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The inevitable begins to happen
Posted by: McQ on Friday, May 02, 2008

Apparently this qualifies as news:
Soaring gas prices have turned the steady migration by Americans to smaller cars into a stampede.
Well duh!

This is a cyclic thing with those of us old enough to have driven during the late '70s and early '80s remembering a similar rush to smaller cars for the same reason (it not only introduced the Honda to the US in a big way, but brought us the Yugo as well).

Coyote Blog gives us a little perspective on this "crisis" with a chart:


If you're having difficulty reading the colors, that bottom line is the US.

The dollar strengthens, the economy expands, gas prices drop and SUVs will again rule the roads.
 
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Previous Comments to this Post 

Comments
They still DO rule the roads, this nonsense not withstanding, Bruce.

Consider; the numbers I’m seeing, that all these breathless reports of small car sales are based on, suggest that only one unit in five is a small car. Drudge’s headlines confirm my read of the numbers, this morning.
Stampede to buy smaller cars; 1 in 5 sold now a compact...
Most are still either full sizers (including xovers), pickups or SUV’s. Sales of the latter are off, but sales of cars are off across the board, as they would be duing any economic slowdown.

It becomes clear to me that the purpose of the story is to encouage sales of smaller units. What basied press?


 
Written By: Bithead
URL: http://bitsblog.florack.us
What would be far more telling is the extent that compacts are being discounted from the sticker price vs. larger cars. This would give a clearer indication of the level of demand for that particular model segment. I hear anecdotally that Fits, Aveos and Yarises are going out at list but I have no hard stats.
 
Written By: AIDA
URL: http://
The only reason this might be news is that people didn’t change their buy habits prior, really.

They simply stopped buying hoping it would blow over and the price trend would reverse or at least level off.

I think people didn’t want to buy a car they don’t really like and have the gas price crash and be stuck with an econo-box they can’t sell. But now that prices have been high for a while that fear is less.

Another reason is that fuel is gotten to a turning point to where people are planning their lives around gas consumption. In general this may be great for the AGW fear merchants these type of behavioral changes negatively affect the economy.
 
Written By: jpm100
URL: http://
As for the crisis on that chart...

if other countries want to tax the living piss out of themselves at the pump that’s their problem and not my concern.

Also if you live an Euro country, you’re closer in size to most of the 50 US states than the US itself. Our geography & demographic for requires cheap gas.
 
Written By: jpm100
URL: http://
Heh, I’m about to buy a BMW M3,

http://www.bmwusa.com/Standard/Content/Vehicles/2008/M/M3Coupe/default.aspx,

Small car, low gas mileage.

Your last sentence tells it all.
 
Written By: Jamie
URL: http://

 
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