Wednesday, April 11, 2012

In Response to Rebecca's Post

If this trend continues, what kinds of things will you do in order to cut back on the money you spend weekly on gas? Do you think that people will change their lifestyles to save money?

Gas prices were at record highs around 2005 until 2007.  During this time period automakers realized people's demands are changing.  The trend which used to be SUVs and Minivans, was starting to change.  People wanted smaller more affordable cars that were more fuel efficient.  The auto industry responded in two different and unique approaches.  The foreign manufacturers listened to the wants and needs of the customers.  Toyota created the Prius, Honda created smaller more efficient cars, even the luxury cars such as BMW, added turbos and cut down on the actual size of the engines.  
The American manufacturers on the other hand, tried to push their cars onto the consumers.  This proved to be devastating causing General Motors to declare for bankruptcy, Chrysler nearly went out of business, and Ford nearly going under as well.  After this scare, they responded in a huge way. They created some of the best alternatives out there.  The Chevy Volt is truly revolutionary, and is now a company other competitors are trying to catch up to.  
Although consumers changed some, people still drive by themselves, public transportation budgets are still being cut.  

What is the price of fuel that would really create a change in the "American way"?  Is it $7 a gallon?  $10? $20?  There will be a point in which people will look to carpooling and public transportation again as most other countries in the world do.  Do you see American's having to face that fact in the near future?

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