Gasoline Nears $3 in U.S., Hurts Bush, General Motors

[1931Chevy]

http://www.bloomberg.com/apps/news?p...d=ax7vFNH8TWY8

Gasoline is climbing toward the U.S. record of $3.07 a gallon, and the damage is piling up for President George W. Bush and General Motors Corp.

Higher fuel prices may deepen losses for makers of gas- guzzling sport utility vehicles and trim sales for Wal-Mart Stores Inc., the world's largest retailer. Oil refiners such as Tesoro Corp. and Japanese makers of higher-mileage hybrid cars are likely to benefit.

A shift away from the largest sport utility vehicles and passenger cars led to a $2.2 billion decline in profit from car and truck sales last year at Detroit-based General Motors, the world's biggest maker of cars and trucks. Rising fuel prices were part of the reason sales of the biggest vehicles fell, said Jerry Dubrowski, a General Motors spokesman.

Toyota Motor Corp., maker of the Prius that runs on a hybrid gasoline-electric engine, and Honda Motor Co., which also offers hybrids, stand to gain, said Thad Malesh, president of Automotive Research Group in Moorpark, California.

``It's going to hurt GM in the short term,'' he said.

General Motors said on Feb. 24 that it would cut spending on the next versions of its mid-size sport utility vehicles, the GMC Envoy and Chevrolet TrailBlazer. The decision was a sign that the company sees diminishing sales potential for those models.

Toyota Motor, based in Toyota City, Japan, more than doubled sales of its Prius last year.

``Clearly gas prices can impact car buyers' product decisions,'' said Paul Krell, a spokesman for the United Auto Workers union in Detroit.

General Motors will introduce a hybrid version under its Saturn brand this summer, said Sherrie Childers Arb, a spokeswoman for GM on environment and energy issues. ``I don't think volatility in fuel prices is good for anyone,'' she said.

[ChevroletRevived]

Good time for the Aveo to be coming out, that's for sure. I don't think GMT-900 sales will slow down though, most buyers that can afford SUV's like that don't care because they can afford it.

[genjy]

My baby-hauler will be some sort of 4-cylinder crossover or small SUV. I need the space for the baby seat and the travel system but there's no way I am buying a v6 or v8 vehicle with gas prices going up like this.

Currently it's a toss up between the Vue (hate the style), the Element (hate the doors), and the Outlander (it's a Mitsubishi).

[Mrbowtie]

Originally Posted by genjy

My baby-hauler will be some sort of 4-cylinder crossover or small SUV. I need the space for the baby seat and the travel system but there's no way I am buying a v6 or v8 vehicle with gas prices going up like this.

Currently it's a toss up between the Vue (hate the style), the Element (hate the doors), and the Outlander (it's a Mitsubishi).

Why not the HHR?
After I test drove one and sat in it a while, I was hooked.
It has more room than you think.

Why does 3.00 dollar gas only hurts GM?

[Quickening]

Originally Posted by Mrbowtie

Why not the HHR?
After I test drove one and sat in it a while, I was hooked.
It has more room than you think.

Why does 3.00 dollar gas only hurts GM?

Because "no other company" makes big burly cars/trucks/suvs that gas guzzle....

[genjy]

Originally Posted by Mrbowtie

Why not the HHR?
After I test drove one and sat in it a while, I was hooked.
It has more room than you think.

Why does 3.00 dollar gas only hurts GM?

Because I need the height of a crossover/small SUV for installing and uninstalling the baby seat. It's just much easier with a higher vehicle and it saves my back. I don't think a car like the HHR or the Matrix or the Focus Wagon is high enough for my need.

[genjy]

Originally Posted by Quickening

Because "no other company" makes big burly cars/trucks/suvs that gas guzzle....

It would hurt GM the most. With like half a dozen brand new, big volume GMT-900 models and 3 Hummer models, GM is going to feel it for sure if high gas prices start affecting consumer choice. Trucks is where GM's money is.

[ChevroletRevived]

Did you try the Equinox?

[GM-10]

Originally Posted by genjy

It would hurt GM the most. With like half a dozen brand new, big volume GMT-900 models and 3 Hummer models, GM is going to feel it for sure if high gas prices start affecting consumer choice. Trucks is where GM's money is.

GM is not the only company that has an exposure to hig prices and falling truck sales. Its just that GM is more exposed to a truck bias than some of it competitors.

[genjy]

Originally Posted by ChevroletRevived

Did you try the Equinox?

I might try it when I get around to it, since the Vue's style just isn't my cup of tea.

[Ming]

Originally Posted by Mrbowtie

Why not the HHR?
After I test drove one and sat in it a while, I was hooked.
It has more room than you think.

Why does 3.00 dollar gas only hurts GM?

My guess is that they are referring to the importance of the new SUVs and Trucks as being vital to GM's recovery --- that or they are falling back on tired stereotypes of GM = Gas Guzzler detailed here: "GM in America is a Truck and SUV Company" - Shaking the Gas Guzzler Image

[asim]

I am just so tired of these articles now...

[dindak]

$3 / gallon is the norm now, get used to it boys and girls.

If you can afford an SUV, you can afford the extra few bucks a fill up. Otherwise get a Cobalt or an Aveo.

[RamJet502]

Originally Posted by dindak

If you can afford an SUV, you can afford the extra few bucks a fill up.

Agreed

[Xcursionliveson]

Originally Posted by genjy

I might try it when I get around to it, since the Vue's style just isn't my cup of tea.

Equinox or Freestyle, the Vue is hideous, and the others are foreign......