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Conservation and sacrifice, however, dont sell cars on their own. Automobiles that appear hair shirt or underpowered like the previous generation of econoboxes dont inspire the kind of yearnings that prompt consumers to buy, particularly in good economic times. The auto industry has respondedin the U.S., but particularly in Asian and European marketsby manufacturing an entry-level segment of cars that is more appealing, better looking, and safer than in the past. Instead of promoting their economy, the automotive manufacturers have stressed these cars quality, comfort, and power to meet any highway situation. Manufacturers have also realized that good design doesnt necessarily cost more, and these cars are a testament to this. Frequently these vehicles are marketed to younger consumers who may be naturally more adventuresome and will accept new technologies and types of styling more readily.
Traditionally the small car has never been popular in the United States, with perhaps the short exception of the period soon after the oil embargo of the mid-seventies. This is primarily because gasoline prices have remained extremely low in America, even recently selling for less than the price of bottled water in some areas. Compared with most other industrialized nations, where gasoline sells from $4 to $6 a gallon, there is very little incentive for austerity in the U.S. Not surprisingly, petroleum imports have actually risen to 10 million barrels a day, nearly double the level twenty years ago. At the same time, the average fuel efficiency for all automobiles in the U.S. has also decreased in recent years.
But all this may be about to change, as it runs contradictory to cultural and societal realities that may encourage the use of smaller cars. It is inconceivable that gasoline prices will remain as low as they are forever. Overcrowding in many American cities is a serious problem, and the American family is statistically getting smaller. In the last few decades it has become common for both adult members of the household to work, a fact that has transformed the dynamic of commuting to work and automotive use. Recent statistics show that on average most automobiles worldwide have only a 1.6 to 1.8 average passenger-occupancy rate. And because the distance of that commute is becoming longer, often from one suburb to another, the ordinary car is using more gasoline on a daily basis. These facts suggest that there should be a market in the U.S., as there already is in Europe, for second cars used primarily for travel to and from work (for example, DaimlerChryslers Smart Car).
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