WJR Report: Rita and Katrina's Blow - The Car Connection
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WJR Report: Rita and Katrina's Blow
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The last-minute turn by Hurricane Rita was good news for motorists, considering what might have happened if it further disrupted Gulf oil production. General Motors also dodged the bullet. The automaker has just unveiled its new line of full-size sport-utility vehicles. And it's hard to imagine anything more vulnerable to soaring fuel prices - which some experts worried might have topped $4 a gallon. That doesn't mean GM is getting off easy. When the automaker began work on the new SUVs, it was betting the large ute segment would grow by a third, to a million annually. At best, sales are likely to stay stagnant, meaning even tougher competition - and more vulnerability to oil prices. Fuel economy will rise an average mile a gallon on models like the 2007 Chevy Tahoe. And there's a new hybrid powertrain under development, though surprisingly, no diesel. These new trucks will be critical for GM, but predicting the market has proven as tough as tracking a hurricane.

 

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