Thursday, March 17, 2011

Ford (F), GM (GM) Toyota (TM) Ready for $4 Gas? Maybe

The way the auto industry operates in Europe and America are different, and the more volatile gas prices have an unpredictable element to them in the U.S., making it hard for manufacturers like Ford Motor (NYSE:F), General Motors (NYSE:GM) and Toyota (NYSE:TM) to plan accurately and effectively.

Just the time they think they're ready for changing conditions in the U.S. market, gas prices swing one way or the others, and they find themselves struggling to sell vehicles.

So even with the majority of analysts and professionals believing gas prices in America will reach $4 a gallon on average soon, consumers remember a couple of years ago when that happened, and it wasn't too long before they fell again, leaving them wanting to exchange vehicles in response.

Concerns from auto manufacturers are consumers could hold back on acquiring new vehicles at this time to see how long the high gas prices last, as they're already being pushed down on world events.

So while the auto makers are prepared for high gas prices with a variety of offerings for consumers concerned about costs, they have to temper that with vehicles that would sell well if gas prices fall for a period of time again.

In the current economic situation, it's a thankless and impossible job, but one they have to attempt to work out if they want to be successful.

At this time they seem to be balanced in their vehicle offerings, but would face supply problems if gas prices take off one way or the other for a prolonged period.

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