Chuck
05-01-2006, 01:30 PM
This week's Time article is very relevant. No wonder Karl Rove was demoted - he suggested to do nothing and gas prices would stabilize (lower?) this summer.
The spike in gas prices is the last thing Detroit needs now, especially General Motors, which had been banking on the launch of redesigned, full-size SUVs like the Chevy Tahoe, GMC Yukon and Cadillac Escalade to help boost sales this year. A few years ago, automakers could count on a core group of 1.5 million households to buy full-size SUVs, according to Art Spinella, president of CNW Marketing Research. Even before this year, higher gas prices had eroded that market. Only about 700,000 U.S. households are now in the market for full-size models. That's why automakers are switching to crossover vehicles like GM's Pontiac Torrent and Ford's Ecosport
Time article (http://www.time.com/time/magazine/article/0,9171,1189265-1,00.html) (subscription-free until about May 7)
The spike in gas prices is the last thing Detroit needs now, especially General Motors, which had been banking on the launch of redesigned, full-size SUVs like the Chevy Tahoe, GMC Yukon and Cadillac Escalade to help boost sales this year. A few years ago, automakers could count on a core group of 1.5 million households to buy full-size SUVs, according to Art Spinella, president of CNW Marketing Research. Even before this year, higher gas prices had eroded that market. Only about 700,000 U.S. households are now in the market for full-size models. That's why automakers are switching to crossover vehicles like GM's Pontiac Torrent and Ford's Ecosport
Time article (http://www.time.com/time/magazine/article/0,9171,1189265-1,00.html) (subscription-free until about May 7)