AutoNation CEO: Green Cars Will Not Spur Industry
Special to CNBC.com
AutoNation CEO Mike Jackson said today that despite the government’s push towards fuel-efficient vehicles, the creation of green cars will not spur auto sales.
Watch the video below to see what else Jackson had to say on the auto industry
"Five percent of consumers are committed to green and will make economic decisions that do not get a quick pay back," Jackson said.
"Ninety five percent of people care about green, but unless the numbers work, they are not going to pay for green technology. And when it comes to our industry, that’s fuel efficiency, and there’s a major disconnect today between the government requirement to dramatically increase fuel efficiency for our industry and the price of gasoline and what the consumers are willing to pay for," Jackson said.
With gasoline hovering at $2 per gallon, Jackson said that Americans were beginning to migrate back to larger vehicles, leaving auto inventories brimming with fuel-efficient vehicles produced during the summer.
However he foresees a positive change in the industry thanks to the government's newly implemented Term Asset-Backed Securities Loan Facility or TALF.
"I think you’ll see the big, early adapters of TALF will be automotive companies and I think they will be securitizing billions of automotive loans and that will help credit availability," Jackson said.