« Mercedes build new 4-cylinder diesel |
Main
| Oil Prices Rose Above $111 a Barrel »
April 11, 2008
Everyone is talking small these days. And no surprise, given the rising price of gasoline – which hit a new record on the futures market Friday – and the general sense of unease with the economy.
“Downsizing arrives – with a vengeance” was the headline for a cover article in Automotive News which cited a big shift to small cars accelerating in March, with sales of such compacts as the Honda Fit and Ford Focus reporting gains against a general decline in sales.
“Smaller, less-thirsty, cheaper cars enjoy big sales boom” reported James Healey in USA Today, adding that they are the brightest spot in the dreary auto market. The article cited a study by J.D. Power and Associates which found more owners of small cars trading in for something similar rather than trading up.
The New York Times cited a move by auto makers to align their products with the computer industry where evolution equals smaller and smaller. It said the industry was trying to overcome the pejorative overtones of compact and subcompact.
All in all, small is once again beautiful. Remember the last time that was trendy? That was the title of economist E.F. Schumacher’s bestseller which came out in 1973 – the year of OPEC’s first oil embargo and the end of the Western World’s dominance in all things economic and political.
These are certainly very uncertain times.
- Peter C.T. Elsworth
Posted by Peter C. T. Elsworth 
at 2:56 PM to commentary
| Permalink
Please be civil. Vicious comments, personal attacks and profanity won't be published.
