Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    UAW spokesman's messages reveal effort to maintain automakers 'wounded for months'

    September 22, 2023

    Tesla’s Supercharger community will get the nod

    September 21, 2023

    European 2024 Audi This autumn E-Tron Debuts Piquing Interest for Updated U.S. Version

    September 21, 2023
    Facebook Twitter Instagram
    • About Us
    • Contact
    • Privacy Policy
    • Disclaimer
    Facebook Twitter Instagram Pinterest VKontakte
    The Auto JournalThe Auto Journal
    • News
    • Car
    • Bike
    • EV
    • Comparisons
    • Reviews
    • Guide
    The Auto JournalThe Auto Journal
    Home » Gas costs not denting demand for brand new automobiles
    News

    Gas costs not denting demand for brand new automobiles

    Editor - The Auto JournalBy Editor - The Auto JournalJune 27, 2022Updated:June 27, 2022No Comments2 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Record gasoline costs have some U.S. shoppers contemplating electrical automobiles sooner than anticipated, however the surge has not roiled the business or prompted the type of seismic shift in shopping for habits seen throughout earlier worth will increase.

    In 2008, the price of gasoline peaked at greater than $4 per gallon, and shoppers deserted hulking SUVs and pickups in droves. Automakers scrambled to retool factories to provide smaller, fuel-efficient sedans.

    Today — even with the nationwide common just lately topping $5 for the primary time — there’s been no such panic.

    Aside from a proliferation of electrified choices, specialists level to a major enchancment within the gas financial system of most internal-combustion automobiles, together with massive pickups and utilities. A 2022 four-wheel-drive Ford F-150, for instance, is rated at 21 mpg mixed, 50 % higher than a comparable 2008 mannequin.

    Although recession fears are mounting, the financial system is in a a lot stronger place than it was in 2008. Unlike that point, prime executives from Ford Motor Co. and General Motors say there’s sturdy demand for brand new automobiles, at a time when the worldwide semiconductor scarcity has stored inventories low.

    “We’re in a very different situation now,” Ed Kim, vice chairman of business evaluation at AutoPacific, stated in an interview. “We’re not in that dire downturn state we were in back in 2008. We have plenty of consumers that have money to spend, but the marketplace isn’t able to provide product.”

    That possible will not change within the close to time period.

    Consulting agency AlixPartners final week stated it expects provide chain points to proceed suppressing inventories by 2024. It’s unclear how lengthy gasoline costs will stay excessive — costs dipped barely final week, based on AAA, and President Joe Biden has requested Congress to droop the federal fuel tax for 3 months to avoid wasting motorists about 18 cents a gallon. But most forecasters do not envision a serious affect even when the surge lasts.

    “The story is really still this pent-up demand that sort of absorbs the depressing demand not only of gas prices, but inflation concerns,” Mark Wakefield, international co-leader of the automotive and industrial follow at AlixPartners, stated in a media presentation final week. “Consumers remain in the mindset of, ‘Can I find one?’ and ‘Where can I find the best deal?’ They have the capacity to purchase.”

    Source: www.autonews.com

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous Article5 Canadian firms on the 2021 Automotive News Top 100 Global Suppliers List
    Next Article Let’s Take A Look At The Power Free, Suzuki’s Very First Motorcycle
    Editor - The Auto Journal
    • Website

    Related Posts

    UAW spokesman's messages reveal effort to maintain automakers 'wounded for months'

    September 22, 2023
    Read More

    Tesla’s Supercharger community will get the nod

    September 21, 2023
    Read More

    One Dead, Dozens Injured In High School Student Bus Crash

    September 21, 2023
    Read More

    VinFast Focuses on Europe to Beat Chinese Rivals to Market

    September 21, 2023
    Read More
    Add A Comment

    Leave A Reply Cancel Reply

    Editors Picks

    UAW spokesman's messages reveal effort to maintain automakers 'wounded for months'

    September 22, 2023

    Tesla’s Supercharger community will get the nod

    September 21, 2023

    European 2024 Audi This autumn E-Tron Debuts Piquing Interest for Updated U.S. Version

    September 21, 2023

    One Dead, Dozens Injured In High School Student Bus Crash

    September 21, 2023
    Top Reviews
    Advertisement
    The Auto Journal
    Facebook Twitter Instagram Pinterest YouTube LinkedIn
    • About Us
    • Contact
    • Privacy Policy
    • Disclaimer
    © 2023 The Auto Journal. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.