The Effects of Higher Gasoline Prices on U.S. Light Vehicle Sales, Prices, and Variable Profit by Segment and Manufacturer Group, 2001 and 2004

McManus, W. 2005. The Effects of Higher Gasoline Prices on U.S. Light Vehicle Sales, Prices, and Variable Profit by Segment and Manufacturer Group, 2001 and 2004.
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This paper examines the effects on the U.S. automotive industry of two trends that have coincided since 2001, a rising real price of gasoline and growth in direct-to-consumer incentives. The rise in the real price of gasoline has been modest in historical terms, and sales of low-mileage sport utility vehicles and pickups have been stable, leading many observers to conclude that consumer demand has not been responsive to the rise in gasoline prices.