Kestas
Staff member
Originally Posted By: grampi
Perhaps you have a short memory. Remember when gas went over $4 back in '08 and the dealerships had all the gas hogs sitting on their lots collecting dust? They couldn't give them away. It won't be any different this time around.
Do you remember how long this lasted? It was a blip in our economy, then people went back to buying big cars. It takes a minimum of three years to take an automotive concept to production. How are the automakers to know what the gas prices will be three years from now?
It would be a nightmare if the automakers gear up for small car production, only to have gas prices drop to to $2.50 with the market demanding large vehicles. I also remember what happened back in the late 70s. Some automakers did gear up for small car production. Once the price of gas went down, it was the automakers that continued to make large cars who were in good shape.
After every international crisis, where the price of gas spikes, the price of gas comes down hard. This has been the trend over the past 100 years. It happened after the oil embargos of the 70s, and after the speculation crisis three years ago. After this blows over - mark my word - we are sure to see the price of gas come down. Maybe not this summer, but it will come down from the highs we're seeing today.
I agree that we'll see a clamor for small cars, similar to what we saw three years ago. That's why I joked to people last year to buy up all the used Geo Metros they could get their hands on, to sell for profit during this crisis, which will only be temporary.
We have this discussion every time the price of gas spikes.
Perhaps you have a short memory. Remember when gas went over $4 back in '08 and the dealerships had all the gas hogs sitting on their lots collecting dust? They couldn't give them away. It won't be any different this time around.
Do you remember how long this lasted? It was a blip in our economy, then people went back to buying big cars. It takes a minimum of three years to take an automotive concept to production. How are the automakers to know what the gas prices will be three years from now?
It would be a nightmare if the automakers gear up for small car production, only to have gas prices drop to to $2.50 with the market demanding large vehicles. I also remember what happened back in the late 70s. Some automakers did gear up for small car production. Once the price of gas went down, it was the automakers that continued to make large cars who were in good shape.
After every international crisis, where the price of gas spikes, the price of gas comes down hard. This has been the trend over the past 100 years. It happened after the oil embargos of the 70s, and after the speculation crisis three years ago. After this blows over - mark my word - we are sure to see the price of gas come down. Maybe not this summer, but it will come down from the highs we're seeing today.
I agree that we'll see a clamor for small cars, similar to what we saw three years ago. That's why I joked to people last year to buy up all the used Geo Metros they could get their hands on, to sell for profit during this crisis, which will only be temporary.
We have this discussion every time the price of gas spikes.