Automotive Sales and Gas Prices
Imagine for a moment you are on the road, driving to work, school or wherever your day may take you. Do you ever take notice of the types of vehicles other drivers are commuting in? What factors influence the type of vehicles people drive? If asked, how many of those drivers would cite rising gas prices as the main factor in the type of vehicle they drove? For the majority of commuters, high gas prices are mostly likely a major influential factor in what they choose to drive. As evidenced by shifting trends in the buying habits of auto consumers, automotive sales are directly affected by the ever rising prices of oil and gas.
Where Did All The SUVs Go?
During the 1990s large sport utility vehicles became extremely popular with the automotive consumer. SUVs such as the Ford Explorer, Lincoln Navigator, Chevrolet Tahoe and Dodge Durango seemed to dominate the roads. This popularity made SUVs the fastest growing segment in the automotive industry. The economy was strong, gas prices at the time were low, and fuel economy was typically not the first thing buyers considered when making a vehicle purchase. Large SUVs require more fuel than the typical automobile, due to their excessive size, weight and poor fuel efficiency. In the 90s though, this was nary a concern.
The 90s have come and gone and the world is a much different place. The economy is in poor shape and gas prices have been setting record highs. As gas prices have continued to increase over the past few years the consumer interest in full-sized SUVs have sharply fallen. Suddenly the fuel guzzling SUV is no longer popular, and fuel economy is at the forefront of considerations for the automotive consumer. Evidence of high gas prices and the effect on the automobile industry has been well reported. MSNBC (2005) stated, “Several automakers reported strong car sales Monday, but SUVs took a hit industry wide in the U.S. market as gas prices skyrocketed following... [continues]
Imagine for a moment you are on the road, driving to work, school or wherever your day may take you. Do you ever take notice of the types of vehicles other drivers are commuting in? What factors influence the type of vehicles people drive? If asked, how many of those drivers would cite rising gas prices as the main factor in the type of vehicle they drove? For the majority of commuters, high gas prices are mostly likely a major influential factor in what they choose to drive. As evidenced by shifting trends in the buying habits of auto consumers, automotive sales are directly affected by the ever rising prices of oil and gas.
Where Did All The SUVs Go?
During the 1990s large sport utility vehicles became extremely popular with the automotive consumer. SUVs such as the Ford Explorer, Lincoln Navigator, Chevrolet Tahoe and Dodge Durango seemed to dominate the roads. This popularity made SUVs the fastest growing segment in the automotive industry. The economy was strong, gas prices at the time were low, and fuel economy was typically not the first thing buyers considered when making a vehicle purchase. Large SUVs require more fuel than the typical automobile, due to their excessive size, weight and poor fuel efficiency. In the 90s though, this was nary a concern.
The 90s have come and gone and the world is a much different place. The economy is in poor shape and gas prices have been setting record highs. As gas prices have continued to increase over the past few years the consumer interest in full-sized SUVs have sharply fallen. Suddenly the fuel guzzling SUV is no longer popular, and fuel economy is at the forefront of considerations for the automotive consumer. Evidence of high gas prices and the effect on the automobile industry has been well reported. MSNBC (2005) stated, “Several automakers reported strong car sales Monday, but SUVs took a hit industry wide in the U.S. market as gas prices skyrocketed following... [continues]
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(2008, 11). Automotive Sales and Gas Prices. StudyMode.com. Retrieved 11, 2008, from http://www.studymode.com/essays/Automotive-Sales-Gas-Prices-183783.html
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"Automotive Sales and Gas Prices." StudyMode.com. 11, 2008. Accessed 11, 2008. http://www.studymode.com/essays/Automotive-Sales-Gas-Prices-183783.html.
