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Stepping on the Gas Needn't Crash Detroit

Wall Street Journal Original article ›

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Better balance sheets, higher resale values, the trend away from subprime financing, and a lineup of vehicles that give better mileage (even with trucks acounting for 50% of sales) with the shift to lighter crossover vehicles, will help Detroit automakers face higher gas prices. These factors should help prevent a replay of the very serious problems of 2008, when gas prices exceeded $4.00 a gallon and the U.S. faced a financial crisis. At that time in 2008 vehicle sales declined by 18% and truck sales were down by 25%, according to Credit Suisse.

The new generation of post-2008 SUV's and light trucks from the Detroit Big Three automakers

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Fuel efficiency has increased and sales are up. Will the sales withstand another switch back to smaller cars if fuel prices spike in 2011?

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Grouped Articles

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Stepping on the Gas Needn't Crash Detroit

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