Gas Prices Won't Stop Consumers from Buying Autos, Just the 'Type' They Buy (F) (GM)
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Will higher fuel prices hamper the still-recovering auto industry? According to one research firm, not likely.
At least, not right now, anyway. According to LMC Automotive, U.S. auto sales are on pace for 14.1 million units for 2012, with sales in March expected to be 1.4 million units. The March number is about 6 percent better than the same period last year, while the Street is looking for a number closer to 14.0 million for 2012 sales.
One LMC analyst said the real test would be in the spring and summer, when fuel prices shift for summer driving and as European policymakers continue to get a hold on sovereign debt issues.
Gasoline prices have shown a strong rise since last year, up 9.3 percent to an average of $3.88 per gallon, according to AAA's Fuel Gauge Report. This is leading to consumers not necessarily stop buying autos, but to make different choices in what they buy.
For example, several new compact cars have been unveiled including the Chevy Cruze, Fiat 500, Ford Focus (new model), Hyundai Elantra and Veloster, and Honda Civic. The additions move the total number of small car choices for consumers from 30 back in 2007 to 41 currently, according to data from the Detroit Free Press.
In March, about 23 percent of autos sold in the U.S. are expected to be small vehicles. LMC thinks total small car sales for 2012 could hit 20 percent, the largest share on record.
General Motors (NYSE: GM) shares are in positive territory while Ford (NYSE: F), Toyota (NYSE: TM) and Honda (NYSE: HMC) are all lower.
At least, not right now, anyway. According to LMC Automotive, U.S. auto sales are on pace for 14.1 million units for 2012, with sales in March expected to be 1.4 million units. The March number is about 6 percent better than the same period last year, while the Street is looking for a number closer to 14.0 million for 2012 sales.
One LMC analyst said the real test would be in the spring and summer, when fuel prices shift for summer driving and as European policymakers continue to get a hold on sovereign debt issues.
Gasoline prices have shown a strong rise since last year, up 9.3 percent to an average of $3.88 per gallon, according to AAA's Fuel Gauge Report. This is leading to consumers not necessarily stop buying autos, but to make different choices in what they buy.
For example, several new compact cars have been unveiled including the Chevy Cruze, Fiat 500, Ford Focus (new model), Hyundai Elantra and Veloster, and Honda Civic. The additions move the total number of small car choices for consumers from 30 back in 2007 to 41 currently, according to data from the Detroit Free Press.
In March, about 23 percent of autos sold in the U.S. are expected to be small vehicles. LMC thinks total small car sales for 2012 could hit 20 percent, the largest share on record.
General Motors (NYSE: GM) shares are in positive territory while Ford (NYSE: F), Toyota (NYSE: TM) and Honda (NYSE: HMC) are all lower.
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