Car or Truck? Why Gas Prices Help Drive Sales of Cars over Light Trucks
When auto companies report their sales figures tomorrow, we’re likely to hear again how the sale of cars (especially gas sippers) is growing, while the sale of light trucks (especially gas guzzlers) is slumping (check out the New York Times story from Sunday “Detroit’s Rebound Is Built on Smaller Cars”). Why? Since April, gas prices have continued to increase. The Energy Information Administration reported that the average retail price of gasoline was $3.96 in May, up from $3.85 in April and $3.62 in March.