Don't Make a Panicked Decision About Gas Guzzlers

Americans are in panic mode. They want a quick fix to high gas prices. That usually means downsizing their ride. And when they decide to make a change they seem to want to go from one extreme to the other -- Hummer to Smart car for example...

In Edmunds' companion web site AutoObserver, Dale Buss takes an in depth look at what's happening among car buyers in his excellent article "Desperate to Downsize."

One quote in particular jumped out at me.

"Rather than stretching or gradually making a change, consumers are making a snap change here - they're shifting all at once," said Lincoln Merrihew, senior vice president of TNS Automotive, an industry market-research firm in New York.

"It's like a school of fish who change all at once. And the problem for the car industry is that it isn't designed that way. It's hard for [automakers] to respond to that."

I think that Americans are upset now because they can't control gas prices and they have suddenly realized how dependent they are on petroleum products. When I talk to people I try to tell them that there are still things they can do to control what seems to be an uncontrollable situation. But to do that they will have to change. And perhaps it's change, more than anything else that they fear.

Still, understanding what is happening and why will bring a modicum of control to this chaotic situation. So take a moment to read Dale Buss's excellent article.  

Posted by

Philip Reed June 18, 2008, 8:12 AM

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