Excerpt
SUMMARY: Since last year’s Detroit Auto Show, gas prices have dropped by nearly a third. With the new lower prices, demand has gone up for big new SUVs and sedans, but automakers have also switched gears to develop more fuel-efficient cars. Gwen Ifill speaks with John Toll of The Wall Street Journal about the tension between the two trends and convincing car buyers to think long-term.
GWEN IFILL (NewsHour): One year ago, when automakers held their big show in Detroit, a gallon of gas went for an average of $3.31. Now, as the auto show gets under way again, it’s dropped by a third, all the way down to $2.13 a gallon.
And that presents some intriguing challenges this year. On one hand, manufacturers like GM are creating more fuel-efficient cars, like the Volt, a new electric-powered concept car which is designed to get 200 miles from a single charge.
But on the other end of the spectrum, big new SUVs and sedans are rolling off production lines for buyers now less worried about gas prices.
John Toll is the global auto editor for The Wall Street Journal, and he joins me from Detroit.
After all the bright, shiny things at the auto show, John, what are the trends you’re seeing?
JOHN TOLL, The Wall Street Journal: Well, the trend is definitely back toward big trucks and SUVs, in terms of the conversation right now that we’re having about the immediate environment.
The economy is doing well. Gas prices, as you mentioned, are down to $2 a gallon or less, and there is a lot of what a lot of automakers think is a natural progression toward the SUV and truck body style in most of America. So they’re catering to that right now.
At the same time, you have this tension. While dealers want more and more trucks and SUVs, regulators want more vehicles like the Chevrolet Volt or the Nissan Leaf, or the Tesla Model S, vehicles that can run on electricity or batteries and — or can get significantly better fuel economy.
CAUTION: Gas prices are NOT going to stay low.
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