Will Summer Gasoline Prices Help Passat Intro?

How many miles on your TDI

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dieseldorf

Top Post Dawg
Joined
Oct 11, 2000
Location
MA
TDI
ex- 1996 wagon, ex-2000 Jetta
Will Skyrocketing Oil Prices Help Imminent Passat TDi Intro?





Could this be a advantageous for VW as the summer driving season approaches and gasoline is heading straight for $2.50/gallon?

Will this combination of events work to VWoA’s advantage or will it be another missed opportunity - - for VWoA and Americans?


Near -term concern:

[ QUOTE ]


Yesterday's price jump of nearly 2 percent came after the Energy Information Administration reported a further decline of 800,000 barrels in U.S. gasoline inventories. The country is behind schedule in its effort to build gasoline stocks before the summer driving season, when demand peaks.


Oil prices also rose in the last week amid heightened concerns about terrorism in Spain, Iraq, Pakistan, Saudi Arabia and other hot spots around the world. Sabotage to Iraq's northern oil pipelines and other problems have prevented that country from producing the more than 2 million barrels a day many analysts had expected by now.

[/ QUOTE ]

Long-range concern:


[ QUOTE ]
The steady climb of oil prices in recent weeks reflects a convergence of growing demand from the world's three largest oil consumers-- the United States, China and Japan -- even as supplies are set to shrink April 1 because of a cut in production by the Organization of the Petroleum Exporting Countries.


World demand grew by 1.4 million barrels a day last year and is forecast to grow by an additional 1.5 million barrels a day this year, primarily because of record consumption of gasoline in the United States and China, where auto sales and industrial production are expanding rapidly.


Joseph P. Quinlan, chief market strategist with Banc of America Capital Management, said he expects dramatic growth of consumption in China -- potentially the world's biggest car market -- to drive oil prices for years to come.


Auto sales in China soared by roughly 70 percent last year, he said, contributing to a 46 percent boom in oil imports. The government in Beijing expects double-digit growth in auto sales to continue as incomes grow, China's middle class expands, and cars made there become cheaper and more numerous.


Despite the strong pickup in demand, OPEC has not backed off its Feb. 10 decision to cut production by 4 percent, or 2.5 million barrels a day. The move comes partly because OPEC fears demand will wane as it usually does during the spring and partly because of the dollar's 15 percent fall against other currencies in the last two years, which has cut the value of oil sales denominated in dollars.




[/ QUOTE ]





link to story
 

mrGutWrench

Top Post Dawg
Joined
Aug 29, 2002
Location
Carrboro, NC
TDI
'03 Jetta Wagon, 5-speed, 563K Miles (July '23)
[ QUOTE ]
I haven't filled up in 3 weeks, are prices going up? /images/graemlins/tongue.gif

[/ QUOTE ]

__. Actually, here in E. North Carolina, prices have fallen by about 3 cents in the past two weeks (from high of $1.59 - 1.56).
-
 

dieseldorf

Top Post Dawg
Joined
Oct 11, 2000
Location
MA
TDI
ex- 1996 wagon, ex-2000 Jetta
Diesel prices have been fairly stable. It's gasoline that's really on the move. Super unleaded is close to $2 just about everywhere. Diesel is all over the place. $1.80 would be typical in this area.
 

mackwood

Veteran Member
Joined
Oct 13, 2003
Location
california
TDI
2003 jetta grey
California diesel is around a 1.97$.. dohhhhh. But i guess it really doesn't matter here since we won't see the passat.. /images/graemlins/frown.gif
 

AndyBees

Top Post Dawg
Joined
May 27, 2003
Location
Southeast Kentucky
TDI
Silver 2003 Jetta TDI, Silver 2000 Jetta TDI (sold), '84 Vanagon with '02 ALH engine
I just completed two road trips in as many weeks. I saw gas prices (regular) from $1.459 to $1.799 from Bowling Green, Kentucky to Washington, D.C. I also saw Diesel prices from $1.399 to $1.799 with $1.499 being the most prevalent. Also, I have noticed just today, that some stations have raised their prices while others have lowered theirs ...... are they ***king with us? Sure they are! /images/graemlins/grin.gif

Recently, I saw one of those "don't buy fuel schemes." This one wants everyone to quit buying from the two bigest oil firms (as they said, Exxon and Mobil) so competition will pull the prices down! I don't buy at these stations anyway .... so, I cannot help there!

Back to the subject: I don't think America will ever get into diesels like Europe! My two cents worth! /images/graemlins/grin.gif
 

TornadoRed

Top Post Dawg
Joined
Aug 3, 2003
Location
West Des Moines (formerly St Paul)
TDI
2003 Jetta TDI wagon, silver; 2003 Jetta TDI wagon, indigo blue; 2003 Golf GL 5-spd, red (PARTED); 2003 Golf GLS 5-spd, indigo blue (SOLD); 2003 Jetta TDI wagon, Candy White (SOLD)
[ QUOTE ]
I haven't filled up in 3 weeks, are prices going up? /images/graemlins/tongue.gif

[/ QUOTE ]
Diesel is definitely going down. Paid $1.989 on March 9th, $1.979 on March 11th. Then $1.799 on March 16th and $1.779 tonight, March 18th. Gasoline might be down a penny or two, but diesel is dropping like a stone.
 

oilhammer

Certified Volkswagen Nut & Vendor
Joined
Dec 11, 2001
Location
outside St Louis, MO
TDI
There are just too many to list....
$1.49 here in Missouri for BP Premier /images/graemlins/laugh.gif

Regular BP gas is $1.79...man I am loving this!
 

FuelBurner

Veteran Member
Joined
May 10, 2003
Location
De Soto, KS
TDI
'03 Jetta
I paid $1.449 in Kansas City Missouri yesterday. Was headed to Flying J for $1.479 when I stumbled onto a new Conoco just up the street.
 

GotDiesel?

Top Post Dawg
Joined
Jul 11, 2000
Location
Pacific NW
TDI
2001 Jetta GLS
Kind of depends on what kind of EPA numbers the Passat TDI delivers. If they've been posted I missed them.

If gas goes to $3/gallon this summer like some suggest it might, at least in California, AND VWOA markets shrewdly, it could help a bit, I suppose.

But people still buy vehicles on other factors and the cost of fuel hasn't risen to the point, yet, where a significant number of people will ditch their SUVs and buy something more sensible.
 

wxman

Veteran Member
Joined
Oct 26, 1999
Location
East TN, USA
TDI
Other Diesel
[ QUOTE ]
But people still buy vehicles on other factors and the cost of fuel hasn't risen to the point, yet, where a significant number of people will ditch their SUVs and buy something more sensible.

[/ QUOTE ]

Appears you're right based on this USA Today article:

Gas prices don't scare off SUV buyers
 

MITBeta

Top Post Dawg
Joined
Feb 24, 2001
Location
Boston's Metro South-West
TDI
2001 Jetta TDI, 2004 Sprinter CDI Passenger (Mid/High), former: 1996 Passat TDI Variant
Truthfully if you're buying a $25000+ vehicle that get about 20 miles per gallon, your fuel costs are going to be inconsequential compared to the cost of the vehicle. Yes, you can save a few dollars by buying a more efficient vehicle, but you might save 10% on the total cost of ownership... it's not as though it's 50% or something like that (unless you drive the car for 12 years, which is highly unlikely...)
 

MileageDude

Veteran Member
Joined
Mar 3, 2003
Thinking about the reasons why operating diesel vehicles are not popular?

Ask most people in the US and diesel equals truck. Plus if you really want to benefit with diesel in a car it would be best to compare it in manual transmission not automatic for the most mpg.

Question? Do you think a soccer mom wants to shift with her right hand, talk on her cellular left-handed and between shifts apply make-up gracefully?

She'd have to be talented. /images/graemlins/confused.gif

Plus passing out all the junk food to the kiddies in the back seat is tough while mastering all the other poop up front as pilot. /images/graemlins/tongue.gif

Now your question is about the Passat. Well the Passat is a nice car but it is a small car in comparison to a minivan. As well, many owners/operators of mini vans and SUVs don't jump ship to another brand of vehicle in a hurry due to huge bank /lease payment penalties and being up to their teeth in debt as many Amercians find themself now-a-days.

As for the article concerning SUV sales on the rise, think for a moment about gasoline being $2.50 a gallon. This is chump change. In 1978 the US was paying 68 cents a gallon and that was high with minimum wage around the mid-$2.65/hr range. That's 26% of your wage back then.

Now, let's talk europe. Go up to a Total and fill 78 litres of Super sans plomb costing almost $85 USD conversion french francs or gasoil costing $53 USD conversion dollar. Then we talk road tax, insurance breaks and a fiscal horsepower rating break too.

In europe there are keen advantages to diesel that the US does not give in operating taxes and insurances.

_____________________
Year.....Per Gallon USD
1978 65.2
1979 88.2
1980 122.1
1981 135.3
1982 128.1
1983 122.5
1984 119.8
1985 119.6
1986 93.1
1987 95.7
1988 96.3
1989 106.0
1990 121.7
1991 119.6
1992 119.0
1993 117.3
1994 117.4
1995 120.5
1996 128.8
1997 129.1
1998 111.5
1999 122.1
2000 156.3
2001 153.1
 

Rick P.

Veteran Member
Joined
Jul 20, 2002
Location
Barrie, Ontario
TDI
'97 Passat, Tornado Red, RIP Feb 17, 2006
I agree with MileageDude. Besides, the local fuel price for me is currently 72.9 cents / litre ($2.75 / U.S. gallon). Pickup trucks & SUV's (with big engines) plus minivans are still top sellers by a long shot. Most people don't consider the cost of fuel when they buy a new vehicle.

TDI's are popular for the commuter crowd, which is why somewhere between 30% and 40% of cars VW Canada sells are diesels. Having said that it's still a small percentage of all cars sold and VW has that small market to itself. If the local market is any indication the price of fuel in the U.S. will have to go a lot higher than $2.50 / gallon before the masses consider it a factor when buying a new vehicle.

Rick
 

AndyBees

Top Post Dawg
Joined
May 27, 2003
Location
Southeast Kentucky
TDI
Silver 2003 Jetta TDI, Silver 2000 Jetta TDI (sold), '84 Vanagon with '02 ALH engine
Back in 1980 when I purchased my first VW diesel, in my neck of the woods diesel was .999 USD. According to my Excel Spreadsheet, since March of 2002 my average cost for a gallon of diesel has been $1.344 with the least price being $1.129 and the highest at $1.659. The high price was where I was in a trap and only purchased enough to get back to sane country....... /images/graemlins/grin.gif

I agree about the soccer moms to a degree. However, my co-worker's wife is into soccer with their kids. I have had an opportunity to go to a few games. I don't see the SUVs sitting in the parking lots that the main stream media reports that "soccer moms" are driving ....... in fact, quite the contrary. Soccer mom's are not a product of what they drive ... but, only the fact their kids want to play the game. Now, you might say if the kids want to play soccer the "moms" must buy a huge gas guzzling SUV to haul them to practice and to the games. I don't see that to be the "real norm." For the most part, I believe we Americans buy according to desires and not our wallets...... which contributes to that huge debt of the average family/individual. Therefore, the "soccer mom" drives whatever is in the driveway......which may or may not be an SUV or a Passat! /images/graemlins/grin.gif My two cents worth!
 

dieseldorf

Top Post Dawg
Joined
Oct 11, 2000
Location
MA
TDI
ex- 1996 wagon, ex-2000 Jetta
OK, so the gas prices won't sway peoples' overall buying decision but will it make a "full size"* car, returning 35mpgs, more visible?



*my interpretation
 
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