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Will The Shift For Small Cars Last?

images-9.jpgWhile most Ford dealerships reacted with joy after Ford Motor Co.’s announcement that they will be making six additional fuel-efficient cars in America, others greeted the announcement with caution.

If the marketplace shift is going to continue long term, then it’s going to be great to have small, fuel-efficient cars in the lineup.

However, it is impossible to predict how long this shift toward fuel-efficient passenger cars will last. It is likely that gas won’t continue to sell at $4.25 per gallon, but who knows how far down it will fall.

This same thing occurred in the ‘70s, and the reality is that America isn’t going to want to eliminate SUVs and pickup trucks forever.

Trucks are needed for construction companies, and therefore will keep being built. Will they become more fuel-efficient for the future? Of course, they are going to have to be.

If gas prices fall to $3 per gallon, customers could very well switch their tastes back to SUVs and trucks.

So, for now consumers are just trying to keep money in their pockets by purchasing small fuel-efficient cars with new car warranties, but as the economy improves and gas prices fall, that may all turn around.

Posted on Tuesday, July 29th, 2008 at 7:41 am In New Car Warranties  


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