Sunday, July 6, 2008

Continued Woes of Detroit a Panacea for Asian Scooter Industry

While Detroit appears to be on the precipice of imminent collapse amid increasing signs that gas prices are not likely to return to sub $4 levels, Asian scooter manufacturers are reaping a significant and growing windfall of American dollars as consumers turn in record numbers to the low cost alternative.

Popular European and Asian scooters that are both affordable and incredibly fuel efficient, are being snapped up in record numbers as fuel prices continue to soar and consumers see no alternatives on car dealer lots worthy of the sticker price for a new car purchase in the current energy crazed environment.

Indeed, we are beginning to see car dealers adding scooter lines to their sales inventory in an effort to keep the doors open. Although the margins for the low priced scooters are much lower, the demand is outstripping supply at the moment which is not lost on the cash strapped dealers eager to get customers back on lots again.

The question that has to be asked though is "as the continued transfer of wealth, be it petrodollars to the middle east or scooter dollars to the middle asians, continues to flow outside of the US, what long term affects will this have on the US economy and position as an economic superpower?

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