Issue date: 5/5/08 Section: News

Media Credit: Brian M. Seay / Daily Vidette Staff Higher gas prices have led to a demand for smaller cars.

Rising gas prices have caused people around the world to alter their daily lives in any way possible to save a bit of money. For many Americans, this means replacing their car with a more economical model.

Demand for smaller cars and crossover models has skyrocketed in the past few years while the demand for previously popular cars, such as SUVs and trucks, has sharply declined.

This effect has even been felt in Bloomington-Normal according to Ryan Gremore, general manager of O'Brien Mitsubishi of Normal.

"At least 50 percent of the customers we have seen lately have been looking for small cars or crossovers," Gremore said. "Gas prices and stress on the economy, I believe, are the biggest cause of the extremely high demand for these cars. But because of the demand, it has made these cars cost much more than normal, while the price of SUVs, trucks and larger cars has gone down."

The Associated Press reports the sale of SUVs in the last quarter down 28 percent while, simultaneously, subcompact cars sales have risen 32 percent.

These numbers are expected to continue this pattern, making even more significant changes in the car industry.

This trend has been particularly harsh on U.S. car companies, who have had a hard time competing with the smaller, more fuel-efficient foreign cars. The traditional power of domestic vehicles is no longer in demand and automakers are having a hard time competing.

One strategy many Detroit automakers have employed is building more crossover vehicles. These are the more popular styled SUVs built on more fuel-efficient chassis.

Unfortunately for many carmakers, the change has not been swift in coming. For instance, Chrysler reported that 74 percent of their sales in the last year within the U.S. were trucks and SUVs.

At ISU, students are also seeking other methods of transportation in order to save at the gas pump. Matt Smith, a junior political science major, expects to change his routine because of high gas prices.

"Next year instead of driving around campus I will probably get a bike, " Smith said. "With gas at the prices it is now I simply can't keep paying."

"A bike would allow me freedom from the pump and some exercise, too," Smith continued.

While other Americans may not have the luxury of choosing gas-free transportation, many are choosing more compact cars with smaller engines.

The demand for smaller engines is hurting companies bottom-lines as well.

On the market, a V-8 engine when bundled with other luxury items can demand $8,000 more than a six-cylinder. By contrast, buyers see a discount of around $4,000 when going from a six-cylinder to a four-cylinder.

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