The Auto Writer

This past week was a particularly active one in the automotive world as several manufacturers announced how they would be responding to higher gas prices, new models were released, and consumers gasped as regular gas jumped the $4 per gallon threshold.

In case you missed some of the stories featured on The Auto Writer and elsewhere, we offer to you some of the key and less known stories of the past week:

• Chrysler has been working diligently to pare excess dealer inventory by closing down or consolidating dealerships. Over the past year, Chrysler shut down or consolidated 196 Chrysler, Dodge, and Jeep dealerships, reducing the number of U.S. outlets to 3488.

• GM was battered recently by a strike involving a key supplier, American Axle. The company makes transmissions for several GM models including its popular Chevrolet Malibu. With the prolonged labor shutdown, GM lost production ability and at least $1.8 billion with it. GM is now considering purchasing American Axle, a company who already relies on GM for 76% of its business.

• Interest in big hybrids including two made by General Motors isn’t what it is cracked up to be. GM’s Yukon Hybrid gets just 20 miles to the gallon, but it is a bit thriftier than its all-gas sibling. Unfortunately, demand for the Yukon and the Chevrolet Tahoe are tepid at best. Are automakers betting on the wrong vehicles?

• Pressure to save on fill ups is hitting home with many consumers opting to purchase fuel efficient compacts as they ditch their SUVs. Not everyone can afford a new car, so finding a good used car that won’t let them down has become a strong option. Used car prices are on the rise too, especially for the thriftiest models.

• Volkswagen is still about a month away from making an announcement, but people in Tennessee are anticipating that their state will be the home for VW’s future US automotive plant. VW was one of the first foreign manufacturers to build cars in the US, but they abandoned their Pennsylvania plant in the 1980s due to lackluster sales. Volkswagen’s newest initiative will likely succeed given the demand for fuel efficient cars, a strong suit of the German automaker.

• No surprise here, but auto tourism is big business in Michigan. This year Ford is marking the 100th anniversary of the Model T and General Motors is also celebrating its centennial. In addition, Autopalooza runs from July 31st through August 31st, an attraction featuring five key events.

That’s it for now…get yourself outside, drop the top, and roll your way to the beach!