Lexus CT200h Forums banner

1 - 1 of 1 Posts

10 Posts
Discussion Starter #1
Rising gasoline costs are seen by some as an ill-timed threat to U.S. automakers just as the industry appears to have recovered from the recession. Shortly after United States car manufacturers reported double-digit sales gains for Feb., gas prices rose 22 percent higher than the very same time a year before. However, a more energy efficient stable of vehicles should help United States automakers ride out the storm without the severe damage that occurred during the great gas price surge of 2008. Resource for this article - U.S. automakers in a strong position to weather rising gas prices by Car Deal Expert.

Higher United States car sales then expected

There were amazing U.S. automaker sales in February. Just GM alone had a 46 percent increase last month. Analysts were simply expecting a 36 percent increase. Without wholesale buyers and fleet sales, the increase changed even more. The sales then went up 70 percent at GM. From Feb. 2010, Chrysler went up 13 percent and Ford Motors went up 14 percent. Right now, 2008 is remembered because of the very high fuel prices. United States car manufacturers collapsed because of these gasoline prices being high and customers stopping purchases of cars. This made for a recession that was fairly enormous. Since stock went public, General Motors stock went down as low as they have ever been.

Fuel efficient cars helped

In 2008, fuel got to over $4 a gallon which hurt the U.S. auto industry. Nobody wanted to purchase a large truck or SUV. They just sat in United States automaker lots unable to sell. The increasing gas costs will not be too bad though due to the preparation with fuel efficiency the U.S. auto industry has put up. Unlike three years ago, U.S. automakers have a full menu of fuel efficient vehicles. There are much smaller engines at Ford now though. Lots of energy efficient vehicles are available from the automaker. The Environmental Protection Agency rated the 2012 Ford Motors Focus with an excellent mpg rating last week. its highway rating was a 40 mpg. Four of the Ford Motors automobiles get to 40 mpg. The average total rating is at 20.5 mpg though. GM is close behind at 19.9 and Chrysler's fleet averages 18.7.

How much will high gas prices hurt?

It is possible for problems to take place for U.S. automakers nevertheless. Gasoline costs are anticipated to rise nevertheless. Toyota is nevertheless far ahead of the pack with a fleet average of 25.4 mpg. By March 8, average U.S. fuel costs got up to $3.51 a gallon. In 2010, gasoline costs averaged lower than that for the entire year. About $2.79 a gallon was paid. Smaller, more energy efficient cars are coming from Detroit. Analysts expect that the fuel costs would go as high as $4.50 a gallon before consumers give up on purchasing an automobile. The 2008 impact was much more urgent than this one may be. Before United States auto sales would change, car industry experts say that fuel prices would have to be high for over a year.


Daily Finance

MSN Money


1 - 1 of 1 Posts