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http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg It is hard to make decent money on small cars unless you have a long history of making and selling them, as do the Japanese. (http://www.msnbc.msn.com/id/32569655/ns/business-businessweekcom/)

http://www.cleanmpg.com/photos/data/501/Pete_Trepp_with_his_2009_Mini_E.jpgDavid Welch - MSNBC (http://www.msnbc.msn.com) - Aug 30, 2009

Americans are still not moving on from the 1990's - is a Focus "small?" --Ed.

If the wildly successful Cash for Clunkers program proved anything, it's that with the right kind of financial incentive Americans will buy small, fuel-efficient cars. Armed with rebates of up to $4,500 from the federal government, consumers snapped up cars such as the Honda Civic and Ford Focus. They did pretty much the same thing last summer when gasoline prices in the U.S. roared past four bucks a gallon.

And what happens when high gas prices or government handouts go away? Americans buy what they want. And it's usually not compact cars but powerful family sedans and sport-utility vehicles. That presents a problem for automakers. Over the next 18 months, the industry is bringing to market nine all-new small cars and subcompacts. Now the clunker program is over, and gasoline, currently hovering at $2.62 a gallon nationally, is expected to stay below $3 for the foreseeable future. So carmakers, even traditionally strong ones like Honda and Toyota, could be forced to dangle discounts before buyers. That, of course, would hammer per-car profits, especially for the Detroit Three. ... http://www.msnbc.msn.com/id/32569655/ns/business-businessweekcom/

It looks like Americans have not yet worked out of the bloated FSP mentality..

Since when has a Focus become "small?" The Camry must be small too.

To be blunt - some think all cars are small - period.

This is a mentality that has been acquired the past 20 years.

More therpy needed.

I'm still trying to figure this one out.
My Prius isn't any smaller inside than my first Volvo 240.
In fact the Prius has more room for the driver than my Volvo 960.

I'm still trying to figure this one out.
My Prius isn't any smaller inside than my first Volvo 240.
In fact the Prius has more room for the driver than my Volvo 960.You have the same problem I do - you are trying to figure out irrational people.

I guess it just doesn't make sense to me. Fuel Efficiency, desings with lots of space, sporty suspensions and good engines in cars that are light, agile and strongly built... Why wouldn't you want a 'small' car like a focus or a Fiesta?

I'm very happy with my "small" Saturn SL1, and my next purchase will be either a Volkswagon rabbit/golf, or probably a ford Fiesta.

Small cars just make sense, and despite the public view, are more safe than any big SUV or land yacht on the road.

Raising the tax on gasoline would help convince Americans to buy more fuel efficient cars. Since the government is mandating more fuel efficient cars, it is obligated to help the auto makers by doing what it needs to do to force Americans to purchase these fuel efficient cars. Higher tax on gasoline is one way to do it. Hefty incentives/disincentives similar to cash-for-clunkers is another way: big rebates for fuel efficient cars, big gas guzzler taxes on gas hogs.

Harry

The problem with raising the gasoline tax is if you think 10% unemployment is bad now how would you like 15%. The more money you take out of a persons paycheck in energy taxes is money they can't spend else where.

The problem with raising the gasoline tax is if you think 10% unemployment is bad now how would you like 15%. The more money you take out of a persons paycheck in energy taxes is money they can't spend else where.

That sounds reasonable in a theoretical way. But if those tax dollars were put right back into road and bridge work, which is what should be done, then you create jobs with that tax money. And better roads and bridges creates increased economic activity.

Harry

Raising the tax on gasoline would help convince Americans to buy more fuel efficient cars. Since the government is mandating more fuel efficient cars, it is obligated to help the auto makers by doing what it needs to do to force Americans to purchase these fuel efficient cars. Higher tax on gasoline is one way to do it. Hefty incentives/disincentives similar to cash-for-clunkers is another way: big rebates for fuel efficient cars, big gas guzzler taxes on gas hogs.

Harry

Agreed. We need at least another $1 added to the federal gas tax.

nf

The problem with raising the gasoline tax is if you think 10% unemployment is bad now how would you like 15%. The more money you take out of a persons paycheck in energy taxes is money they can't spend else where.

...or they could drive less.

Increase the gas tax by $1.00
Have a bar code installed next to the fuel filler for any car that achieves a minimum of 25MPG city.
Have the pump read the bar code and adjust the pump price to deduct $1.00 per gallon.
That way, the FSP drivers pay to drive them n both higher taxes and higher consumption. The roads and bridge repair fund gets a much needed injection of cash, compliments of the people who just HAVE to drive their big SUV's, and driving a frugal car is rewarded. Obviously the MPG number can be whatever makes sense, but i wouldn;t think anything under 25 would make much sense.

My old proposal - raise the pump prices while lowering the income taxes....truckers get an exemption.

I'd do both, raise the gas tax and put hefty rebates on fuel efficient cars, and punishing gas guzzler taxes on the hulks. Wealthy people who want to oversize their rides can help people of lesser means buy new fuel-efficient cars.

Harry