Home / Auto News / News article: Automakers Don't Like Rising Gasoline Prices Any More Than You Do - AutoGuide.com News
 |  Jan 23 2011, 4:38 PM

You think you hate those rising gas prices – well, drivers aren’t the only ones. Automakers aren’t too pleased about skyrocketing gas prices either as they could undermine years of design and manufacturing planning.

Gas prices could hit $4-plus per gallon sooner rather than later, and that could spell doom for automakers. This is due not only to the price of gas, but also materials that make up car components such as steel, aluminum, copper and platinum.

When the price of gas goes up, so does the demand for smaller cars, like in 2008 when gas prices reached all-time highs and so did interest in cars like the Toyota Corolla, Honda Civic and Ford Focus. But when gas prices dropped soon after, these small cars were stuck to gather moss on dealer lots.

And although the gas prices have been rising slower than in 2008, it has still been following the same pattern – it went from 32 percent in January to $4.11 per gallon in July, then fell back to $1.65 by year end. Even though the average U.S. gas price is 25 percent below where it was then, experts are reporting a switch to smaller vehicles.

“We’re seeing consumers quickly shift back to a higher mix of fuel-efficient cars and now trucks are actually starting to slow down,” said Bob Carter, U.S. market brand chief for Toyota Motor Co. “Sixty days ago, we found the opposite happening.”

Would you switch to a smaller and more fuel-efficient car now that gas prices are going up? Let us know your thoughts in the comments section below.

[Source: Reuters]

  • David Starr

    I have seen a unique way that a dealership down here in Orlando is fighting back on gas prices, they are giving away memberships to MyGasDiscount.info – that gives 50% off of gas – if you buy a car there. They didn’t have it on a sign but the salesmen mentioned it.

  • artyirish

    Gasoline has been predicted to hit $5 dollars a gallon in 2012. But right now, I’m paying less than $2 a gallon at the gas station. Any gas station!!!!

    I watched a video and joined a savings program that offers member 40% off on gasoline. It’s free to sign-up and you can start saving today. This isn’t some sort of SCAM!!! My friends, family and I started this program 2 months ago and we are paying less than $2 a gallon. This program has been a blessing in my life and I want to share the news everyone out there.

    Watch the video here.

    Arty

  • Tom

    I drive a Hemi. I don’t care how high prices get, I’ll just work a few more hours under the table and it all breaks even :) I would never sacrifice comfort to * save fuel* when the world has endless amounts of oil. It was just proven 2 weeks ago, that the oil feilds fill up by themselves over time. Hence no such thing as peak demand. F U Government and FU big oil and FU!!!! speculaters :)

  • J. Pirate

    BE AWARE that the post by David Starr is likely to be a attempt to scam. He has had postings that are starting to show up on media sites in the comments sections. However, be aware that these postings are showing up with a Google search of: MyGasDiscount.info+scams. I’ll make an educated guess that Arty is David or one of his cohorts.

    ole_pirate

  • David Starr

    Hi Pirate,

    I don’t have an “Arty” working with me. But I am here to answer the claim of “scam.” First, I would like to offer documentary proof that MyGasDiscount.info does actually pay. Anyone who wants to see the proof that MGD is real, please email me at davidnews at stalkerwatch.com and I will be glad to send it to you.

    To Pirate — please show some proof that it is a scam (you will be unable to do so). Why do people open their mouths when they have absolutely no clue or proof to what they are talking about? Any idea Pirate?