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Industry Talks about the Effect of Gas Prices

The Detroit Auto Show was full of surprises and new vehicles. One focus of the show was on the prices of gasoline and this effect on the kinds of cars that the auto industry makes. For example, people point out that when gas was hitting the price of nearly four dollars per gallon, the selling of those small more gas efficient vehicles was tremendously high. During that time, the bigger more luxurious cars that were being made were going untouched left to rot on the lot. This is why those professionals in the auto industry point out that price of gas can be the rise and the fall of some major companies. 

Those at the auto show pointed out that the price of gasoline can put a halt to projects that had been in the making for years in just a matter of days. Ford commented that they are starting to base what they make on the price of gasoline. Most automakers agree with this idea. 

To make their point, automakers pointed out that the recent hike in the price of a gallon of gasoline has seen the market of small cars once again dominating. Look at the sales from three or four months ago and the sales of trucks were outweighing the small cars. Professionals in the field point out that consumers buy according to what the price of gas is, so until it is way down, those bigger vehicles are not going to be a product that they purchase. 

Meanwhile, professionals in the industry said that they were trying to find lighter materials in order to make the bodies of the vehicle in hopes that a lighter vehicle would give them more gas mileage. However, the cost of finding these materials is going to be passed onto consumers. As of right now, with everyone trying to save money, this news will not go over well for those that are looking to buy a new car.