At the preview days for the NY Auto Show the big question on auto execs minds was “What happens if gas hits $5 a gallon?”
More than one exec said it could cause auto sales to slow by 2 million, or a pace of 11 to 11.5 million vehicles a year, instead of the expected 13 to 13.5 million, said CNBC.
The fear is that $5 will cross a psychological barrier that will keep people from the showrooms altogether. At $4.50 a gallon, people will switch to smaller, fuel efficient cars, still posing a concern to the auto industry.
Fuel efficient cars such as the new Ford Taurus SHO, Hyundai 2012 Accent and 2011 Chevy Eco Cruze, took some of the spotlight at the Show as a result. –Bill Damsky
Source: CNBC via The Christian Science Monitor, The People’s Daily
Photo via Reuters
