BMW, Ford and VW announced the plan to boost sales of small cars that are fuel-efficient after the slump of consumer spending, which shows that improving gas powered cars will come before vehicles with alternative fuel.

Automakers in the U.S. are cutting emissions by steering away from SUVs and trucks and focusing on smaller cars, as major advances in other technology are being delayed because of the global financial crisis.  Just like European automakers, they are making the most of the combustion engine, for example improving turbochargers, to increase efficiency while continuing to burn fossil fuels.

Vehicle sales in the U.S. plummeted 27% last month, extending the slide in the industry to 11 months in a row, which is the longest in 17 years.  Tightening credit has discouraged buyers, as the U.S. and Europe shovel out money to help bail the banks out.  Meanwhile, the roads won’t be full of electric vehicles until huge investments have government support.

Carmakers are finding themselves in a position where they have to pay attention to the basics, selling gas-powered cars.  In the meantime, many motorists are hanging on to their current vehicles and purchasing an auto warranty to protect them from unnecessary repair costs.