Ford (F) Chairman Says Volatility Causes Paralyzed Customers (GM)
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The auto industry will seemingly soon have to deal with the dreaded $4-per-gallon fears that gripped American consumers three years ago, as political turmoil in the Middle East continues to drive up the price of oil.
Hopefully, the U.S. automakers are better prepared this time to combat the shifts of the consumer mind. In 2008, large SUVs and gas-guzzling trucks were left on lots, while car buyers turned to subcompacts and other more fuel efficient options.
"Volatility paralyzes customers," says Ford Motor Co. (NYSE: F) Chairman Bill Ford. He added that the customer can be left considering, "Am I making a decision today that I am going to regret six months from now?"
This is a problem for an industry that is not built to combat the whimsical changes in consumer sentiment, given that companies need years to overhaul model lines. By the time more fuel-efficient options are in abundance, there may be another shift.
"Matching our portfolio to the volatility in oil prices has always been a difficult proposition," says Greg Martin, General Motors Co. (NYSE: GM) director of policy and Washington communications. "We are in a much stronger position than we were two or three years ago."
According to a report on Wednesday from The Wall Street Journal, Truecar saw a 31 percent increase in the number of online searches and page hits for subcompacts an small cars, while interest in larges and medium-sized SUVs fell 5 percent.
Hopefully, the U.S. automakers are better prepared this time to combat the shifts of the consumer mind. In 2008, large SUVs and gas-guzzling trucks were left on lots, while car buyers turned to subcompacts and other more fuel efficient options.
"Volatility paralyzes customers," says Ford Motor Co. (NYSE: F) Chairman Bill Ford. He added that the customer can be left considering, "Am I making a decision today that I am going to regret six months from now?"
This is a problem for an industry that is not built to combat the whimsical changes in consumer sentiment, given that companies need years to overhaul model lines. By the time more fuel-efficient options are in abundance, there may be another shift.
"Matching our portfolio to the volatility in oil prices has always been a difficult proposition," says Greg Martin, General Motors Co. (NYSE: GM) director of policy and Washington communications. "We are in a much stronger position than we were two or three years ago."
According to a report on Wednesday from The Wall Street Journal, Truecar saw a 31 percent increase in the number of online searches and page hits for subcompacts an small cars, while interest in larges and medium-sized SUVs fell 5 percent.
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