August 24, 2004
Hummer Sales Shrink
Sales are expected to fall 22% this year due to rising oil prices. This amounts to a startling turnaround for the Hummer which entered the US market full force two years ago when GM bought the rights to sell the vehicle in the States. At the time, dealers were charging prices substantially above sticker. This is just one small example of how the economy reacts to a supply shock. Noteably, in this case, the higher oil prices are not spurring inflation, but causing price reductions in other sectors of the economy.
Posted by at 09:54 PM
·
TrackBack (32)