Post by "Pop" Stran on May 22, 2006 2:21:25 GMT -5
Record-high gas prices are beginning to take their toll on consumers, and economists warn the rest of the economy will start to feel the pinch soon.
After all, most of us have only so much money to spend; the more we spend on gas, the less we have to spend on Martha Stewart tables, Canon cameras and whatever the local fat food emporium is dishing up.
The University of Michigan's closely watched consumer sentiment survey is at its lowest point since 1993, setting off alarm bells for retailers.
So what's being done about it? Actually, not much.
Public Citizen is beseeching Congress to raise the fuel-economy standards automakers are required to meet.
But even if that happened, which isn't likely, the effect wouldn't be felt for years.
And the fact is, most consumers aren't likely to voluntarily switch to smaller vehicles.
A University of Maine study finds that SUV owners are loyal to their bloated beasts, no matter what.
Maybe so, but Ford is taking no chances.
With its SUV sales plummeting, Ford is thinking of building a plug-in hybrid, which might be even more efficient than existing hybrids, assuming it actually worked.
After all, most of us have only so much money to spend; the more we spend on gas, the less we have to spend on Martha Stewart tables, Canon cameras and whatever the local fat food emporium is dishing up.
The University of Michigan's closely watched consumer sentiment survey is at its lowest point since 1993, setting off alarm bells for retailers.
So what's being done about it? Actually, not much.
Public Citizen is beseeching Congress to raise the fuel-economy standards automakers are required to meet.
But even if that happened, which isn't likely, the effect wouldn't be felt for years.
And the fact is, most consumers aren't likely to voluntarily switch to smaller vehicles.
A University of Maine study finds that SUV owners are loyal to their bloated beasts, no matter what.
Maybe so, but Ford is taking no chances.
With its SUV sales plummeting, Ford is thinking of building a plug-in hybrid, which might be even more efficient than existing hybrids, assuming it actually worked.