- Apr 19, 2006
Gas prices a threat to GM turnaround?
To all General Motors executives and news reporters proclaiming the company's new SUVs a rousing success, hold your horses-- at least through the summer. The new GMT900 siblings may be fine vehicles, but gas prices are back up and consumers are starting to feel the pinch again. While full-size SUVs like the Chevy Tahoe and GMC Yukon (pictured) appeal to buyers who would buy an SUV regardless of the state of gas prices, vehicles such like the Chevy Trailblazer and GMC Envoy are arguably more price sensitive purchases. These buyers may in fact choose a more fuel-efficient crossover vehicle instead -- a vehicle doesn't make GM nearly as much money, not to mention the fact that the company is currently experiencing a gaping hole in the mid-size crossover segment, sending potential GM buyers elsewhere.
[Source: Reuters via Stuff.co.za]