Experts Predict High Gas Prices Could Crush Truck Sales
Experts are predict that the high price of gas could crash truck sales in America. The last time we hit a temporary high on gas prices pick-up truck sale dropped by over 47%. Analysts are predicting that, this time the damage to truck sales my be permanent. Here's some tips when "Buying a Truck"
It was a month ago when General Motors announced it was adding another full line shift at it's Flint Michigan truck plant because of the increasing in truck sales, now rising gasoline prices are threaten to erase the recent success's.
Market analysts and automotive experts say, "as long as gasoline prices stay below $4 per gallon, the increases likely won't have a devastating effect on truck sales". Diesel trucks suffer sales hits first because of the higher fuel prices.
"If we would see a spurt to $4 a gallon (it would drive) a stake through the heart of truck sales ... $4 a gallon will trigger that," said analyst Bill Visnic of Edmunds dot com.
Oil prices recently closed the highest ever in the history of oil trading. We saw a rise above $100 a barrel in recent days and the average price of a gallon of regular gas nationwide averaged $3.37 a gallon this past Friday.
The price is about 65 cents a gallon more than a year ago, that statistic from AAA.
Dana Rouse, shop chairman for UAW Local 599, which represents Flint Truck workers, said he's heard employees talk about their worries over gas prices and the potential effect on their jobs, but he's received no indication that GM is slowing down its plans to increase production with the additional shift.
GM announced in January that it was adding a third shift at Flint Truck, a move that will create 750 new jobs. employees were told GM is considering the addition of a paint facility and other upgrades here as well.
The third shift is expected to start production at some point after July 1.