By By JESSICA SIEFF / Niles Daily Star
NILES – The announcement Tuesday by automobile giant General Motors that the company would be forced to close four sport utility vehicle and truck plants – as well as review the future of the Hummer brand – was a jolting reminder that the 'gas prices' issue is affecting communities large, small, far, wide and right here.
The decision came in the wake of rising fuel costs and changing consumer trends.
"We at GM don't think this is a spike or temporary shift," the Associated Press reported GM Chief Executive Rick Wagoner said during the announcement. "We believe that it is by and large permanent."
Devastating words for more than eight thousand people who are projected to lose their jobs. Less than comforting words for those individuals and businesses who are trying to navigate the new consumer climate.
President of Red Bud Motors Amy Ritchie said that she has already seen a change in attendance at some of their smaller events in comparison to bigger, headlining races.
"What we're seeing is just anything that is any kind of regular event … we're seeing a downturn," she said. "It's kind of like people are skipping weekends and saving up for the big ones."
This is the Red Bud Track and Trail's busy season – and normally the streets of Buchanan are filled with trucks, trailers and cars packed with fans – all of which add to the local economy, eating at area restaurants, taking part in area entertainment and staying at area hotels. That could all take a hit with more people choosing to make fewer visits to the track.
In anticipation of that, Ritchie said that she is looking at the possibility of scheduling events while thinking in terms of quality over quantity. "What we're feeling is we have to create bigger events … have fewer events and make them bigger."
Because of its wider draw – bringing fans in from as far away as New York – Red Bud Track and Trail may find itself struggling more so than some local festivals, who depend heavier on local residents.
"I don't think it will effect the attendance as much as it will effect the spending," said Will Trepanier, co-chairperson of the 2008 Niles Riverfest.
"Most attendants are local," Trepanier said – coming from Niles, Buchanan, Edwardsburg and Cassopolis. While the festival may not take a hit in attendance those attendants may not spend as much money with festival vendors. "A couple of the vendors have debated on returning," said Trepanier. But he added, sales aren't expected to be effected enough for them not to come – and those vendors who were debating whether or not to do so – have decided to return to the festival.
"It's not just the gas prices," he said. "It's the overall economy."
As the cost of fuel continues to soar – the fact that many Americans and residents right here in Niles are opting for more cost efficient solutions – is more than evident. When Wagoner announced the ceasing of operations at sport utility vehicle and truck plants in Wisconsin, Ohio, Ontario and Mexico, according to the Associated Press, he also announced a review of the Hummer brand, and left its future open to its possible sale. That news shook the Michiana area, which takes pride in its part of the production of the Hummer brand vehicles.
General Motors wants to produce a more fuel efficient car – hoping for production to start in 2010 – but that doesn't provide a solution for consumers looking to lighten the weight of their fuel costs now.
"Well, people are keeping their older cars," said Pete Adams of Pete's South Side Marathon in Niles. "But they're looking for cars that have good gas mileage." Adams has seen the community struggle through a fuel crisis before. He has been in business for 40 years. "Look at the 70s," Adams said. "Look at what happened." Whether it's experience or optimism – Adams has a slightly different view on the situation than some. "It goes through a cycle," he said. A cycle consumers may find themselves just having to ride out.
Adams said he still sees plenty of SUVs out on the road – but he adds that "people are going back" and trying to find older cars with better mileage. Some are making sure to keep their cars in better shape – spending money on tune-ups and services that will keep their car running longer – rather than spending money on a newer model.
"People are not filling up their tanks like they used to," Adams said. "It's a shame you know, it really is a shame … I wish we could work the problem out."
Instead the problem grows.
The rising costs of fuel are not just fostering frustration at the pumps. A report by Chicago Public Radio reported that the theft of fuel has taken on new form. "Police in Porter County, Ind., say they've seen a surge in cases of people stealing diesel fuel from semi-trucks," states the report. "The department has no leads on eight cases reported this year at one truck stop in the county."
Other reports out of Detroit and even locally say that the theft of fuel is on the rise and the gas is coming straight from victims' tanks.
Just this past week, two reports were filed with the Niles City Police Department of drive-offs at local gas stations. The Shell station on S. 11th Street reported $20 in gas – amounting to just over five gallons at $3.99 per gallon was stolen in a drive off at that location. Another station reported the theft of $57.01 in fuel. The suspected vehicle had out of state plates.
So many headaches seem to have some consumers turning their backs on the fuel crisis altogether. Chris Pawielski, at Cycle and Fitness in Niles , said he's seen an increase in cycle upkeep. An attempt by some consumers to find other means of transportation completely. "It's absolutely been reflected in repair and service," he said. "People are digging their bikes out."
Digging their bikes out and considering a different form of commute. Pawielski said he's seeing customers come in to get fitted with all the necessary gear and knows of a couple who had decided to use their cycles for commuting back and forth to work. "Everybody mentions it. Everybody says to me – 'oh this must be good for you'."
The full service bike shop is busy. Pawielski said he is working on having at least 25 bikes in need of repairs and tune-ups finished up that are due this week.
But if anything gives a picture of the complexity of the fuel crisis it might just be laid out in the bike shop. "A lot of this is like discretionary income," Pawielski explained. Consumers who are digging those bikes out to use for more recreational activities -leaving the car in the driveway and using the bike to get to a friend's house or for entertainment after work – can't always deny the necessity for their automobiles. "It's hard to say," whether or not this crisis will surge business for Pawielski. "If they go broke buying gas," he said, bicycles thought to be a solution could turn out to be a luxury not to be afforded.
So the headaches continue. The questions unanswered. And many will be forced to sit back and wait for a change. Or make changes to the way they live while they wait.
"You know what I tell people," said Adams. "I tell them, when it gets down to half a tank fill it up … because it doesn't hurt as bad."