Consumers Tell SUVs to Stick It
Impressed by record high gasoline prices & a bleak economic picture, US consumers have responded by 1) reducing spending on automobiles & 2) allocating the money to more fuel-efficient models. In other words, the free market is at work. We are finally seeing what it takes to get people to change ... & it takes pain.
The auto makers are now recognizing the "seismic shift in consumer preferences" & unfortunately for them, they are not prepared to respond to updated demand. For the most part (& especially for the US automakers), car makers apparently didn't see this coming. Ford & GM are paying dearly for the lack of foresight ... they just don't have anything to sell the newly conservation-minded customer who is looking for the quick fix weight loss program after years of hogging out at the gas pump.
It's good to know that, although late to the party, the consumers are still - on average - rational thinkers who will change when things get tight. The SUV is now DOA. They were fun while they lasted, but not so fun now in a world of $60 fill-ups. Good riddance ...
Comments
>We are finally seeing what it takes to get people to change ... & it takes pain.
Pain is a great teacher.
A similar thing happened in the 1980s. Read about the rise of Japanese automakers in Halberstam's "The Reckoning." It's a great book.
Posted by: Dave G | April 3, 2008 10:30 AM