Gas Prices Cause a Shift in Demand
It seems that the recent rise in gasoline prices has influenced a shift in consumer demand from gasoline-powered cars to hybrids. Toyota came out with their first hybrid model about a decade ago, when gas prices started rising. They predicted that gas prices would continue to rise, and there would be a point where consumers would not be willing to pay for gas. American car companies, such as Ford and General Motors, are now in trouble. Consumers are switching from their gas-guzzling SUV's to the smaller, more fuel-efficient Asian cars. The Toyota Prius, a hybrid, gets 65 miles to the gallon in the city and 51 miles to the gallon on the highway. Toyota claims that the hybrid is also powerful, for those who are worried about driving a car with no power. The hybrids will not only be cheaper in gas, but they will also be better for the environment.
Posted by Ann at 10/25/2005 01:29:00 PM