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# Today s low gasoline prices make consumers willing to

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Manager
Joined: 03 Jul 2006
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Today s low gasoline prices make consumers willing to [#permalink]

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08 Aug 2006, 20:31
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Todayâ€™s low gasoline prices make consumers willing to indulge their preference for larger cars, which consume greater amounts of gasoline as fuel. So United States automakers are unwilling to pursue the development of new fuel-efficient technologies aggressively. The particular reluctance of the United States automobile industry to do so, however, could threaten the industryâ€™s future.

Which of the following, if true, would provide the most support for the claim above about the future of the United States automobile industry?

(A) A prototype fuel-efficient vehicle, built five years ago, achieves a very high 81 miles per gallon on the highway and 63 in the city, but its materials are relatively costly.
(B) Small cars sold by manufacturers in the United States are more fuel efficient now than before the sudden jump in oil prices in 1973.
(C) Automakers elsewhere in the world have slowed the introduction of fuel-efficient technologies but have pressed ahead with research and development of them in preparation for a predicted rise in world oil prices.
(D) There are many technological opportunities for reducing the waste of energy in cars and light trucks through weight, aerodynamic drag, and braking friction.
(E) The promotion of mass transit over automobiles as an alternative mode of transportation has encountered consumer resistance that is due in part to the failure of mass transit to accommodate the wide dispersal of points of origin and destinations for trips.

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VP
Joined: 29 Dec 2005
Posts: 1339

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Re: CR1000: US Auto industry [#permalink]

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08 Aug 2006, 22:10
i know its not A and E.
among B, C and D, i chose B but should be C.

wait for you guyss response.....

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CEO
Joined: 20 Nov 2005
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Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008

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08 Aug 2006, 23:25
Must be C.

This means US automakers will lag behind the other automakers. Hence aut industry will be threatened.
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

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VP
Joined: 15 Jul 2004
Posts: 1439

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Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)

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08 Aug 2006, 23:28
Going with C as well.

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Manager
Joined: 03 May 2006
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Location: India

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09 Aug 2006, 01:43
Should be C ."could threaten the industryâ€™s future" mentioned in the last line suggests that in future,demand for fuel efficient cars will increase.In passage nothing is stated regarding this increase.Only option C gives some hint of this increase.

-Guleri

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Senior Manager
Joined: 19 Jul 2006
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09 Aug 2006, 01:47
C ... agree with PS

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Senior Manager
Joined: 15 Aug 2004
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09 Aug 2006, 02:37
Yup Going with C....

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Manager
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09 Aug 2006, 06:32
Yip OA: C

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Intern
Joined: 09 Aug 2006
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09 Aug 2006, 07:38
It has to be C since in future nobody knows if fuel cost will be the same or increase. And if it increases, then customers will chose to buy more fuel effecient cars and thus bigger car sales wud be badly hit.

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Director
Joined: 28 Dec 2005
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09 Aug 2006, 13:24
chose C, this question made me laugh...this truly is the predicament that US auto giants find themselves in today

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SVP
Joined: 30 Mar 2006
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09 Aug 2006, 23:08
No doubt on C.

Auto makers around the world expect the oil prices to rise in the future hence are investing in research into building fuel-efficient vehicles.

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Current Student
Joined: 29 Jan 2005
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14 Aug 2006, 07:01
Late, but (C) here because the US automakers will lose out in the long run to more efficient foreign models when the price of gas skyrockets due to George Bush`s...... (you can see where this is going )

1:44

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14 Aug 2006, 07:01
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