Slightly lower fuel prices could give GM a big break

Can Lower Oil Prices Help General Motors Rebound In Fourth Quarter Sales? Many automaker analysts believe it does, and most GM auto dealers certainly expect it, too. Lower oil prices mean lower gas and diesel prices, and for GM that means more sales of trucks and SUVs, which are its top-grossing sales models. In fact, the drop in gas prices and slightly lower fuel prices could give GM a huge opportunity, one that shareholders would gladly take at this time.

Sales are apparently rumored to have risen slightly since the recent drop in gasoline prices in late September 2006, but no one is sure how long that will last. Dealers say they are selling more SUV and truck models than in August and early September, and if this continues, this could round out a good year in sales for US automakers.

Some people still want smaller cars and hybrids, but there aren’t enough available yet and that should continue well into 2007. Even Toyota and Honda can’t produce enough of the best-selling hybrids. There’s still a huge 2006 inventory to get rid of some of the big car models from US automakers, but these lower prices are helping and the longer they stay low, the better for the big three. Consider all of this in 2006.