During a recent conference held in Detroit, Michigan General Motors CEO Rick Wagoner stated that the world's largest automaker does not expect current gasoline prices to continue upward at their current rate or impact consumer spending in the long-term. Gas prices, according to Wagoner, need to be considerably higher than $3 a gallon before consumers will react.

Wagoner may have good reasons for his argument. While sales of large SUVs and light trucks have softened recently, GM's SUVs like the new Tahoe and Yukon were not as negatively affected compared to their competition.  While GM touts better fuel economy for the SUVs as one reason, Wagoner said the media with its constant "ups and downs" coverage of gasoline prices as one culprit to the public's pre-occupation with gas prices.

[Source: MarketWatch]

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