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Wall Street Journal's take on Yaris, other small cars

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Old Apr 17, 2006 | 01:42 AM
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Default Wall Street Journal's take on Yaris, other small cars

Since gasoline prices aren't likely to go down anytime soon, the coming abundance of small cars is good news...

Paul
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http://online.wsj.com/article_print/...704024343.html








"... now Ford and a host of other industry giants, including Toyota Motor Corp., DaimlerChrysler AG and General Motors Corp., are betting things are about to change. They're gearing up to introduce a host of small cars in the U.S., most priced around $15,000 or less. Meanwhile, a number of other Asian auto makers are joining the fray, importing small cars that have been big sellers overseas.

What's spurring these moves? A number of trends are coming together. There are growing numbers of people in the U.S. -- from young families to retirees -- who can't afford, or don't need, big cars. Cities are getting more congested, making large cars less practical. And, most important, energy prices have soared -- a fact highlighted last year when Hurricane Katrina sent gas prices to $3 a gallon.

"We expect the entry-level segment to have explosive growth over the next five years," says Brandon Ramirez, a manager of Hyundai Motor Co.'s North American sales unit in Fountain Valley, Calif. In particular, he says, high fuel costs are "highly correlated with entry-level car sales. ..."
Old Apr 17, 2006 | 03:14 AM
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didn't some report come out about that hurricane wiping out that area being bs and the oil companies just used it to jack up prices. instead of bringing the price back down they are just lining there pockets cause people really don't have say in the price. since we all pretty much need it.

toyota has been doing the small car thing long before gas prices went up way back with the tercel and paseo even. they seem to be the ones ahead of everyone else still. not to mention the fact they are working making more of there current cars hybrid cars.
Old Apr 17, 2006 | 04:19 PM
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^ Yup. That, and they've said they're going to have a hybrid option available on all cars by 2010 (or was it 2012?). Either way, it's a good step in the right direction. Mass production of hybrids should bring the price down, too.

Good to see more small car options on the horizon!
Old Apr 17, 2006 | 04:54 PM
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Originally Posted by dexter_5000
didn't some report come out about that hurricane wiping out that area being bs and the oil companies just used it to jack up prices. instead of bringing the price back down they are just lining there pockets cause people really don't have say in the price. since we all pretty much need it.
What is interesting is that right before the gas went up again (when it was ~$2.14 in my area) I heard on the news that there is an excess amount of oil that was being pumped. About 2 days after that story, the gas prices went up. I was guessing that since there was excess supply, the gas prices would drop to about $1.70.
Old Apr 17, 2006 | 08:15 PM
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I heard on the news that we have the highest supply of oil since 1998... yet gas prices continue to go up each day. The oil companies are crooked. People need to grow some ***** and boycott these criminals. The introduction of smaller, more efficient cars is a good start. People need to let go of their gas guzzling trucks and SUVs and defy Big Oil.
Old Apr 17, 2006 | 08:25 PM
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It's inevitable, gas is only going to go up.
It's only a matter of time before Americans are going to have to dig into thier pockets as deep as Europeans do.
So bring on the small cars and slow the production of SUVs.
Old Apr 19, 2006 | 08:05 PM
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Originally Posted by BSP_5c10n
I heard on the news that we have the highest supply of oil since 1998... yet gas prices continue to go up each day. The oil companies are crooked. People need to grow some ***** and boycott these criminals. The introduction of smaller, more efficient cars is a good start. People need to let go of their gas guzzling trucks and SUVs and defy Big Oil.
Are you going to lead the charge by boycotting gasoline? If so I applaud your efforts but its not lack of ***** holding everybody back, its that some people can't afford to boycott gas if they can't get to work.

High-priced gas is a complicated problem. And most of the money is made by the refineries; not at the pump. Retail margins are very slim on the sales of gasoline because the refineries jsut don't hand the fuel over to them. As a result the cost is passed on to you. Is it fair? heck no.

Why such a high price for gasoline? Transporting crude oil is costly during times of global threats (think Iraq, WMD, etc.) and natural disasters clamp the supply of fuel. Permitting new refineries is costly and time consuming..many investors don't feel its worth the effort to try to increase supply. The growing demand from Asia and India is real too and they're willing to pay for it. On top of that? The refineries know they can set their price.

Sorry for the rant, but its not all on the oil companies. Personally, I believe the best think to do is buy a great car like a Scion and do your wallet a favor. It makes me sick to see all these H2's, escalades and navigators on the road....driving unnecessarily large vehicles hurts everybody.
Old Apr 19, 2006 | 09:53 PM
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^^^ True! I just saw a brand new Siverado 2500...
Man I feel bad for that guy.
Old Apr 22, 2006 | 01:09 PM
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I have a Dodge 2500 (12-16mpg) for house jobs, boat towing, etc. I've always had a little car for the gas savings. With normal driving I can save enough to pay for the insurance and car (over time). The higher the gas prices, the faster I've paid the car off.
Four months ago I bought my Xb, and have loved it! Not only is it good on gas (30-36mpg), but it handles some pretty large cargo. I've been using the truck less and less! (12,500 miles on an 04). To bad the Xb can't tow 7000lbs
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