Unsold Cars, Closing Manufacturing Plants, Etc.
We all knew that people were buying fewer cars these days - and Detroit's problems, and bailout, made lots of headlines - but this situation is global. Will it be enough to drive down worldwide oil consumption significantly? Will new, more fuel-efficient cars be on the market by the time people start buying again?Only time will tell how long this slump will last (will depend on macro-economic factors) and what kind of impact it will have on oil consumption (and thus greenhouse gas emission and smog pollution). One of the things that make it complex is that as demand for oil goes down, the price of oil follows suit, encourage people to use more oil, and so on. Where will the equilibrium settle? Will prices stay down long enough for gas guzzlers to be back in fashion, or will the crappy economy keep Hummer-like vehicles off the roads even if gas is cheap?
One potential positive side-effect is this big slowdown in sales is that by the time things pick up again, people - especially in the US - will have better choices of fuel efficient cars (including some European models like the Ford Fiesta and Fiat cars via Chrysler).
UK Car Production
"Production of cars in the UK declined by 47.5% in December, and was down 5.7% for the full year 2008, according to figures from the Society of Motor Manufacturers and Traders (SMMT)."
Exports account for 75% of all UK vehicle production, serving more than 100 markets around the world, according to Paul Everitt, SMMT chief executive.
Japanese Car Production
"The Nikkei reports that Japan’s eight automakers are expected to produce 1.7 million or so vehicles from their domestic factories in the January-March quarter, down more than 40% from a year earlier."
Via Green Car Congress
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