Report: Oil Price Spike to Hurt Big Three

  • Some researchers say that car makers risk future profits if they continue to make fuel-inefficient vehicles. (Photo by Gustavo Schonarth)

For the last several years, American car makers have seen their profits falling. Now, a new report says the Big Three will take even steeper hits to their bottom lines if the trend in higher gas prices continues. The Great Lakes Radio Consortium’s Mark Brush has this report:

Transcript

For the last several years, American car makers have seen their profits
falling. Now, a new report says the Big Three will take even steeper hits
to their bottom line if the trend in higher gas prices continues. The Great
Lakes Radio Consortium’s Mark Brush has this report:


The authors of the report looked at potential impacts to the U.S. car
industry if gas prices go up. They found that if they go up, profits will
fall, and more jobs will be lost.


Walter McManus is with the University of Michigan Transportation Research
Institute. He co-authored the report and says it should serve as a wake up
call to American car makers.


“It shows them that it is costing them a lot more to sell the fuel-inefficient vehicles than fuel-efficient vehicles, that they are putting
jobs at risk and putting their profits at risk because they are unwilling to
accept that the world has changed.”


Representatives from the auto industry say they already offer many fuel-efficient models, but that overall, American consumers rank fuel economy
lower than things such as power, cargo space, and safety ratings.


For the GLRC, I’m Mark Brush.

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