This is the VOA Special English Economics Report.
There was more this week of the effects of high oil prices on the
transportation industry.
Automakers reported further drops in sales of trucks and , sport
utility vehicles, in the United States. Big, fuel-hungry vehicles brought in big
profits -- until Americans faced big costs for fuel. Now they want smaller and
more fuel-efficient cars.
The head of General Motors, Rick Wagoner, says the prices are changing
consumer , maybe permanently. G.M. sales in the United States in May
dropped thirty percent from last year. The Ford Motor Company had a nineteen
percent drop.
Toyota sales in the United States were down eight percent. But another
Japanese maker, Honda, reported an eleven percent increase on sales of
cars.
General Motors announced it will close four truck factories in North America
and expand car production. It may also sell its Hummer division. Hummers are
military-like vehicles.
But Rick Wagoner said G.M. will go forward with plans to make the Chevy Volt,
a car powered mainly by electricity. He says it will be available no later than
the end of two thousand ten.
Still, new show that Americans are driving less. The Federal
Highway Administration says the number of traveled on public has dropped since late two thousand six.
Many people may be driving less because of high gasoline prices. But
transportation officials worry that less demand for gasoline will mean of money from fuel taxes that support roads.
Use of public transportation, , is up. The American Public
Transportation Association says it increased three percent in the first three
months of this year over last year.
High fuel prices are also affecting air travel. The International Air
Transport Association expects the industry to lose at least two billion dollars
this year, mainly because of prices for fuel.
This week, more in the United States announced plans to cut
flights and jobs and remove older, less fuel-efficient planes from service.
Continental Airlines said record-high fuel prices have produced the
crisis for the industry since the terrorist attacks of two thousand one.
Continental announced Thursday that it will reduce flights in the United
States by sixteen percent during the last three months of the year. The airline
will cut three thousand jobs, about seven percent of its positions .
And that's the VOA Special English Economics Report, written by Mario Ritter.
I'm Steve Ember.