Automakers having trouble going small

[0:00] ..." This is Anthony silver in the WBZ newsroom. With soaring gas prices major carmakers simply can't keep up with the explosive demand for smaller higher mileage models. I spoke with a senior automotive analyst"...

[0:37] ..." and June consumers finally saw the reality of four dollar a gallon gas prices. That was the tipping point that caused consumer behaviors change. I've been involved in the auto industry for over thirty years and"...

[1:34] ..." General Motors yesterday announced even -- their sales were down 18%. They admitted that they could've sold 40000 more smaller cars but they just"...

[1:57] ..." it take for not just the domestics but the foreign carmakers -- Toyota number one here. To bring in to market the cars that people want right now."...

[2:11] ..." so it's it's not an easy answer in some cases let's take Honda is an example -- very flexible. They can do it and a couple of bumps some of the older domestic plants which"...

[2:54] ..." the domestic carmakers why were they so guilty in this timing. Seen gas prices going up so rapidly and the market changing before."...

[3:24] ..." You know a lot of people's it -- to look at Toyota Toyota's profitable Toyota seems to see things maybe that Colorado companies don't see that there really at the top of the industry right now you know for the model year 8. Toyota introduced on all new bigger than ever full size pickup. To all new full size SUVs -- an all new plant in Texas to build that new full size pickup. They didn't see it anymore clearly than General Motors that. GM has the same kind of small cars for example that that Toyota does. The problem is the American consumer went thinking small economical car. Generally doesn't think GM Ford or Chrysler they tend to think the Asian brands and most particularly they tend to think Honda and Toyota. That's something that that hopefully can be overcome because our car for car basis of size for size basis. That GM and"...

[4:30] ..." The only carmaker that -- and increased last month was Honda one point 1%. Was that just lucky timing."...

[4:36] ..." Now Honda does have a smaller mix of vehicles than most of the major manufacturers. So Honda was was well positioned and and also. It is in the mindset of the consumer as we just said he thinks small economical you'd think Honda and they had. A reasonable supply of civics and accords on hand that they were able to really. Cash in on this"...

[0:00]" This is Anthony silver in the WBZ newsroom. With soaring gas prices major carmakers simply can't keep up with the explosive demand for smaller higher mileage models. I spoke with a senior automotive analyst -- global insight in Lexington. John -- Con-way it's I asked him about car dealers. That simply don't have enough Compaq's available right now and why."

[0:23]" this shortage of the cars that people actually do want to buy and most particularly compact and sub compacts sedans. What happened where in the midst of of an unprecedented shift in consumer demand. In May and June consumers finally saw the reality of four dollar a gallon gas prices. That was the tipping point that caused consumer behaviors change. I've been involved in the auto industry for over thirty years and I can tell you I've never seen. A rapid and total consumer shift in demand like this one this is truly unprecedented. So what happened to be in May which was the first month when went consumers really made the shift to small vehicles. They bought out everything on hand so that was a normal day's supply at the beginning of may. Plus that was production in May. All of that got sold in May most of the key manufactures entered June with. Alarmingly low stockpiles of compact and sub compact cars and that actually hurt the sales of those vehicles in jail there were lots of people out there who wanted to buy them. But the current simply weren't available."

[1:34]" General Motors yesterday announced even -- their sales were down 18%. They admitted that they could've sold 40000 more smaller cars but they just don't have the."

[1:56]" Tell me about that how long will it take for not just the domestics but the foreign carmakers -- Toyota number one here. To bring in to market the cars that people want right now."

[2:07]" It depends on how flexible the plant is that's being converted so it's it's not an easy answer in some cases let's take Honda is an example -- very flexible. They can do it and a couple of bumps some of the older domestic plants which are not very flexible it could take a year and a half."

[2:45]" John let's drop -- you know we're talking about these vehicles coming to market in the next eighteen months to years or more why. Was the -- the domestic carmakers why were they so guilty in this timing. Seen gas prices going up so rapidly and the market changing before."

[3:04]" Well unfortunately this is an industry that's still takes five years to go from concept to customer. So if you dial the clock back five years. We were selling all the full size SUVs and pickups that any company could make. Nobody saw this rapid shift in consumer demand coming. You know a lot of people's it -- to look at Toyota Toyota's profitable Toyota seems to see things maybe that Colorado companies don't see that there really at the top of the industry right now you know for the model year 8. Toyota introduced on all new bigger than ever full size pickup. To all new full size SUVs -- an all new plant in Texas to build that new full size pickup. They didn't see it anymore clearly than General Motors that. GM has the same kind of small cars for example that that Toyota does. The problem is the American consumer went thinking small economical car. Generally doesn't think GM Ford or Chrysler they tend to think the Asian brands and most particularly they tend to think Honda and Toyota. That's something that that hopefully can be overcome because our car for car basis of size for size basis. That GM and Ford products match the fuel economy of the imports that this is something that the consumers not aware of and in some cases really they don't want to believe."

[4:30]" The only carmaker that -- and increased last month was Honda one point 1%. Was that just lucky timing."

[4:36]" Now Honda does have a smaller mix of vehicles than most of the major manufacturers. So Honda was was well positioned and and also. It is in the mindset of the consumer as we just said he thinks small economical you'd think Honda and they had. A reasonable supply of civics and accords on hand that they were able to really. Cash in on this I mean they only went up one point 1% but it was awfully nice to see somebody -- an increase."