
Ford's Mustang and Focus have taken larger shares of the small car and sports car market. This is because both models are some of the most efficient models available.Americans are purchasing small cars in order to save money on fuel costs, and there are many more fans of smaller vehicles.
This is not like the traditional American car market that has been characterized by the domination of large market shares of gas guzzling models like SUVS, Hummers, pick-up trucks, and others. Economists suggest that Americans are purchasing these models due to lower confidence that gas prices will stay low. The gas price increases of 2007 and 2008 scared many Americans into selling their larger gas guzzling vehicles in exchange for more fuel efficient models.
It was during this period that gas prices began to decrease, however the American consumer was still not convinced that large vehicles were worth the purchase and maintenance cost. As a result, some large vehicle brands were discontinued like Hummer, whose sales numbers dropped after the gas price increases of 2008.
Small cars will compete with other models such as hybrids and electric vehicle models in terms of fuel efficient vehicle purchases. Small cars are a popular alternative at the moment because the cost of hybrid and electric models is much greater than for small vehicles. In the future, the cost for producing hybrid and electric models will decrease and we may see more purchases of these models over small cars.
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