Sales of small cars likely to go up with gasoline-price increases

Article by Christian Andrei, on January 17, 2011

Sales of new smaller cars that were recently introduced appear to be assured as U.S. gasoline prices are on the rise and on track to reach the $4-plus per gallon peak that was hit in 2008 right before the recession.

But according to analysts and executives who were interviewed at the Detroit Auto Show, they are sure that the forecasts are wrong but they can’t determine yet by how much.

Years of design and manufacturing planning can be wiped out in days by the drastic fluctuations in the price of gasoline and of the materials that make up the thousands of car components such as steel, aluminum, copper and platinum.

When gasoline prices significantly increased in the summer of 2008, the demand for small cars such as the Toyota Corolla, Honda Civic and Ford Focus was so high that they cleaned out the immediate inventory. But since gas prices were pulled back down, the number newly built small cars on dealer lots grew.

On the sidelines of the Detroit Auto Show, Ford Motor Co. Executive Chairman Bill Ford said that it predicts that gasoline prices will “march upward over time" and so it has built its entire strategy around it.

The gasoline price increases this time have been slower than in 2008 when it surged by 32% from January to $4.11 per gallon in July, then dropped to $1.65 by the end of the year.

Topics: sales, small car

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries