Small Dips in Gas Prices Send Drivers Back to SUVs

Consumers viewing fuel efficiency as 'one factor' again

By Nick McMaster, Newser Staff

Posted Aug 12, 2008 2:04 PM CDT

(Newser) – Oil prices have been falling since mid-June, and though it’s debatable whether speculators or market fundamentals drove the boom (and now possible bust), it is clear that $4 a gallon gas crimped demand. But for how long? With prices now again below that psychological threshold but still $1.19 more than a year ago, auto industry data suggest that even mild relief could reverse the trend toward fuel efficiency, the LA Times reports.

Consumer interest in gas-electric hybrids is down 34% since June, while desire for undercover guzzlers like SUV compact crossovers is up, auto industry tracker Edmunds.com says. "With the initial shock of high gas prices fading, consumers are returning to rationality and again viewing gas consumption as just one of many factors when considering their next vehicle," said Edmunds’s CEO.

This photo, supplied by General Motors, shows the 2009 Cadillac Escalade Hybrid, which GM calls the first large luxury SUV with fuel-saving hybrid technology. (AP Photo/General Motors)

Nissan Motor Co.'s electric car EV-01, foreground, and hybrid car are seen at the automaker's test course in Yokosuka, near Tokyo, Wednesday, Aug. 6, 2008. (AP Photo/Shizuo Kambayashi)

In this July 16, 2008 file photo, a motorist gets ready to pump gasoline into her minivan at the Mobil Station in Andover, Mass. (AP Photo/Charles Krupa)

A customer holds a gas pump handle at an Exxon station in Vancouver, Wash., Thursday, July 31, 2008. (AP Photo/Don Ryan)

In this Feb. 8, 2008 file photo, a man pumps gas at an Exxon gas station in Waltham, Mass. (AP Photo/Lisa Poole, File)

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Small Dips in Gas Prices Send Drivers Back to SUVs

Consumers viewing fuel efficiency as 'one factor' again

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Iran Blockade Could Send Oil Up 50%

But international forces would win the ensuing conflict

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Electronics maker to do more than just provide batteries

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Barron's projects those averages for next spring

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It's oil giant's best quarter since 2008

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OTHER STORIES ON OUR RADAR

gas • fuel efficiency • SUV • gas prices • electric cars • oil price • hybrid car • oil prices

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Iran Blockade Could Send Oil Up 50%

But international forces would win the ensuing conflict

GM Teams With LG on Electric Cars

Electronics maker to do more than just provide batteries

Brace for $150 Oil —and $4.50 Gas

Barron's projects those averages for next spring

Now Are You Ready for Electric Cars?

Seth Fletcher explains why America needs to learn from its mistakes

Exxon Scores $11B in Profits

It's oil giant's best quarter since 2008

About Us

Site

Newser By Users

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