August 29, 2006

Gas: $3 to $4 for rest of decade

This morning's New York Times (registration required) reports that American automakers seem to have concluded that high gas prices will require them to shift their product lines:

The Chrysler Group, which depends more heavily on sales of pickup trucks and sport utility vehicles than any other Detroit automaker, said Monday that it expected gasoline prices to remain at $3 to $4 a gallon for the rest of this decade.

... Mr. LaSorda, who had traveled here for the start of production of a four-door version of the Jeep Wrangler, was asked whether gasoline prices had peaked. "I would hope so,'' he replied, "but we're planning internally as if it is $3 to $4 a gallon.�?

Mr. LaSorda said Chrysler had prepared a business model based on the assumption that gas prices would remain in that range for the next three to four years. That is about the period of time it takes for an automaker to develop a new vehicle.

I doubt they'll leap to create my pickup truck, but it's good to see automakers finally responding, even if the news isn't so bright.

Posted by simon at August 29, 2006 7:57 AM in
Note on photos


Ben said:

If it makes you feel any better, Simon, low-sulfur diesel fuel is coming in the fall.

Unfortunately, 50-state-legal engines aren't due until late next year.

Of course, it's perfectly permissable to buy a used diesel in NY or a new one in PA and then drive it 5,000 miles before registering it in NY...