No matter who you talk to these days, the price of gasoline usually come up in the conversation. What also comes up is why no one is doing anything about the oil crisis. But didn’t we already miss the boat long ago? Let’s face it America. We as a nation have done a piss poor job when it comes to the way we view the price of gasoline. We constantly failed to recognize that $4 a gallon or higher prices were going to bite us in the butt one day. We just went on our merry way thinking that oil would be abundant forever.
One problem is that no one forced our auto companies to produce more fuel efficient vehicles. The big 3 loved selling those 6,000 lb monsters with those huge V-8’s sucking gas like a drunk on a binge. In Europe which demanded more fuel efficient cars, they are currently at 44 m.p.g. on average with 48 m.p.g. due in 2012. We here in the US fumbled with establishing 35 m.p.g. by 2020.
So here is the new thinking for those who own those gas sucking V-8 engines. I heard this a dozen times last week while I was on vacation. With gas at $4 a gallon, it is not economically feasible yet to dump that V-8 for a more efficient vehicle. Even though people may be paying $200 a month more for gas, a car payment would cost more. With this type of thinking, gas needs to hit $6 a gallon or higher before people will trade in those gas guzzlers. Depending on what you read or hear on the news, we could hit that pricing soon.
With Detroit again seeing profits collapse as sales of big cars plunge, Mr. Domenici says he is worried about the survival of the domestic automakers.
“They talked a good research game,” he says. “But let’s face it, little was being done. They are suffering the consequences and could go broke just like the airlines.”
What Congress didn’t or couldn’t do, the free market is now doing in the form of higher gas prices: forcing Americans into more fuel-efficient cars. Ms. Cischke of Ford says that in the last two months, “We have seen more of a shift in the market than in 20 years of CAFE. People are buying what they need.”
With big truck and SUV sales down by about 50%, it is only a matter of time before we see the big 3 go belly up. What I am looking forward to seeing is when the US government helps bail out the big 3 when their sales of huge vehicles stops completely. After all, we should ALL pay for their dumb ass moves because we were the dummies who bought these monster vehicles. 🙂
How long do you think it will takes us to find an alternative fuel? 5, 10, 20 years or more?
For those who own a gas guzzler, when will you buy a more efficient vehicle? When gas hits $4, $5 , or $6 or more?
PS Don’t plan on GM coming out with the Chevy Volt any time soon. There might not be a GM. 🙁