Cheap Gas, Low Demand For Hybrids, B-Cars

According to Ward's Auto, sales of fuel efficient vehicles (cars with 30mpg+) are falling, as customers move back to their mid-size cars and crossovers. Toyota's Prius is selling well, but the hybrid Camry and Honda Civic Hybrid are declining. Small gasoline cars such as the Yaris (down 38%), Honda Fit (down 20%), and Smart ForTwo (down 63%) are not doing well.

Unless Obama can find a way to ramp up the price of gasoline soon, the near term sales of the many new B-cars are not going to be pretty, and fleet fuel economy improvements are going to be small.

Let's face it, Americans don't want little cars. They want cheap gas and large cars. I can't wait for the public reaction when the 36mpg CAFE regulations force people to look at B-cars, or pay a premium for larger vehicles.