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Wednesday, 15 July 2009

Who Says We Want Wee Cars ?

Vehicle sale numbers for May 2009 are out. The Free Press crunched the provincial numbers to find that we're still out there buying: 4.8% more units than in April.

One item that didn't get a lot of play is what we are buying. According to StatsCan's (national) figures: truck sales - pickups, vans and SUVs - surpassed passenger car sales for only the fourth time in ten years.
Source: Statscan. Click for details.

Interesting, considering that smaller, more fuel efficient cars are supposedly what the car-companies-formerly-known-as-the-Big-Three are supposed to embrace to save themselves. From The Detroit News:

"General Motors Co. is reworking its future vehicle plans to include more small cars, including a new subcompact that will be built in Orion Township. And the need to develop small cars in a hurry was one of the primary factors that pushed Chrysler Group LLC into the arms of Italy's Fiat SpA."


6 comments:

Stimpson said...

Clearly, government must step in to create the conditions for fuel-efficient car sales. A "feebate" system would be a good start: Buy a gas guzzler and pay a big tax on it; buy a fuel-efficient vehicle and get a sizable rebate.

mrchristian said...

If you read the Detroit News article the story talks about new fuel efficiency standards coming into effect in the US that will push the sale of smaller cars. i am not sure how those standards jive with ours - if we will have to play catch-up.

Brent said...

Keep the government out of our car buying decisions. People will choose to buy smaller vehicles when it's the right choice for them.

Stimpson said...

My point, Brent, is the government can help make it the right choice for them.

cherenkov said...

Fees, rebates, efficiency standards ... none of that is needed. It's all distortionary, and the fees/rebates are particularly bad because somebody has to make arbitrary decisions about which cars are in and which are out.

If you are really serious about promoting fuel efficiency, the more efficient way to do it is to crank up gas taxes. Terribly unpopular, but that's the best way to do it because it doesn't take away personal choice.

Mr. Nobody said...

Tell you what, remove the PST and GST as an incentive and I'll buy a couple little fuel misers.