Chris Bryant: Small cars are being driven out of existence


Meanwhile, Peugeot SA’s Opel/Vauxhall has already announced that its Adam and Karl city cars face the ax.

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Car launches are 10-a-penny so it’s very rare that a particular model’s demise captures the world’s attention. The Volkswagen Beetle, the last of which rolled off the production line in Mexico this week, was no ordinary vehicle though.

The downfall of the “People’s Car,” an icon of post-war German prosperity as well as the 1960s counterculture, is all the more painful because of what’s replacing it. Bloomberg News reported this week that the Mexican plant is now gearing up to build’ wait for it’ a compact sports utility vehicle.

With all due respect to VW’s new SUV, I doubt it’s going to capture hearts the way the “Love Bug” did, not to mention the original tiny Fiat 500 or Britain’s Mini for that matter. Petite, fuel-efficient cars would seem to be an obvious solution for a warming planet and our increasingly crowded cities. Yet they’re fast becoming an endangered species in western markets. Consumers have voted with their wallets by buying SUVs and because they carry fatter profit margins, carmakers have been happy to oblige. VW’s famous entreaty to Beetle customers to “think small” hasn’t worked out.

Publisher: GoErie.com
Date: 7E15F9269E2CE66F2A488ABB04B5015E
Author: Chris Bryant Bloomberg
Twitter: @GoErie
Reference: Visit Source

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Chris Bryant: Small cars are being driven out of existence

Compact cars have always struggled to gain traction with Americans, though, and they’ve been overshadowed recently by the boom in trucks and SUVs, which account for almost 70 percent of the U.S. market. Cheap credit and leasing have made larger vehicles more affordable; the average purchase price of a new car has risen to an eye-watering $37,000. And low gas prices make these heavyweights less costly to run. In fairness, some compact SUVs are actually pretty fuel efficient, so even a big rise in pump prices might not reverse this trend.

In Europe, where small cars still account for about one-third of the market, there’s another (counter-intuitive) factor working against compact models: Tougher emissions standards. By 2021 carmakers must achieve average fleet emissions of 95g CO2/km. Targets for 2025 and 2030 are even more stringent.

Publisher: The Times
Date: 7E15F9269E2CE66F2A488ABB04B5015E
Author: Chris Bryant Bloomberg
Twitter: @bctimes
Reference: Visit Source

Analysis | Small Cars Are Being Driven Out of Existence

Analysis Interpretation of the news based on evidence, including data, as well as anticipating how events might unfold based on past events

The problem, car executives say, is that the high cost of electrification technology is difficult to combine with the economics of smaller, cheaper cars. Installing emissions-cutting kit in a compact car requires either a prohibitively high sticker price or the sacrifice of profit margins. Perversely, it can be cheaper for carmakers not to bother and just pay the regulatory fine.

From a profit’and regulatory compliance perspective, it’s certainly better for carmakers to sell lots of hybrid SUVs and high-performance sports cars. But is this better for the environment? That’s debatable.

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25 Celebrities Who Got Crazy Cars As Presents

Another celebrity, another supercar. There isn’t much that surprises fans of the rich and famous as they buy up the most exclusive, colorful and downright insane high performance cars. Where else will they put their millions, after all?

Exotic cars are about pleasure for some celebrities, while for others it’s about growing their collections. There are also those who buy and sell rare cars the way art investors deal in the paintings of Monet and Gauguin. While your average bank balance doesn’t really cut it for buying a new Lamborghini or Mercedes, celebrities gave access to some of the best sports cars on the market.


Publisher: HotCars
Date: 2018-12-25T14:12:26Z
Reference: Visit Source

Small Cars Are Out of Style Just as Gas Prices Start to Rise

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