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...bewildering questions in the auto industry is how high gas prices would have to climb before Americans dump their gas guzzlers for more fuel-efficient cars. The issue comes to a head every time prices spike at the pump, whether because of turmoil in the Middle East, a lack of refinery capacity or old-fashioned opportunism in anticipation of a surge in demand. That's the scene now, with oil futures hitting record levels and gas prices averaging nearly $2 per gal. nationwide just as the summer driving season kicks off. If you just spent $75 to fill up your...

Author: /time Magazine | Title: Make Vrooom For The Hybrids | 5/24/2004 | See Source »

...Federal Government is offering a $1,500 tax deduction this year.) It's unclear whether consumers will want to spend the extra bucks if the fuel savings turn out to be minimal. But there's reason to believe that gas prices may not fall after the traditional summer spike, and oil-industry experts say we could be in for permanently higher prices if a surge in demand, notably from India's and China's hot economies, outstrips supplies...

Author: /time Magazine | Title: Make Vrooom For The Hybrids | 5/24/2004 | See Source »

...seen in quite a while," Girsky says. GM plans to temporarily halt assembly lines at an SUV plant near Oklahoma City, Okla., this week--one of the few times that rising SUV inventories have triggered such a closure. Nonetheless, GM officials insist the company is equipped to handle a spike in demand for more fuel-efficient vehicles. GM aims to build its hybrids on the same assembly lines as its standard light trucks, giving it more flexibility to change the production mix as buying patterns shift...

Author: /time Magazine | Title: Make Vrooom For The Hybrids | 5/24/2004 | See Source »

...National Security Adviser Condoleezza Rice said in an interview this week that "things could get really bad in the coming weeks." The anticipation of a spike in violence before June 30 is conventional wisdom among Coalition officials. But whether anything that happens on that day serves to tamp down violence in its wake remains to be seen...

Author: /time Magazine | Title: Iraq's Insurgents Look to the Future | 5/19/2004 | See Source »

...editor of the Hong Kong-based China Economic Quarterly. "This is still a state-directed economy, and the government's latest steps have been a wake-up call." The alarm bells are getting louder. Consumer prices on the mainland jumped 3.8% last month, the highest year-on-year monthly spike in seven years. That is expected to increase pressure on China's central bank to raise interest rates for the first time since...

Author: /time Magazine | Title: Time to Cool Down | 5/17/2004 | See Source »

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