Thursday, March 30, 2006

Moving from BIG to small?

Towards the beginning of the semester, one day in class, we discussed CAFE standards for cars. Incase you don’t remember, CAFE standards required automobile manufacturers to make cars that have a certain mileage per gallon on average. We also discussed that to meet these standards a company might have to make smaller and lighter cars. I found an article about smaller cars, but they are not being made because of new standards but because of the high gas prices. These car companies are trying to appeal to the public with these smaller, more fuel efficient cars. The status quo in America right now is for everything to be BIG, including our vehicles. With the current prices and the future predicted prices of gasoline, more and more small cars will be produced with the possibility of establishing a larger part in the automobile market. In the article it states that we might see gas prices of $3 or more in May or June and that they could stay at that high price. The increase in gas prices means that there is likely to be a bigger demand for these smaller cars. If you are currently looking to buy a car, you might just keep this in mind.

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