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Wednesday, September 07, 2005

Gas Prices: Consumers are worried about Price Gouging; Authorities Are Monitoring




Subdued Labor day spending

Consumers worried about the potential increase of gas prices after Hurricane Katrina ravaged the Gulf Coast oil stations did not want to venture far from their homes. They stayed home or close to their community. Many of them did not want to be seen as callous when many of their fellow men and women were going through hell in other parts of the country. This is not good news for the automotive industry. Coming from a good campaign which sold many 2005 models, they are now grappling with recalls. Especially in the case of Ford that had to recall some of its bestselling models due to engine fires, many observers are saying that the slowdown and recent natural events will hit the company's bottom line.

Even Toyota has also seen the slowdown. Its shares fell 7 cents to close at $83.78 on the NYSE.

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