Even the car companies get hit hard when the local gas station raises it's prices. According to GM purchasing chief Bo Anderssson, every time gas goes up $1, GM has to shell out $6 million more every year.
While that's not a huge amount of their operating budget, you can't tell me that type of fuel bill doesn't play havoc with their budget.
I assume a lot of that bill comes from delivery costs. No wonder GM is more interested in cutting costs for larger vehicles! <- Note: this is just a little joke.
Andersson was also quoted as saying $3.30 a gallon seems to be the tipping point for car sales. Once the fuel bill goes up over that number, car sales and other big purchases get 'reassessed.' He included small cars, not just large ones in that statement.
Source: Expensive gas worries GM purchasing chief - Automotive News
Monday, March 17, 2008
Even Car Companies Hate Paying That Fuel Bill
Hybrid Research and Pricing at Edmunds.com
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