vehicle fuel economy standards set under his administration and better cars built by a resurgent U.S. auto industry will save money at the gas pump.

“Automakers are on track to build cars that average nearly 55 miles per gallon by 2025.  That means folks will be able to fill up every two weeks instead of every week, saving the typical family more than $8,000 at the pump over time.  That’s a big deal, especially as families are yet again feeling the pinch from rising gas prices.”

Really?  Tell that to GM who yesterday announced they are cutting production of the Volt and laying off 1,300 workers in the face of poor demand.

The history of the auto industry is littered with examples of cars being produced that consumers simply did not want to buy.  Whether it’s manufacturers telling the market what they should buy or in this case the government doing so via tax credits it’s a losers game.  Producers are supposed to listen to the market – to provide a product that consumers want to buy – not tell them what they should buy.  When will they ever learn?