Recently, fuel prices have been dropping through the country leading to questions about what fuel economy advantage will be with the all-new aluminum-based 2015 Ford F-150. The lighter weight F-150 should be much better on fuel, yet will anybody care about MPG when it launches?
According to AAA’s Daily Fuel Gauge Report website, the average gallon of regular gas costs about $3.59 today. According to a recent study by Experian Automotive, a $1 increase in the cost of a gallon of gas would have minimal impact on consumer buying behavior.
if gas prices increased by $1, in an average month with 1 million unit sales, the Small-Car Economy segment volume would increase by 7,000 units. Conversely, the same price increase would cause the Full-Size Pickup Truck segment to lose [5000 sales]
That’s right – according to Experian, $4.60 per gallon gas would barely effect new truck sales. Does that sound right to you?
A new B20 diesel blend is now on sale in four San Francisco, CA gas stations. Excuse our non excitement, but the blend retails for the same price as non-blended diesel fuel. Why isn’t it cheaper?
Normally the end of July means lower gas prices, not this year apparently. Many analysts expects prices to hit a peak of $4/gallon before failing back in September. Is the answer to higher gas prices building more hybrid pickups? And are collaborations to build them faster better for consumers?
Auto analysts LOVE to declare that high gas prices will ultimately kill pickup truck sales. At first glance, this reasoning makes some sense – if gas is $5 per gallon and a Tundra has a 26 gallon fuel tank, every fill-up will cost $130. If you just felt a little pain in your gut at that number, you’re not alone. When gas prices approached $5 per gallon this time last year, truck sales fell precipitously.
However, was this a knee-jerk reaction or an indicator of a shift in consumer demand?
First, let’s consider this question historically.