BMW and Mercedes downplay high gas prices(10/20/2005)
The world^s two biggest premium car makers played down on Tuesday prospects that high U.S. gasoline prices would dent consumer demand for high-end or heavy vehicles. "Prices have gone up in the U.S. but for us at least we have not seen a change in buyer behavior," BMW Chief Executive Helmut Panke told an industry conference ahead of the Tokyo motor show. He said an extra $500 or so in fuel costs may prompt a tougher choice for buyers of cars that offer basic transportation, but would not put off those who can afford a premium car. "The current high energy prices -- and we should be prepared that they stay that way for, say, the next three, four years -- will not basically impact the premium segment as much as they will the basic mass market," he said. Dieter Zetsche, the head of Daimler^s Mercedes Car Group premium division and former head of U.S. arm Chrysler, said media prophesies that the U.S. market for light trucks and sport utility vehicles (SUV) would collapse had not come to pass.
Fuel-Conscious Buyers Cause SUV Sales to Plummet in September(10/4/2005)
Sales of sport-utility vehicles plunged dramatically last month as fuel prices raced past $3 per gallon in the wake of Hurricanes Katrina and Rita. The carnage was fairly evenly distributed between domestic and import brands, although full-size SUVs from Detroit automakers were particularly hard-hit. According to Autodata Corp., sales of the Chevrolet Suburban, Chevrolet Tahoe and Ford Expedition dropped more than 50 percent, while the GMC Yukon and Hummer H2 were off 46 percent and 33 percent, respectively. The drastic decline in SUV demand pushed GM^s overall September sales down 24 percent, while Ford^s total vehicle sales dropped nearly 20 percent. But the domestics shared some of their pain.
Feds Urge Cell Phone Ban for Teen Drivers(9/24/2005)
Banning teenagers from using cell phones and other wireless devices while behind the wheel should be a national automotive safety priority, according to U.S. transportation safety officials. The National Transportation Safety Board put the proposed ban on its "most wanted" list of safety improvements for the coming year, Reuters reported on Wednesday. "Learning to drive and being distracted is a recipe for disaster," Mark Rosenker, the board^s acting chairman, said at a hearing in the U.S. capital. Highway crashes are the leading cause of death among 15- to 20-year-olds. From 1995 to 2004, about 64,000 young people were killed in traffic accidents. A survey released earlier this year found that cell phone usage among drivers between 16 and 24 increased to 8 percent in 2004, from 5 percent in 2002 and 3 percent in 2000.