Discord among the OPEC nations may be part of a series of events helping to reduce gas prices. Spring troubles in the Arab world and revolution in Libya originally created some doubts about supply, and prices rose to $127 per barrel in April. U.S. drivers have reduced driving and shifted to higher mileage vehicles - two actions which have helped to reduce gas prices.
Avis Budget Group Inc. and Hertz Global Holdings Inc. have been in a bidding war for rival Dollar Thrifty Automotive Group Inc. Avis Budget just announced it has a new priority, that of merging with its previous partner Avis Europe in a move that globalizes the Avis and Budget brands and makes the largest publicly-traded car rental company in the world.
As a result of high gas prices and used vehicle supply, ALG is reducing residuals by 2% from the May/June guide. ALG believes increasing new vehicle sales will improve used car inventory and place downward pressure on used vehicle prices.
The National Highway Traffic Safety Administration has started an extensive investigation into whether the lithium-ion batteries that will be used in most electric vehicles have any possible fire risk. The study will focus on whether or not the cells can catch fire while being charged or when in a collision.