Cheap Gas = Trucks to outsell cars again this month
It's the same old story, people say one thing, yet do another. The price of fuel has fallen to the point that it's no longer financially ruinous to fill the tank on a full-size pickup, so looks like truck sales will eclipse cars in December. Despite the public's rhetoric about smaller and more fuel efficient vehicles, the populous has seemingly gone back for another feed at the truck trough. Winter tends to remind people of the things that SUVs and trucks are good for, like plowing and effortless going in inclement conditions while also carrying a passel of rugrats and their associated detritus. Not only are truck sales expected to be up, Hybrids will be the flip side of the trend, underperforming compared to what everyone might have thought a mere four months ago. It might end well for the automakers, with higher profit trucks bouncing back, though the investment in green and hybrid technology will go wasted if the marketplace ignores it, a real danger with fuel prices easing... for the time being. Hat tip to reader "Throwback"[Source: CNN, Photo: yammeringmagpie]
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Reader Comments (Page 1 of 7)
Epyx 10:02AM (12/24/2008)
Merry Christmas Autoblog!
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notYou 11:14AM (12/24/2008)
Autoblog: Despite the public's rhetoric about smaller and more fuel efficient vehicles...
No, sorry; you are wrong. As evidenced by their purchases, the public is not and has not clamored for fuel efficient vehicles (although they arguably want more fuel efficient vehicles to make their fuel costs per month at least don't exceed their relative purchasing power).
The _environmentalists_ are clamoring for more fuel efficient vehicles (really they want less fuel consumption period), they threaten - err, convince - governments to agree, and the press echoes the sentiment like you just did as "the public's" when it isn't.
I know the enlightened wish the great unwashed masses would just get onboard and start self-flogging their fossil-fuel-consuming selves, but it's obvious to the rest of us in the real world that the fossil fuels are being constrained by politics (no drilling! no nuclear! more fees/taxes! no fast driving!) not by real world free market forces.
Call me when hybrid's break the top 10 most popular vehicles and I'll call you when we're allowed to pursue energy freely where it's most cost effective and nationally secure (domestically!).
Oh, Merry Christmas!
Beat-it-nerd 10:07AM (12/24/2008)
Which is why CAFE shouldn't determine what kind of vehicles are produced. Fuel prices are clearly the key variable and the customers steer their purchase habits based on them. The market takes care of itself. You can't blame car companies from producing trucks when they are so profitable.
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geo.stewart 10:29AM (12/24/2008)
it would still be a mistake for the automakers to disregard the hybrid technologies. Who knows where we will be in a year? But I think the US teams are doing a better job by having hybrid models of standard cars rather than squashed egg Prius and Insight. and Fusion trumps Camry by a carlength.
The Volt will be interesting, depending on the energy climate at time of release. Hopefully, GM will still release but limit quantities to meet demand.
RSR 11:19AM (12/24/2008)
I agree with your view on CAFE. If you look at Europe and Japan, it shows that high fuel price works far better than regulations. But I don't see politicians with enough guts and honesty to push for higher fuel price. They pick the easier way - for themselves - and bully OEM's. Customers aren't much better when you see what happens as soon as the fuel price drops...
Sea Urchin 12:38PM (12/24/2008)
I agree, which is why i want everyone who drives an SUV to send his/her first born to Iraq and fight for their parents freedom to drive a "tank"
seanleeforever 2:10PM (12/24/2008)
what the hell are you guys talking about?
the reason behind high fuel cost in Europe and Japan is purely due to regulation. they mandate what cars should be produced by twisting the fuel tax. it is NOT like a gallon of gas cost 1 dollar to ship to U.S. but cost 10 dollar to ship to Europe.
also, the ONLY reason diesel are popular in Europe is becuase government give you a GREAT incentive to buy diesel cars by artifically lower diesel's tax while greatly increase gas' tax, which made diesel the same price, if not cheaper, than gas.
I don't mind people bashing CAFE for trying to regular cars, but please do your homework if you think Japan and Europe are doing much better.
McLovin 3:39PM (12/26/2008)
This is stupid. Have you observed the volatility of fuel prices? Do you think Ford/GM/Toyota could have planned for $4 gas followed just four months later by $1.75 gas? The answer is no.
If nothing else, CAFE takes that volatility out of the equation. All car-makers need to meet or exceed CAFE goals regardless of fuel price. Also, if you think $1.75 gas is here to stay, then you probably also believe that the recession is here to stay as well. Most (if not all) automakers would prefer to have $3/gallon gas and a growing economy than what we have right now.
Nick 10:10AM (12/24/2008)
Americans are stupid.
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cFoo 10:29AM (12/24/2008)
This is why I'm waiting for a bailout package for American Consumers.
Noah 11:24AM (12/24/2008)
No. We are AWESOME!!! Woooo-haa!
Martin 12:28PM (12/24/2008)
Couldn't be anymore than your comment, but oh insightful one bless us with more of your clever wit. Were all dying to know what thoughtful qoute your brain might be able to muster next....
Greg 12:31PM (12/24/2008)
I sometimes think that I'm the only person in the world who can look at the bigger picture of things.
Gas prices don't rule every decision made on earth.
We're in a recession and a personal spending freeze. We're dealing with smaller numbers of sales but still talking comparative percentages like it means the same as 3 months ago.
Trucks are selling better by comparison because nobody is buying a car right now. Anybody who NEEDS a truck is in a buyer's market and it sure would be nice to be sitting in a new F-150 versus that 10 year old work-horse when you're scraping a parking lot at 3 AM. Prices are cheap, for some it is probably a tax wash, and gas could be $2,000/oz and you're still not going to haul lumber or plow a backroad in a Prius.
So are we Americans stupid? Probably, but not because of this. You're just comparing two different economic time-frames with two different pools of buyers.
Aki 1:11PM (12/24/2008)
Indeed they are. The low gas prices are NOT here to stay. The market will eventually adjust and gas prices will rise again.
The consumers' shortsightedness is what got us into this Wallstreet mess to begin with. They wouldn't see the writing on the wall, and signed off on a variable-interest mortgage they could barely afford. Now with trucks, they splurge on trucks thinking gas prices will stay low, in spite of all analysis saying they'll go back up.
skipper 7:01PM (12/24/2008)
You probably came to this country to get educated; you also probably drive a truck.
You say we're stupid and yet, you probably have a cell phone, an American invention. You're complaining on the internet...an American invention. There are countless other inventions that are American.
You talk because you're ignorant and jealous because this truly is the greatest country in the world.
Go back. We don't need you here. You contribute nothing.
Luke 1:12AM (12/29/2008)
That's like the ocean calling the raindrop wet...
Chucky M 10:11AM (12/24/2008)
Proof that American consumers really are that stupid and mentally short-sighted.
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Burger 10:35AM (12/24/2008)
Nick said, "Americans are stupid."
Nick, what a juvenile attempt to get a rise out of people.
Well done - assuming you are 11. Go have some milk and cookies.
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nardvark 11:52AM (12/24/2008)
Hey, there's nothing wrong with milk and cookies. I'm 25 and still enjoy it. Although beer and cookies is even better.
Frylock350 11:56AM (12/24/2008)
Make it beer and brats and you've got yourself the Green Bay Packers experience, which is something I love to this day.