Thursday, November 20, 2008

Gasoline prices plunge, the 'Smart' car endangered again

  It took $4 a gallon gas prices to finally get the Smart car to the US. We've started to see a lot of them rolling around for a couple months in the USA, but now it seems like they may be the next endangered species in the roller coaster oil markets we've been seeing for the last 2 months.

  In Southern New Jersey, the price of gas has fallen to half of it's high of over $4 a gallon and now in some towns it is under $2 a gallon in just a short amount of time. What happened to the shortage or the extra usage by China? I guess that was all just a crock. The oil companies made billions and billions in this short gas crisis in America. What happens now to all the environmentally friendly cars that were supposed to be coming out? My guess is that they'll be quietly shelved as the American consumer gets back into their big gas guzzlers and heads down the highway.

  The SUV was quickly becoming as scarce as snow in July in Florida, but now it is poised to make a big comeback. Consumers had to buckle down hard as the oil companies started to drain every last cent of spending money from them just to fuel these beasts. This left the consumer with some choices, either spend all your extra money on this high priced gas or seek alternate transportation. No wonder the Amercian economy is in the shape it is in, you can't spend any extra money if you don't have any left. This is what happened with the economy. Will Americans become consumers again? Of course they will, I see the auto markets improving in 2009 barring anything unforseen problems that may come up.

                                          Rich Baxter   -  Car and Truck Talk Blog 

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