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Old 03-13-2008, 01:01 PM   #1
AVANTI R5
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Default Expensive gas worries GM purchasing chief

Quote:
GRAND RAPIDS, Mich. -- Rising crude oil prices are hitting hard at General Motors and other North American automakers, says GM purchasing chief Bo Andersson.
Andersson was the keynote speaker today at the 10th Annual Automotive Suppliers Symposium here at Grand Valley State University.


High oil prices also add to GM's costs for shipping and delivering cars and parts, Andersson said. For every $1 increase in the price of a barrel of crude oil, GM spends an additional $6 million per year for logistics, he said.


GM's total logistics tab is $7.2 billion globally per year.
Crude oil has been skyrocketing in recent months. Today it hit $111 a barrel on the New York Mercantile Exchange.
Andersson said a gasoline price of $3.30 per gallon seems to be the current tipping point that dampens U.S. vehicle sales. He said that when gasoline reaches that price, consumers reassess big-ticket purchases.

That harms not only pickup and SUV sales but small cars as well, Andersson said.


The nation needs leadership in government and all economic sectors to deal with the rising costs of energy, Andersson said. He said GM and other automakers are doing their part by offering alternative-fuel vehicles and seeking out better fuel
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