AutoNation's Mike Jackson Says High Gas Prices Are Good for the U.S. Auto Industry

But First Snide's Remarks: We agree that the opportunity for Detroit to once again lead the world in car making is at hand...a manhattan project to get electric cars on the American roads could put the domestic industry back on its feet...good idea but based on past experience I have no confidence in the bums from Detroit...do you? let me know what you think, msnide@theautochannel.com.

Washington DC June 9, 2008; The AIADA newsletter reported that Detroit's big auto makers are slashing jobs, closing factories, and undertaking costly revamps of their product strategies to cope with $4 a gallon gas.

What's the worst thing that could happen now? Gas could get cheap again, says Mike Jackson, chairman and CEO of AutoNation Inc., America's biggest auto retailer. "For once we actually have viable alternatives and exciting technology that are really game changers" in the effort to wean transportation from petroleum, says Jackson.

"However, if the price of petroleum goes down . . . it undercuts the viability of new technology." Jackson's point of view isn't based on concerns about this month's sales.

What has him worried is that in the future the auto industry will be stuck trying to make sense of a fundamentally incoherent national energy strategy. "Now, going forward over the next 10 years we are going to have to convince consumers why they should pay more for a smaller engine...or some new technology that is going to give them a tremendous benefit on fuel efficiency," Jackson told the Wall Street Journal.

"I'm a good car salesman. If I have high gas prices and an open-minded consumer, it's very doable. If we have cheap gasoline, it's mission impossible." For the full article, click here.