Expensive gas worries GM purchasing chief

AVANTI R5 · 03-13-2008, 01:01 PM

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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dmross · 03-13-2008, 01:03 PM

jigga · 03-13-2008, 02:26 PM

^^

rallymaniac · 03-13-2008, 02:49 PM

Quote:

Originally Posted by dmross

I was about to post the same thing when I read the title

Loosers

2000wrx · 03-13-2008, 07:14 PM

how in the heck is this funny...

loser??? because the ship products.... WTH?

jetfan2207 · 03-13-2008, 07:29 PM

It doesn't matter how much gas is, there will always be a market for a good pickup truck. For some reason people (around here anyway) are buying Fords like crazy. Anything with commerical plates is a Ford, but I do see some Dodge trucks more and more.

daveyboy · 03-13-2008, 08:35 PM

Quote:

Originally Posted by 2000wrx

how in the heck is this funny...

loser??? because the ship products.... WTH?

Exactly. Everyone ships things--making EVERYTHING more expensive.

Hondaslayer · 03-13-2008, 08:39 PM

$7.2 Billion and it goes up by $6 Million, is that even a %1 increase in operating costs?

russnuck · 03-13-2008, 10:19 PM

$6Million for every +$1 for a barrel of crude... So if it goes up like it has been that could mean alot of money. Wasn't it ~$80 6 months ago and now is ~$110, works out to $180M / year

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03-13-2008, 01:03 PM	#2
dmross Scooby Specialist Member#: 2818 Join Date: Nov 2000 Chapter/Region: MAIC Location: Pittsburgh, PA Vehicle: 2000 2.5RS

03-13-2008, 02:26 PM	#3
jigga Scooby Guru Member#: 9960 Join Date: Sep 2001 Location: in bed... Vehicle: 2002 Impreza WRX WRBlue Perl	^^

03-13-2008, 07:14 PM	#5
2000wrx Scooby Specialist Member#: 66659 Join Date: Jul 2004 Location: geronimo66 at work Vehicle: 2000 L WRX'd	how in the heck is this funny... loser??? because the ship products.... WTH?

03-13-2008, 07:29 PM	#6
jetfan2207 Scooby Specialist Member#: 61950 Join Date: May 2004 Chapter/Region: Tri-State Location: Northern NJ Vehicle: 2008 Outback big blue wagon	It doesn't matter how much gas is, there will always be a market for a good pickup truck. For some reason people (around here anyway) are buying Fords like crazy. Anything with commerical plates is a Ford, but I do see some Dodge trucks more and more.

03-13-2008, 08:39 PM	#8
Hondaslayer Brain Stew Moderator Member#: 4562 Join Date: Feb 2001 Chapter/Region: NWIC Location: Auburn, WA Vehicle: 1998 Forester,lifted 1975 VW Westfalia tin top	$7.2 Billion and it goes up by $6 Million, is that even a %1 increase in operating costs?

03-13-2008, 10:19 PM	#9
russnuck Scooby Newbie Member#: 81152 Join Date: Feb 2005 Chapter/Region: BAIC Location: near Santa Cruz, CA Vehicle: 2008 WRX Sedan Spark Silver Metallic	$6Million for every +$1 for a barrel of crude... So if it goes up like it has been that could mean alot of money. Wasn't it ~$80 6 months ago and now is ~$110, works out to $180M / year