01 May 2008

Americans "shocked" into smaller cars

As most of you who have followed my ramblings know, I no longer own a car and haven't for almost two years. But, eventually we will return to the US where a car (more likely two) will be a necessity. Unfortunately public transport where I live is not what it is in London.

We've been giving this a lot of thought and are being influenced for several issues: the rocketing price of gasoline, the building environmental crisis, the power of the oil-producing nations and the kinds of cars we see people driving here.

Friends of ours just bought a Prius, but this was after they bought an Audi A4 only a few months earlier. Now, this had to be a money losing proposition since they traded the Audi in on the Prius. But, it also demonstrates the mindset that is taking hold in the US as the price of gas zeroes in on the $4 mark (here, it's closer to $10 per gallon). The dealer where the bought the Prius is no longer taking SUVs as trade ins. They had 41 Priuses on April 1 and sold the last one yesterday.

This is exactly what Americans need -- to be shocked into taking drastic steps to counter what is undoubtedly a looming crisis with potentially dire consequences for all of us. It's long puzzled me why more people don't opt for hybrids or at least high mileage small cars. We may finally be at that point. And, I say, hooray for the high price of oil is what will drive us out of our lethargy and put US consumers back in the drivers seat.

An article in toay's New York Times comments on the rising sales of small cars in April:
“It’s easily the most dramatic segment shift I have witnessed in the market in my 31 years here,” said George Pipas, chief sales analyst for the Ford Motor Company.
If the vast majority of Americans opted for small, fuel efficient or hybrid vehicles, we could solve the oil crisis overnight. And, the result would be a dramatic decline in the price of gasoline. It's all about supply and demand.

So, what about my next car? Well, my wife wants a small SUV like the Ford Escape hybrid. I'm pretty sure mine will be a Prius. And our current conversation is about just buying two Priuses. Time will tell, but I would predict that in two more years, the US will have dramatically refitted its auto fleet to smaller cars and this will have started having an effect in the price of oil. We may even be seeing the high water mark now. In a way I hope not because more shock treatment is needed. This is not just a consumer issue. It's a defense issue as well.

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