When gasoline went to $3.50 a gallon we saw a sea change in customer behavior. Now people are turning away from more fuel-efficient vehicles and taking the bigger vehicles. I've been talking for five years now about the need for a gas tax. We have to have some predictability on fuel pricing and that price signal has to be strong enough so customers will continue buying smaller, fuel-efficient cars.It's certainly not a popular view among many, but Ford's assertion that an artificial increase in the cost of fuel would force consumers into choosing more efficient automobiles is likely accurate. It would also make it much easier for automakers to plan future model launches, knowing that new car buyers would want to purchase a vehicle in two years that will save on their monthly fuel bills.
[Source: Green Wombat]