22 May 2008

Peak Oil Gets Personal

As recently as 2004, trucks and SUVs accounted for 70 percent of Ford's sales volume . . . . Retail sales of trucks and SUVs accounted for just over 30 percent of sales in April. . . Ford's smallest offering, the Focus sedan, saw sales jump 29 percent in the first four months of this year.

From here.

All of the big three automakers have cut truck and SUV production as a result of recent sales trends, and reduced their overall sales forcasts. Small cars are doing well in the used car market. Another parent at my children's school often drives to school in a neighborhood electric vehicle (picture above), which looks like a Smart car but smaller.

If gasoline prices continue to rise, truck and SUV sales will presumably fall even further. The lemonaide side of the equation is that this shift will produce a reducing in U.S. oil consumption as a result of increased fuel efficiency for another decade.

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