High Gas Prices Aren't Giving The Blues To Motown Car Makers

[Purveyor]

When gas hit $4 a gallon in 2008, Detroit's Big Three auto makers took it on the chin as American demand for big, fuel-thirsty SUVs and trucks suddenly disappeared. But even with gas prices again hovering north of $4, American car companies are whistling a much happier tune—all the way to the bank.

According to industry reports, new car sales—particularly for small and compact cars—soared for U.S. automakers. Last month, when gas prices were on a steady rise, American small car sales jumped 77 percent compared to a year ago. (Japanese auto makers, recovering from March's disasters, saw a modest 22 percent increase.) And demand—20 percent stronger than the previous year—will keep Detroit humming to the tune of 13 million new car and truck sales this year, up from 2009's number of 10.4 million.

Analysts are crediting the markedly different outcome to the lessons learned from the last gas price spike. Jesse Toprak of TrueCar.com told the Detroit News that American car makers "are significantly better prepared for gas price fluctuations. They have cars they can sell and make money on."

But are Americans jumping at the chance to trade-in old gas-guzzling Betsy for a new, high-tech, fuel-sipping Chevy Volt? Not really. Lou Standfor, a Ford dealership owner in Ann Arbor said:

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http://consumerist.com/2011/05/high-gas-prices-arent-bring-the-blues-to-motown.html

[Po_d Mainiac]

1. Loading the dealer lots with inventory, ain't selling cars..unrec'd n/t