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US Auto Market Going Sane

By Kevin Spak,  Newser Staff

Posted May 4, 2009 12:50 PM CDT
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(Newser) – After years of big cars and even bigger sales numbers, forces are conspiring to turn the US auto market into something much more like its European counterparts, the LA Times reports. Fashion statement SUVs are giving way to more efficient, more reliable cars, analysts say, which people are expected to drive longer. After sales averaging 16.9 million a year since the millennium, under 10 million are expected to move this year. Even post-recession, some think they'll rebound only to about 14 million.

“You are starting to see signs that the US market is more rational,” says one Honda exec. Aging baby boomers soon won’t need extra cars for teenage drivers, and they’ll start trading in their big family cars. Tightening credit will prevent buyers from financing with home equity loans. And the new focus on reliable, long-lasting cars will depress future sales. But not everyone believes the change will last. One analyst says that as soon as the economy recovers, fashion buying will resume.

In this April 3, 2009 photo, prospective buyers look over a 2009 Solstice convertible in the Pontiac display at the Denver Auto Show in Denver.
In this April 3, 2009 photo, prospective buyers look over a 2009 Solstice convertible in the Pontiac display at the Denver Auto Show in Denver.   (AP Photo/David Zalubowski)
In this July 6, 2008 file photo, a long row of unsold H3s sit at a Hummer dealership in Castle Rock, Colo.
In this July 6, 2008 file photo, a long row of unsold H3s sit at a Hummer dealership in Castle Rock, Colo.   (AP Photo/David Zalubowski, file)
Unsold 2008 Passions sit at a Smart dealership in the south Denver suburb of Englewood, Colo., on Sunday, Sept. 14, 2008.
Unsold 2008 Passions sit at a Smart dealership in the south Denver suburb of Englewood, Colo., on Sunday, Sept. 14, 2008.   (AP Photo/David Zalubowski)
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COMMENTS
Showing 2 of 2 comments
Assassin
May 4, 2009 7:54 AM CDT
Who the Hell wants to be like those Damn Europeans anyway? All they are good at is starting World Wars & acting Arrogant to All other nations of the world. Remember - Europe is good at OLD & PAST & the way things USED to be - let them drive Deathmobiles!
serfinWI
May 4, 2009 7:33 AM CDT
Does Europe have the same safety standards as the US? Do these cars pass those off-center insurance tests? How does Consumer Reports rate these cars? They sure don't look very safe hitting a deer, much less another car. How do they do on northern midwestern winter roads? They look like a tuna can on wheels. Aren't highway death rates already on the rise because of these small cars? What would veep Biden tell his family to buy? Bet not one of these.

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