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28/11/2014

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Automakers,AirlinesHitbySkyHighFuelPrices

Topic: General Motors will close four truck factories and move to make more cars. Also,
airlines are retiring older planes and cutting flights and jobs. Transcript of radio broadcast.
Source: VOA
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This is the VOA Special English Economics Report.

There was more evidence

this week of the effects of high oil prices on the


What'sina
Word:...

transportation industry.

$10.38
Automakers reported further drops in sales of trucks and SUVs

, sport utility

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vehicles, in the United States. Big, fuelhungry vehicles brought in big profits until
Americans faced big costs for fuel. Now they want smaller and more fuelefficient cars.

Morebookslikethis

The head of General Motors, Rick Wagoner, says the prices are changing consumer

behavior

, maybe permanently. G.M. sales in the United States in May dropped

Songs

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 strong

sales of cars.

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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 militarylike 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 findings

show that Americans are driving less. The Federal Highway

Administration says the number of kilometers

traveled on public roads

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has dropped since late two thousand six.

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28/11/2014

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Many people may be driving less because of high gasoline prices. But transportation
officials worry that less demand for gasoline will mean shortages

of money

from fuel taxes that support roads.

Use of public transportation, though

, 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 jet

fuel.

This week, more aircarriers

in the United States announced plans to cut flights

and jobs and remove older, less fuelefficient planes from service. Continental Airlines
said recordhigh fuel prices have produced the worst

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 worldwide

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve
Ember.

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