Several recent articles outline the current turmoil in the new car market. All are a direct result of the surge in energy prices. An earlier post of mine lists the energy crisis as a life changing event and the automotive market can serve as exhibit #1. Although the articles vary somewhat in their numbers, I think I can safely say that during the month of May, for the first time in history, the domestic industry sold less that half the cars in this country. Sales of trucks, SUV's and large cars plummeted while small cars nearly doubled their share of the market. The Honda Civic was the best selling vehicle in May, replacing the leader of 31 years, the Ford F150. Meanwhile, GM announced the closing of 4 truck plants and ponders the sale or closing of the Hummer Brand. CEO Rick Wagoner says that gas prices aren't coming down. Alan Mulally, CEO of Ford, says that the energy crisis will cause Ford to not return to profitability in 2009 as originally predicted. If that doesn't change the lives of the affected people then I don't know what will.

The greater disease is our country's high use of energy. The current automotive market is simply a symptom of this disease. Our politicians can only point the finger of blame at the oil executives while failing to enact more than a token energy policy.

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