Fuel Prices Hit Auto Factories

  • High gas prices are cited as one cause for SUV and RV factories closing (Photo by Ben VanWagoner)

High gas prices are changing what people
buy in car showrooms. Gas guzzlers just aren’t
selling as well anymore and it’s affecting US
manufacturers. Mark Brush reports:

Transcript

High gas prices are changing what people
buy in car showrooms. Gas guzzlers just aren’t
selling as well anymore and it’s affecting US
manufacturers. Mark Brush reports:

GM announced it’s closing four of its truck and SUV plants. And Winnebago Industries
recently announced they’re closing their biggest RV manufacturing plant. High fuel
prices are helping to drive the closings.

For the last fifteen years, sales of SUVs and light trucks have beat the competition from
smaller cars. But that’s changed in the last couple of months. Now, smaller cars are
selling better.

Charles Territo is with the Alliance for Automobile Manufactures. He says the recent
hike in gas prices have hit a nerve.

“I think for years people have been trying figure out what that pressure point is. When
consumers will actually change their driving habits and change their behavior. I think
we’re finding now that we’ve probably reached that price.”

Federal researchers say that people are driving a lot less. The Federal Highway
Administration reports that the number of miles traveled for the month of March was one
the sharpest drops on record.

For The Environment Report, I’m Mark Brush.

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