What will it take for the US consumer to stop buying SUVs and purchase efficient vehicles instead? It looks like $4 a gallon is the threshold.
Edmunds.com, one of the main websites people use to price cars, conducted a study that finds: if gas prices hit US$4 a gallon, consumer interest in hybrids would jump by a factor of five.
At that price, purchases of mid and large-sized SUVs would drop by 35% and large trucks by 26%. Luxury cars and SUVs, which are among the least efficient vehicles - would still only decline by 15%.
A Civil Society Institute think tank study found that over 50% of Americans say they would begin to drive less if gas prices hit $4 a gallon.
The US DOE expects gas prices to reach a record $3.50 this spring.
