CNN Wins "No Duh!" Award - "US Auto Industry Faces Growing Headwing From High Oil Prices"

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EDIT

But the concern goes well beyond how the price of fuel affects what kind of car a consumer buys. More worrisome for car manufacturers is that the high crude oil prices will further pressure discretionary spending and lower consumer confidence, putting a deeper dent in auto sales. High energy prices can drive prices up for many consumer goods, forcing people to further cut back on bigger purchases and ultimately slowing economic growth.

Auto sales have been below trend since the summer and that's not expected to change soon, said Aaron Bragman, an auto analyst at Global Insight Inc. "We're not looking for anything to be rebounding until the middle of next year," he said. "And that's later than we originally thought. Things just don't seem to be getting better economically or in terms of the oil prices."

Investors could get clues on the impact of high fuel prices on the auto industry when auto makers report October sales results on Thursday. Perhaps the surest sign of the sour economic backdrop for auto makers is that Toyota Motor Corp. (TM), which has been a juggernaut in the U.S., reported year- over-year sales declines in July, August and September.

If crude oil prices stay at their recent levels of around $90 a barrel, the worry is that it will compound and extend below-trend economic growth.

EDIT

http://money.cnn.com/news/newsfeeds/articles/djf500/200710291700DOWJONESDJONLINE000647_FORTUNE5.htm

[XemaSab]

1. WTF is a headwing?

Reminds me of a reproduction of a clothing catalog from the late 1800's I looked at today.

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2. Yeah, yeah, yeah, "headwind"!

Sheesh, nearsighted, slightly tipsy, post late at night, and what do I get?

(Huffy, dowager-esque exhalation)!

[phantom power]

3. I can't wait for those Captains Of Industry to start angling for a bail-out.

And you know they will. Because, anything but make fuel efficient cars, dammit.