In September, auto sales continued their grim downward trend. Overall, the car market shrank by 27 percent relative to last year. Hybrids fared better, falling just 9 percent from September 2007 levels, but the message was clear—tight credit, reluctant consumers, and an economy plunging into recession have begun to affect all types of vehicles, hybrids included. Our earlier question if hybrids are “recession proof” is now answered.
After more than three years of rumors, Volkswagen has acknowledged its consideration to bring a subcompact car to the US market in order to compete with other small car offerings, such as the Toyota Yaris and Honda Fit. Earlier this week, Stefan Jacoby, president of Volkswagen Group America told The Detroit News, “We could imagine having a car like the Polo in the United States."
As investors grappled with the the potential ramifications of a looming global economic downturn today, oil prices fell to levels not seen since late 2007. The dive was precipitated by a growing sense that in the coming months, businesses and individuals around the world will drastically cut oil use, and that a spike in demand from emerging economies is about to plateau.
