As Gas Costs Soar, Buyers Flock to Small Cars
#1
05-02-2008, 09:02 AM
Join Date: Nov 2005
Location: Chicago area
Posts: 955
As Gas Costs Soar, Buyers Flock to Small Cars
http://www.nytimes.com/2008/05/02/bu...524&ei=5087%0A
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Soaring gas prices have turned the steady migration by Americans to smaller cars into a stampede...
The switch to smaller, more fuel-efficient vehicles has been building in recent years, but has accelerated recently with the advent of $3.50-a-gallon gas. At the same time, sales of pickup trucks and large sport utility vehicles have dropped sharply.
In another first, fuel-sipping four-cylinder engines surpassed six-cylinder models in popularity in April...
But with oil prices expected to remain high for years, auto industry executives are seeing a turning point.
“The era of the truck-based large S.U.V.’s is over,” said Michael Jackson, chief executive of AutoNation, the nation’s largest auto retailer.
The article also mentions that this switch is a problem for US manufacturers, who are heavily invested in bigger trucks and SUVs, but personally, I hope they can revamp their fleets, go hybrid, and start to catch up.
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Originally Posted by The New York Times
Soaring gas prices have turned the steady migration by Americans to smaller cars into a stampede...
The switch to smaller, more fuel-efficient vehicles has been building in recent years, but has accelerated recently with the advent of $3.50-a-gallon gas. At the same time, sales of pickup trucks and large sport utility vehicles have dropped sharply.
In another first, fuel-sipping four-cylinder engines surpassed six-cylinder models in popularity in April...
But with oil prices expected to remain high for years, auto industry executives are seeing a turning point.
“The era of the truck-based large S.U.V.’s is over,” said Michael Jackson, chief executive of AutoNation, the nation’s largest auto retailer.
The article also mentions that this switch is a problem for US manufacturers, who are heavily invested in bigger trucks and SUVs, but personally, I hope they can revamp their fleets, go hybrid, and start to catch up.
#2
05-02-2008, 12:18 PM
Re: As Gas Costs Soar, Buyers Flock to Small Cars
As usual for the 'Times -- not even a mention of Hybrids.
The shift is very deep. For the past year, I have been the one expanding the conversation at work to hybrids. Now, my coworkers are bringing up the subject and genuinely want to know my experience with the TCH. Some of these are people that I barely know except at work.
Two have recently bought hybrids, and more are indicating plans to do so.
I think I read somwhere recently that the TCH is now outselling the V6 versions of the Camry -- this in spite of the removal of the tax credit.
... and, as soon as the tax rebate clears, we will be a two-hybrid family. The only question now is do I get the HiHy now or wait a month or two for new developments. After all, new hybrid development announcements are happening fast and frequent now.
(For those that are wondering from the "HiHy vs MMH" post, my wife decided on the HiHy over the MMH becasue she felt the MMH sat a little higher that she liked, and felt it was somewhat sensitive to cross-winds at mid-range to high speeds. We also tow our two ocean kayaks a lot, and liked the higher towing capacity and beefier roof rack of the Toyota.)
The shift is very deep. For the past year, I have been the one expanding the conversation at work to hybrids. Now, my coworkers are bringing up the subject and genuinely want to know my experience with the TCH. Some of these are people that I barely know except at work.
Two have recently bought hybrids, and more are indicating plans to do so.
I think I read somwhere recently that the TCH is now outselling the V6 versions of the Camry -- this in spite of the removal of the tax credit.
... and, as soon as the tax rebate clears, we will be a two-hybrid family. The only question now is do I get the HiHy now or wait a month or two for new developments. After all, new hybrid development announcements are happening fast and frequent now. (For those that are wondering from the "HiHy vs MMH" post, my wife decided on the HiHy over the MMH becasue she felt the MMH sat a little higher that she liked, and felt it was somewhat sensitive to cross-winds at mid-range to high speeds. We also tow our two ocean kayaks a lot, and liked the higher towing capacity and beefier roof rack of the Toyota.)
Last edited by FastMover; 05-02-2008 at 12:38 PM.
#3
05-02-2008, 10:51 PM
Re: As Gas Costs Soar, Buyers Flock to Small Cars
I was wondering, as I read your post. HiHy is a nice choice. Higher towing capacity is always good. The FEH/MMH are nice too. Drove a 2008 FEH a couple of weeks ago. Quite nice, and would be plenty for our family.
#4
05-03-2008, 04:05 PM
Re: As Gas Costs Soar, Buyers Flock to Small Cars
This is going to put a bigger squeeze on the domestic automakers who make more profit selling land barges than they do on fuel sippers. Oh well, they need to respond quickly to the market or go out of business. I hope they turn it around.
#5
05-06-2008, 06:18 AM
Re: As Gas Costs Soar, Buyers Flock to Small Cars
You're correct; but if U.S. automakers could respond quickly, they would have done so already. Five years after gas prices started to jump, the big three are still churning out the same old "land barges," while trying to hype new, fuel-efficient models that they plan to build sometime in the future.
Meanwhile, Honda and Toyota remain ahead of the curve, because they developed hybrids five years BEFORE gas prices jumped. They covered all the bases when they didn't really have to, and when the game changed, they were ready.
The Big 3 could have done the same, but like my uncle who recently retired from Ford says, "American car companies aren't in the business of selling cars. They're in the business of selling stock."
When you care more about quarterly profits than quality products, you wind up sacrificing both. But that doesn't matter to the people who run these companies. They jack up the stock prices however they can, then bail out with golden parachutes. And if things get too bad, our trusty federal government will bail them out.
Doesn't matter if it's a car company, an investment bank, or whatever. We're all on the hook for any disasters they create. It's a real gold mine -- they get the gold, and we get the shaft.
So don't count on any turnarounds in Detroit. They're too busy firing people and closing factories to worry about building new cars.
Meanwhile, Honda and Toyota remain ahead of the curve, because they developed hybrids five years BEFORE gas prices jumped. They covered all the bases when they didn't really have to, and when the game changed, they were ready.
The Big 3 could have done the same, but like my uncle who recently retired from Ford says, "American car companies aren't in the business of selling cars. They're in the business of selling stock."
When you care more about quarterly profits than quality products, you wind up sacrificing both. But that doesn't matter to the people who run these companies. They jack up the stock prices however they can, then bail out with golden parachutes. And if things get too bad, our trusty federal government will bail them out.
Doesn't matter if it's a car company, an investment bank, or whatever. We're all on the hook for any disasters they create. It's a real gold mine -- they get the gold, and we get the shaft.
So don't count on any turnarounds in Detroit. They're too busy firing people and closing factories to worry about building new cars.
#6
05-06-2008, 06:32 AM
Re: As Gas Costs Soar, Buyers Flock to Small Cars
But Toyota learned they could sell every Prius that came to the States and Honda discontinued to Insight but kept the Honda Civic on. Toyota also saw the same future Al Gore could see and decided to make a long-term gamble that has paid off. Ford was also on the same track but then they ran off the lady in charge of their hybrid program and remain with just two in their stable.
GW Bush repeated Reagan's example who also ripped out Jimmy Carter's energy programs. Today, we pay the price for electing these short-sighted "leaders." Tomorrow, the deficits they ran up become due.
Bob Wilson
#8
05-06-2008, 04:27 PM
Re: As Gas Costs Soar, Buyers Flock to Small Cars
I'm sure that when Barack gets into office with a veto-proof majority in the Senate that all sorts of mandates, requirements, regulations, surcharges, taxes, and an explosion of government spending will solve all our problems. Let's punish the greedy corporations that only exist to make a few people wealthy while raping the planet. Make them fund all the feel good give-away programs that the rest of us deserve. Better yet, let's drive all capital out of America and we can all go back to growing our own food, tending our herd, and making our own clothes and beeswax candles. All tongue in cheek of course.
If the big three domestic car builders don't have the foresight to make the right cars let them feel the pain.
If the big three domestic car builders don't have the foresight to make the right cars let them feel the pain.
#10
05-06-2008, 06:57 PM
Re: As Gas Costs Soar, Buyers Flock to Small Cars
Funny
Here's what I thought...
Not to expect a new government's spending/taxing/punishing policies to solve all our problems.
Hitting up the "nasty" corporations (BIG Oil, BIG Iron, etc.) won't solve all our problems either. They'll just leave - or likely find the ever-present loopholes as long as they can. Many already have essentially left, getting much of their product or labor from overseas, where costs are unfairly cheap. I'd like to see some of this change (I'm for FAIR trade, not FREE trade), or else the US worker does NOT have a fighting chance to compete. But if you go overboard, there are consequences.
Here's what I thought...
Not to expect a new government's spending/taxing/punishing policies to solve all our problems.
Hitting up the "nasty" corporations (BIG Oil, BIG Iron, etc.) won't solve all our problems either. They'll just leave - or likely find the ever-present loopholes as long as they can. Many already have essentially left, getting much of their product or labor from overseas, where costs are unfairly cheap. I'd like to see some of this change (I'm for FAIR trade, not FREE trade), or else the US worker does NOT have a fighting chance to compete. But if you go overboard, there are consequences.
