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Wednesday, May 03, 2006

Comments

Joel A

No. And my reasons would be a good topic. Thanks!

Sylvia

Agreed. The Honda Fit is picking up steam. It has shortcomings, but overall is quite popular and the real-world MPG reported by new owners is showing that the Fit is economical.

Richard

Considering that at one time we Amenricans were spending just over 5% of our disposable income on gas, has anyone considered what the proliferation of high milage compact cars have done to big oil profits? Have you not noticed that in countries where these small cars originated whether Europe or Asia the price of gas has alway been significantly higher than what we were paying at the time in the U.S.? Currently, even at $3.00 a gallon we are only spending a little over 3% of our disposable income on gasoline. What do you think the oil companies are thinking? Could it be less about supply and demand and more of what the market can stand. Someone getting 30 plus miles to the gallon though they might complain at the pump, can still afford to fill up... and the oil companies know this. Gas efficient cars and even modern SUVs have been slowly erroding company profits, how long did we think it would continue unabated? As vehicles become more fuel efficiant the price will continue to inflat.
Remember what happened in California gold rush towns back in the 1800s; prices went up because people had the money/gold.
Shortages don't yield record profits but rationing. What the market can bear is what we will be made to pay. Remember when big American car got 9 miles to the gallon, or less and we were outraged at gas prices nearing a buck fifty? There are only four major oil companies, so how strong can the competition possibly be. In some states it's actually illegal to sell gas below cost if one were so inclined for the sake of a little hard-nosed competition. Does anyone remember the Stadard Oil anti-trust regulations that had to be inacted many years ago; the pricing and business practices that led to the break up of Standard Oil?

M1EK

Grain of salt, man, grain of salt. So far, every jackass that smugly predicted they'd be kicking the Prius to the curb has failed to bring it.

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