In today's edition, Industrials editor and analyst Brendan Byrnes discusses rising gas prices and how they affect automakers. More expensive ethanol, numerous refinery issues across the U.S., and the continuing uncertainty over Iran are combining to push gas prices up at the end of the summer. Toyota has long been a beneficiary of high gas prices and should continue to be, especially with its Prius lineup selling incredibly well. Honda's reputation for great small cars should also benefit it.
But one of the more interesting stories is Ford, which, like GM, used to be crippled when gas prices rose. That's because the domestic automakers placed a huge emphasis on gas-guzzling trucks and SUVs for profits, while often selling small cars at a loss. Alan Mulally changed all that when he arrived at Ford in 2006, and it can now compete in the small car segment with cars like the Focus actually making money for Ford. Check out the video below for more on Ford and the other big automakers, and how they're affect by gas prices.
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Austin Smith owns shares of Ford. Brendan Byrnes owns shares of Ford and General Motors Company. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.