Small Car Trend to Stay?

  • Since gas prices have dropped, some buyers are showing more interest in big vehicles. (Photo courtesy of the US Department of State)

When gas prices went up, car
companies cut their production plans for
making big vehicles, and made new plans
for more fuel efficient cars. The question
now is, with gas prices falling, will those
plans change again? As Dustin Dwyer
reports, the experts say probably not:

Transcript

When gas prices went up, car
companies cut their production plans for
making big vehicles, and made new plans
for more fuel efficient cars. The question
now is, with gas prices falling, will those
plans change again? As Dustin Dwyer
reports, the experts say probably not:

It’s not as easy to make money on a small car as it is on an SUV.

Small cars are cheaper, and they have lower profit margins. But as gas prices went up earlier this year, auto
executives insisted they’d find a way to make money on small vehicles.

Since gas prices have dropped though, some buyers are showing more interest in big vehicles.

Michael Robinet tracks the auto industry for the firm CSM Worldwide. He says the long term trend still
points to smaller vehicles.

“There may be a ratcheting down by some consumers in terms of the size of vehicles that they’re looking
for, irrespective of where fuel prices go in the future.”

Robinet says the bad economy is forcing many people to downsize. And the federal government has new
rules that mandate cleaner cars, so Robinet says getting smaller will be the big trend for years to come.

For The Environment Report, I’m Dustin Dwyer.

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