"Why Nearly Empty Auto Lots Make This Pump-Price Shock Different"

"Carmakers can keep charging top dollar and have EVs to offer as gas goes back above $4 a gallon."

"Gasoline soaring above $4 a gallon this month has inspired comparisons to 2008, when pump prices sapped demand for fuel-guzzling SUVs and helped push Detroit’s automotive behemoths into bankruptcy.

While Americans still love their spacious sport utility vehicles, and pump prices are only moderately higher than their peak in 2008, the similarities mostly end there. Fourteen years ago, demand for trucks and SUVs cratered as consumers sought more fuel-efficient sedans, or stopped buying altogether. The financial system was collapsing, savings were going up in flames and automakers were producing way more cars than consumers wanted."

Gabrielle Coppola reports for Bloomberg Green March 11, 2022.

Source: Bloomberg Green, 03/14/2022