Tag: Gas Prices

By on June 28, 2010

Pity the automotive industry. With a minimum three-year lead time for new product development, timing vehicle launches to coincide with appropriate fuel price levels is never easy. Chevy’s Volt, for example, was developed and hyped during the gas price spike of 2008 when it seemed almost anyone would pay a hefty premium to ease some of the pinch at the pump. Now though, with gas prices holding steady at around $3, there’s reason to question whether consumers will flock to unproven, expensive vehicles like the Volt, absent a pressing economic incentive to reduce gas consumption. The Freep takes on this topic today, asking with gas prices so low, will anyone buy a Volt? And this is not mere media hype. Bob Lutz fretted about this possibility last year, when he said

If gasoline stays cheap, then the American public says, “I’m not interested in that; I will keep my Tahoe longer.” It puts us in the industry in a position where we are at war with the customer

This would be a depressingly familiar position for GM to find itself in, especially since it would be a product of The General striving to do something different. Gas prices are slowly beginning to go up again, but there’s no sign that this summer will see the kind of energy price volatility that will have the Volt and Cruze (let alone the Nissan Leaf) flying off dealer lots. Do you see gas prices going up soon? How expensive will gas need to be before Americans see cars like the Volt as a mainstream option? What happens to the Volt if gas prices stay level, or even drop? No only are these intrinsically interesting questions, but there’s also lots of money (including lots of taxpayer money) riding on the outcome. What say you?

By on May 7, 2010

Considering the Suburban so essentially captures the tenuous line between myth and reality in American life, it’s a pity we don’t have 75 years of sales data to put some hard numbers behind the nameplate’s 75 years of history. Luckily, our data does go back to 1995, when America’s whirlwind romance with the SUV was just beginning to get serious. Given that, as Paul points out in today’s history, Suburbans didn’t become popular as family haulers until sometime in the early eighties, it’s safe to assume that 1996-2004 represents the absolute high-water mark for the nameplate’s volume. And ye gods has that volume dropped off ever since.

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By on May 3, 2010

We love us some data here at TTAC, and since we’re already looking at a grip of sales data today, we thought we’d add this excellent infographic that appeared in Sunday’s New York Times to the mix. It depicts America’s per-capita miles driven on the x-axis, and the price of gasoline on the y-axis, and shows that the two aren’t as inextricably linked as some might have thought. As we try to make sense of monthly sales data and look for “the new normal,” this kind of data provides a crucial context for month-by-month trends. We hope you find it as enjoyable and illuminating as we did.

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