The Perfect Storm to Destroy the US Car Market
Ah, the poor folks at GM just can’t catch a break. It seems that ever since the gas prices have started to drop car sales have started to revert back to the usual SUV/Truck buying patterns. I am left to wonder if Americans will ever learn from their mistakes. I will explain that comment momentarily, but first I must mention that GM execs are none to please with the current turn of events. Since GM, Ford, and Chrysler have been retooling themselves to be the eco/green/fuel efficient car company that 2008 called for, what now that 2009 will have the few people who are buying…buying trucks? According to chron.com GM Vice Chair Robert Lutz is very frustrtated with the current events:
“Gasoline prices “are completely messing it up,” Lutz said today in a Bloomberg interview, referring to demand for small vehicles. “Nobody wants them.”
His comments reflect the swing back to pickups, sport- utility vehicles and vans at the end of 2008. The light trucks accounted for about 52 percent of vehicles sold in the U.S. in each of last year’s final two months, as gasoline tumbled to $1.62 a gallon from its $4.11 peak on July 15. For the year, cars outsold light trucks for the first time since 2000.”
It is amazing how everything is a worst case scenerio lately. Let me explain what is going to happen.
1) People are going to buy more trucks and SUVs thinking the gas price change is going to be long term.
2) The “big three” are going to starve to death after having retooled away from these big vehicles, taking the American tax payer with them
3)Consumption will rise for gas, gas prices will go up, and we will be left with a bunch of people with worthless big vehicles that no one wants, high gas prices, three destroyed car companies, and a bunch of tax payers footing the bill for the whole thing. Excuse the phrase but: Save us from ourselves!
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