As gas prices go up, people try to drive less. How does this affect the car industry? Several factors in the car business have changed in the past number of years. The effect of the rising gas prices has a positive effect on public transportation and the environment but for the car industry, it is a potential problem. Many of the small cars such as Toyota advertise for their high fuel efficiency. As the article explained, many families have decided to stay home with the family instead of driving to a campsite. Toyota perfectly advertises their Prius for this target consumer. https://www.youtube.com/user/ToyotaUSA?feature=CAQQwRs%3D. Although the smaller cars are able to adapt towards the new change in consumer needs, larger cars, such as Ford, are not as fuel efficient and with the gas prices “being near $4 a gallon”, as stated in the article, need to reconsider their target towards a non-metropolitan market which demands the large durable trucks. Overall the gas prices do have an effect, and each company must readjust.
