As long as 80% have jobs, and America heads more toward socialism (spending money they haven't got) they can continue to ramp up the upper ends of car making segments. In reality, true American unemployment is now within 4% of Depression-era numbers. But you don't see hobos riding the rails, and people don't knock on your door looking for food. This keeps the auto sector going. Hence, despite a tiny increase in econo-boxes, and the gas price increases, sales of SUVs and trucks and very powerful cars will continue. If gas prices really did matter, we'd all be driving 1L cars that got 50mpg and would reserve the powerful car use for special occassions. But this is not the case. Gas isn't that costly, for various reasons. The basic goods market sector has been cost-cut to the bone by outfits like Walmart who buy 90% of their goods from China and now dominate U.S. basic goods sales. This has allowed people to direct money more toward automobile purchases and upkeep. Electronics as well. This is important for the automakers as the econo-box divisions make the least profit per car.
- posted
12 years ago