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Will Gas Prices Come Back Down?

GM CEO thinks so.

extended warrantyWe have been talking about the price of gas a lot lately.  It seems that everywhere you turn you are reminded of $3.00 a gallon gas and the threat that it might go higher.  There are a lot of people afraid of just that happening.  However, Rick Wagoner is not among them.  

 Wagoner, chief executive of General Motors, is optimistic that gas prices will come back down in the future.  But how near is that future?  I’m not sure but hopefully soon.  

"They are too high right now and they will come back down," Wagoner said of oil prices during a conference at the company’s headquarters in Detroit that was broadcast over the Internet. He said consumer behavior isn’t expected to be negatively impacted by current gasoline prices, which are averaging about $2.92 a gallon according to the American Automobile Association.


This kind of thinking does seem to go against the latest trends.  Some consumers do seem to be moving toward smaller more efficient cars and automakers like Ford and Toyota are rushing to accommodate them with lots of hybrids.  GM is also working on its own share of hybrid vehicles but are not as focused on it as the other two I just mentioned.  They are still committed to bigger vehicles as well as the small.

Wagoner said GM aims to keep developing engines for its vehicles with improved fuel economy in mind. He said buyers tend to gravitate to bigger, more-powerful vehicles that typically consume relatively high levels of fuel. GM has touted its new full-size SUVs as being capable of achieving 20 miles per gallon, and the auto maker has a number of vehicles capable of achieving better than 30 miles per gallon.


The truth is that no one can predict exactly what will happen.  Each manufacturer will have to make its own adjustments as they go.  However, for the sake of our wallets I hope Mr. Wagoner is right.

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Posted on Friday, May 5th, 2006 at 5:33 am In Auto Warranty  


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