Small cars vs. short memories

[jwight]

Small cars pose a big risk for automakers

New models debut at NYC show, but will Americans actually buy them?

AP, updated 7:06 p.m. ET, Thurs., April 9, 2009

NEW YORK - Music blared and lights blinked as the pint-sized car descended from the ceiling. A platform lowered it to the ground and photographers rushed to snap pictures.

This was how the Toyota showed off its latest, tiniest car — the iQ — at the New York International Auto Show. The message from the Japanese automaker was clear: This is the car of tomorrow.

But is it?

Small cars and hybrids surged in popularity last summer as gasoline prices blew past $4 a gallon. Compacts and subcompacts — including cars like the Toyota Yaris and Ford Focus — surged to more than a quarter of new vehicle sales in June and July, according to data from auto Web site Edmunds.com.

But as the economy sputtered and gas prices collapsed, small cars lost ground to trucks and sport utility vehicles. Compacts and subcompacts last month commanded about 20 percent of the new car market, according to Edmunds.

"I heard it the other day — I don't know if it's true — that Americans' memory is about 60 days," said Tim Mahoney, senior vice president of Subaru of America. "You can see the fuel-economy situation from last summer. I heard (a dealer) the other day talking about how they couldn't sell Civics and Corolla and Priuses fast enough. All of a sudden, 60 days later, we're back on SUVs and trucks."

Small cars pose a big risk for automakers - Autos- msnbc.com

[forestacademy]

I would never guess how much gas prices will go up to, but I sure don't want to be paying $80+ a tank again.

Ill stick with the small cars. But yes, America sure has a short memory.
This year it will be China that will drive up prices. China actualy reported a sizable grouth in auto sales so far this year and as soon as word of that came out Oil went up. Still not like last year and the speculators will most likely stay out of the market this year but I don't expect the prices to stay this low for long.

[Old smart]

We could see prices rise considerably, not for lack of supply or cost of crude petroleum, but due to increased taxation and the coming mandated increase in ethanol use (which by some estimates costs nearly double that of gasoline to manuacture and transport). Small will still be better.

**I'm still "smarting" over seeing the taxation on my cigars (both federal and state) go up 700% as of 01 APR in the mad search for more giveaway money.

[forestacademy]

Well maybe if they lift those Cuban travel restiction you will be able to get come cigars for less

[NeWave]

My memory sucks, but not enough to forget my wallet was aching! Plus if something cost that much before, you can bet they'll rebound again. Buying oversized vehicles that they have no use for but to haul their paranoid butts around. I understand if for business use. But most Americans have short memories... so you know how that goes.

Old Smart, Missouri just had one heluva tax hike on cigerettes. I myself don't smoke, but $6.00 for a pack? ouch. I remember when they were 3...

[mfoster]

How 'bout 23 cents a pack. Put a quarter in the machine, get a pack of cigarettes out with 2 cents inside the wrapper for your change.

[winyan]

Well since big oil and car manufacturers work hand in glove in the US, is it any surprise that gas prices when down as soon as SUV's and pickups were shown to be a glut on the market?

Now there's all kinds of deals on these giant behemoths. The auto manufacturers will get rid of surplus stock, and then gas prices will shoot up again, imho over $5. this time. Of course, some war in East Bobolinka will be blamed.

Cynical ideas, yes, but old enough to have seen it happen before.

win

[Old smart]

If the government begins forcing the fossil energy companies to divert capital and profits into alternative energy R&D, which is not beyond the realm of possibility, the costs will be passed through. Likewise, if this idea that people can sue business (and gov't) for perceived past or future damages caused by global warming goes anywhere, those costs will be passed through also. Smaller is still better.

[psychobeth]

Man, I remember the lines to fill up my car 'way back in the 70's - odd/even gas rationing and all that stuff.

I remember the first time I sat in a smart. It was in Rome in March, 2001. I wanted it then, and here it is eight years later and I HAVE one. Yes, I reserved it in October, 2007 and got it three weeks ago.

This American has a pretty good memory and wouldn't have one of those giant rolling behemoths if you gave it away with a pound of coffee.

Count me smart!!

[Red_Zippy]

Originally Posted by psychobeth

Man, I remember the lines to fill up my car 'way back in the 70's - odd/even gas rationing and all that stuff.

I remember the first time I sat in a smart. It was in Rome in March, 2001. I wanted it then, and here it is eight years later and I HAVE one. Yes, I reserved it in October, 2007 and got it three weeks ago.

This American has a pretty good memory and wouldn't have one of those giant rolling behemoths if you gave it away with a pound of coffee.

Count me smart!!

Well... We've only had our Smart for 7 days. But I still remember what a pain (in everything) it was to drive the Dodge Ram. It's a lousy vehicle for the city. Is it any wonder we rarely went further than 5 miles out? I'd do all of my running around primarily on the weekend, and it was always a chore. During the week, I'd walk to neighborhood businesses and to work. It would make a full tank in the truck last a couple of months. But it also defeated the purpose of even owning a vehicle in the first place.

I much prefer the Smart to that beast. Red Zippy gets the job done, and without me losing my temper or stressing out every two seconds because of some idiot (or the utter lack of manueverability).

Heck, I dropped by the Entertainmart on Alpha and Preston. When I was waiting to pull out on Preston, a taxi driver waved me in. I would have been very "eep" in the truck, but in Red Zippy, it was a "wave thank you" and pull into the lane. No sweating bullets. No freaking out. Now THAT is what I call "peace of mind" on the road.

I hope they eventually take my truck and chop it up and manufacture Smart parts from it.