In fact, share prices of three top car rental companies have been on a long-term decline, causing them to revise earnings projections. Auto parts makers have been hit even harder, with companies cutting jobs in the U.S. and Canada. Car dealers are also feeling the results of high gas: a consumer shift to smaller cars. Chrysler has been offering cash rebates for SUVs such as the Dodge Durango (pictured above) and three others. Other U.S. auto makers are offering extended employee pricing, zero percent finance rates or other incentives.
It’s no surprise that higher gas prices have affected the U.S. auto industry in many ways. However, depending on whom you believe, auto sales are either at the worst they’ve been in fifteen years or in ten years [NY Times; free registration req'd].
Canadian auto sales are also down, but some import brands are up. Toyota Canada set a June sales record with a near-9% gain. Likewise, Honda grew in the U.S. thanks to top fuel efficiency in the small vehicle market (such as the Honda Fit, pictured above). On the other hand, Toyota USA suffered a greater than 10% drop in sales in June.
Fans of Michigan son Iggy Pop know the innuendo of the lyrics from the song Pumping for Jill. He might mention “the gas station where I work,” but he’s not talking about work. In an odd flip of reality, a 34-year old woman was arrested on prostitution charges after she accepted a $100 gas card in return for offering a man sex. The man was charged with promoting prostitution.
Iran’s government subsidizes the price of gasoline for the general public. Imagine gas prices at 40 cents a gallon instead of 4 dollars a gallon. Well that has come to an end for drivers who drive luxury cars in Iran. They cut off all luxury drivers from cheap gas.
I’m starting to wonder if we couldn’t learn a little by making people who drive SUV’s and Hummers pay a bit more at the pump. Call it the idiocy tax or something.
