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Americans: So short-sighted! January 4, 2015

Posted by hslu in Economics, Global Affair, Oil.
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American’s corporations have on average a vision of about 90 days.

That’s one quarter, exactly.

Americans are not any better:
Their car buying habit is dictated by nothing more than the cycle of oil price.

Here is a prove

Through the first 11 months of 2014, according to Autodata, sales of pickup trucks were up 5.4% and sales of SUVs of all sizes were up 11.7%.

But, sales of the hybrid Prius were down 15.8% over the same period.

The reason is the recent drop of gasoline prices across the U.S.

This mentality is no different from GM’s push for luxury gas guzzlers, Hummers, right about the time when crude oil price skyrocketed at the turn of the century. Hummer’s sales tanked and the company bankrupted in 2010 because GM couldn’t find a buyer.

Hmmm, as Americans ditch the hybrids and go for big cars, American car companies will retool their assembly lines to make more SUVs and pickup trucks.

In the mean time, how long will Saudis keep its oil production up this time?

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