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Originally Posted by Miko M
I see what you are saying but now average American buy cars that they can barely effort.
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Right, that's what I was getting at with the buyer-behavior commentary.
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That being said when recession hits there is a big mess. People need to switch to lower cost vehicle and low gas sucking monsters.
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If they need to switch to a lower cost vehicle, they'll buy a lower cost SUV. The cheapest vehicles on the market are still sedans, but only by a few thousand dollars (a few dollars per month). And most people aren't driving the cheapest SUVs on the market, so there will be cheaper ones available to them if necessary.
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Now with gas prices: even being the same price they get forced to buy smaller cars because average Americans drive 30-45min. to work. To be able to save money.
Happened before and I know it will happen again.
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A recession could happen again, but as far as the automotive sector is concerned there are better tools in the shed this time to work through it.