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According to a survey conducted by the University of Michigan Transportation Research Institute over 100 automotive engineers and executives believe we can expect to be paying $4 for a gallon of gas by 2015 and $5 per gallon by 2020.
In addition to higher gas prices, many of the auto executives expect that emission and fuel economy standards will sharply increase during the next couple of years.
Unfortunately, it doesn’t appear that all of the auto executives are excited about having to switch gears and focus on selling smaller vehicles. According to an article published on CNN.com:
“General Motors Vice Chairman Bob Lutz, a long-time critic of government fuel economy regulations, recently compared the attempt to force carmakers to sell smaller vehicles to the notion of ‘fighting the nation’s obesity problem by forcing clothing manufacturers to sell garments only in small sizes.’”
Thankfully, it appears Mr. Lutz’s view is the exception to the rule. Thanks to the increased demand for hybrids, as well as the increased interest in electric cars – coupled with a drop in demand for big trucks and SUVs - it looks like American consumers have spoken.
It’s too bad that it’ll take $4 and $5 gas for this to happen.
{ 11 comments… read them below or add one }
If the consumers had spoken, there would be no need for government to force automakers to sell smaller cars.
Nobrainer:
Not true.
Consumers have not had much of a choice the last couple decades, as the small fuel efficient cars were NOT EVEN OFFERED FOR SALE in the USA. There are MANY small high mileage cars that are available in Europe or even Canada that I and many friends would buy – but WE CAN’T BECAUSE THEY ARE NOT SOLD HERE.
So how can we “speak” when our voices won’t be heard?
Volkswagen sells a crapload of TDI cars because they were the most fuel efficient in the USA for a decade.
Now other small efficient models are starting to trickle in, but companies still sell 25 models of huge SUVs.
There are even some high mileage diesels that are assembled in the USA and shipped to Europe to sell…
Right now, I would kill for the new diesel Mini… But there is no word whether it will be offered in the USA.
The free market does not exist in the American Auto Industry. If it did, every one of the Big 3 would be nothing but a memory. Hundreds of millions in lobbyist cash, corporate welfare handouts and massive bailouts with our tax dollars are not how a free market system works. The industry still likes to call it a free market system, just like Microsoft likes to call the desktop pc market “competitive”, but that does not make it so.
VR and Steve T – thanks for the comments. While we currently may not have ALL of the wide variety of fuel efficient vehicles available to us in the US, we certainly have plenty of choices.
Plus, if we would all try to adjust a few of our driving habits, ALL of the vehicles on the road would be more fuel friendly!
Imagine that – being hit with an oversized bra at 60 mph and using a shoulder pad for protection. This is what GM sees as valid comparison to 4 tonne SUVs.
Mr. Carr you are correct that if people would change their driving habits, even H2’s would be for fuel efficient. The real time fuel consumption screen on my Prius is an incredible tool that I use every day and it has really changed the way I drive. I have also started checking the air pressure on my tires much more often, and I notice the increased fuel economy immediately.
However, I purchased my Prius for a very different reason than someone else purchased their H2 or Ford Escape. I cannot see those who purchased their SUV for whatever reason being at all concerned about fuel economy. Now there may be individuals out there who can prove this is not always the case, but they are the exception, not the rule.
I’m being a real downer here, but I’d venture to guess that if Ford were able to make an Escape hybrid, it would tank miserably and Ford would lose their shirts on the venture because people do not buy Escapes to make “that kind” of statement.
Sorry, change that Escape to Expedition.
Steve – I agree that most people who purchase SUVs – especially the Suburbans and Expeditions – probably aren’t too concerned with getting great gas mileage.
That being said, some hybrid owners aren’t doing it to make an environmental statement, rather they’re doing it because it’s the in thing to do. For example, 1 out of 4 people who own hybrids also own an SUV:
http://www.dailyfueleconomytip.com/?p=226
Johnny – I agree, it wasn’t exactly the world’s best analogy.
Oh well, I guess “the in thing to do” doesn’t necessarily have to make sense.
Maybe I should finally throw that Pet Rock out and give my parachute pants to GoodWill….Nah, they’ll come back in style soon I can feel it.
What’s old is new again!