Gas prices aren’t high enough. Really… they aren’t. Do you disagree? You should!!
Today (october 4th, 2005) we learned that SUV sales dropped dramically after the huge gas spikes that hurricane katrina caused. Did you see that coming? I sure did. Gas prices have a direct effect on the economy. This you know. What you might not know is the amount of an effect it has on many things.
I forecast that SUV sales would drop significantly when gas hit $3 per gallon. You may see this as a bad thing, but for those of us who have waited for the auto industry to increase mileage instead of horsepower, it is a blessing!
The auto industry has been made aware that Americans, at least those concerned about our daily driving costs, choose not to drive around in land yachts. Ironically, the auto industry will need to adapt… a sink or swim anology to follow the land yacht comment!
Now for what you all have been waiting for… my new forecast.
The auto industry will adapt or go out of business. They will slow the production of SUVs and Trucks because several people who don’t need these vehicles can’t afford to drive them....
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