As in the summer of 2008, when prices broke $4 a gallon, big jumps at the gas pump may give car buyers reason to pause and cause vehicle sales to stall. At least the carmakers now have more fuel-efficient fleets, except for Chrysler, which is still catching up.
Back in 2009, General Motors applied to the Department of Energy for $14.4 billion in loans to help it manufacture more fuel-efficient vehicles. Today, with the automaker making big strides in turning around its business, GM said it no longer needs or wants the money.
With U.S. automotive dominance waning, a new moniker has emerged: the "Detroit Three." Still, don't count out Ford, GM or Chrysler. Their post-recession future looks strong, thanks to some agonizing restructuring. Now, they can be profitable selling fewer cars.
Year-over-year gains are again likely when automakers report November U.S. sales figures Wednesday. But a drop from this October's level is on tap. Detroit probably fared better than its foreign counterparts as sales rebounded further from last year's anemic levels.
Ford, General Motors and Chrysler have been granted a combined $2.1 billion in tax breaks to invest in 17 new projects in Michigan, the state's economic development agency said Tuesday.
Ford and General Motors reported higher sales in January, with Ford fleet sales surging 154%. Detroit's gains came as consumers avoided the showrooms of the largest Japanese competitor, Toyota, which is mired in massive recall involving millions of vehicles.
