Car dealers worried about car sales in $4 gas era
With American drivers nervously eying $4 gallons of gas, another group of people is getting that sinking feeling in the stomach as well: car dealers. Automotive News (subs req'd) says that Chrysler co-President Jim Press set the stage for 2008 car sales by saying, "This year is going to be a pretty severe year."
Others involved in vehicle sales don't have quite as pessimistic an outlook, but everyone agrees that fuel-sippers will get a second look from people who might otherwise be interested in thirstier vehicles. Just where the dividing line between fuel economy and (expected) performance will be for customers on the lot is unknown. Used cars, though, especially used trucks, lose a lot of their resale value when gas prices rise. Sources in the AN article add that the housing slump is hurting truck sales as well, so don't just blame gas prices if you're having a hard time selling your F-150 these days. I think the Onion handled a similar topic a while back.
[Source: Bernadine Williams and Ryan Beene / Automotive News]
Reader Comments (Page 1 of 1)
sensitive_man 10:22AM (3/03/2008)
I just got my Consumer Reports Annual Auto Issue. I was looking at MPGs and it truly boggles the mind as to how many vehicles out there get between 13-19MPG.
I just do not understand how consumers are willing to settle for this. Legislation or no, people should be telling the dealerships right now how unacceptable this is and not wait till we hit $4 a gallon.
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Matthijs 9:45AM (3/03/2008)
In this case it's all about adjusting your products into what people want and can afford. Just take a look @ Europe. People still drive hummers in my area where gas costs $8.67 now. The car industry has all the components ready to downsize engines in vehicles.
For example GM sells a Saturn Astra with a 1.8 140 hp engine as a basemodel. Where I live they sell an Opel Astra with a 1.4 ecotech engine 90 hp. The even have 3 smaller models that they can get to the US if they want. Saturn Agila, Corsa and Meriva.
It's not all that hard to adjust. But I think $4 dollars is still ridiculously cheap!
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Rich 11:31AM (3/03/2008)
13-19mpg
Just re-enforces my theory that the big auto companies are under the influence of big oil.
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MikeW 11:36AM (3/03/2008)
GM sells an Astra with: POS 4 speed automatic, or POS 5 speed manual.
Where is the 6 speed auto, double clutch, CVT, 6 speed stick?
How about some headlights?
bi-halogen with HB3 bulbs, you have to be joking GM.
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jake 1:08PM (3/03/2008)
@MikeW
Sorry, but automakers in the US have traditionally been giving us the crappiest of their small cars because the fact of the matter is most Americans aren't willing to pay a premium for better small cars. Until the $4 gas causes enough demand for small cars, we won't get any of the best small cars from europe.
In the recent years, it is changing because of the idea of the global platform; an example is the fiesta coming to the US.
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Charles S 1:37PM (3/03/2008)
Fuel-efficiency really isn't the top priority when it comes to US car buyers. $4/gal will come and people will still buy what they like; big vehicles.
A few years back, survey said that people would "give up" their SUV when gas goes beyond $3/gal. It's been $3/gal for almost two years now, and F-150 is still #1 selling vehicle in US and "light trucks" category still makes up roughly half of all vehicles sold.
As long as there isn't a fuel shortage, and the public is given time to get used to sticker shock, I think most low-mpg vehicles have nothing to worry about.
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MikeW 2:23PM (3/03/2008)
A 6th gear in the manual transmission would give it the highway gearing that is missing. [sporting gearing it should have 4,8,12,16,20,24. Taller than the 20.5mph in 5th currently]
Even a 5 speed automatic from the Saab 9-3 would improve things over the 4 speed. [top gear 25mph/1000 rpm. Taller than the 23.5mph in 4th now]
The ecotec 1.8 engine is fine, so what it is old, timing belt, no roller follower valvetrain
http://media.gm.com/us/powertrain/en/product_services/2008/HPT%20Library/Ecotec/2008_18L_2HO_Astra.pdf
http://media.gm.com/us/powertrain/en/product_services/2008/Photo%20Library/Ecotec/08_2H0.jpg
Does the cost of a timing belt change for the ecotec equal the cost of a valve clearance adjustment for the Honda R18A1?
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Michael Hippenhammer 4:59PM (3/03/2008)
I warned people 10 years ago that gas would be this high I even bought a turbo-diesel VW to prepare for this. People laughed. Look who's laughing now. I have owned my TDI for almost 4 years now and it is still worth what I paid for it. I do like they do in Europe, I pull a trailer if I need the hauling capacity of a pick-up. I average 43mpg and park my trailer. I can load almost 3/4 of a cord of wood, cruise down the highway at 70 and pass people going up hills. If you have a farm or ranch I can understand why you need a big truck, but come on lets not be stupid and also use it to get groceries!!
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James 5:43PM (3/03/2008)
I ride a Honda 750 motorcycle 11 miles to work and back. My wife drives a Honda accord. $4.00 gas and the rising price of food is realy going to hurt the working poor. This Country must come up with a new form of fuel to use in our existing vehicles till we can perfect electric cars and trucks that have the same range that our present day vehicles have with the ability to be recharged quickly.
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Mark 5:44PM (3/03/2008)
If the automakers would sell pure EV's, they wouldn't have to worry about the price of gas cutting into their sales of vehicles.
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Chris 5:52AM (3/04/2008)
I am all for automakers making whatever cars people are willing to buy. If that means gas guzzlers in the face of $4 gallon gas then so be it.
I will still buy what I want
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