It looks like the love affair with 4×4’s and SUVs (sports utility vehicles) is coming to an end as the high oil prices take their toll.
Beloved by many both in the UK and the USA, SUV’s and 4×4’s are falling out of favour as the costs of petrol and diesel soar with the recent rises in oil prices.
General Motors is closing four factories in the USA that make trucks and SUV’s. This is because consumers are no longer looking for such thirsty vehicles when gas costs $4 per gallon.
I saw one petrol station selling diesel for £1.33 per litre this morning, so I don’t think it will be long before some of the UK based car makers such as Landrover start to cut back on making so many off-road and SUV type vehicles too.
This will probably please many environmentalists. Even the boss of the OECD thinks that high oil prices are a good thing as it will reduce demand and therefore assist in the fight against global warming, however one has to think about the many people who will lose their jobs as GM closes the factories.