Gearing up for times like these are exactly the reason the Big 3 went through the painful restructuring of the last four years.
Automakers need to be nimble when the demand shifts and it will be shifting as prices at the pump move closer to $4 a gallon.
Right now, the national average for a gallonof gas is $3.64. It’s up 12 cents in the last week and up 27 cents in the last month.
Last month, (when gas was averaging around $3.37) January sales broke down to 51.3% being cars and 48.7% being trucks. This month, we’ll see an even greater shift toward cars. The question is whether the automakers are ready for that migration of buyers toward cars or to models with smaller, more fuel efficient engines.
Are they ready?