Trends and Entertainment

The Recession Killed the Gas Guzzler

There was no mistaking the recession’s influence at the Detroit Auto Show earlier this month. Although the crowds have returned since last year’s somber affair, the cars themselves were a far cry from the gas-guzzling behemoths that once covered the floor of the massive convention space.

Yes, it appears change is afoot in the auto industry. Blame it on the recession, the high gas prices, or the growing eco-consciousness of society, but this year’s show featured an endless stream of hybrid, electric, and generally eco-friendly cars with lower price points than before the economic collapse.

Whether you’re looking at the new vehicles being designed, the drop in sales of expensive SUVs, or the rise in people choosing used cars over new, it’s hard not to notice the impact the recession has had on the auto industry and the vehicles we drive.

Looking past the bailout and into the future, here are five ways the recession has changed the auto industry and the cars we’re driving now:

Small cars are big. Forget the massive Escalades and Suburbans of yesteryear. This year’s 2010 Detroit Auto Show featured electric, hybrid, and other small cars that were designed with “frugality” in mind, like the Chevrolet Spark minicar and the Nissan Leaf—a definite indication of the way the post-recession car market is shaping up.

Auto dealers are pulling out all the stops. As Ivanka Trump noted in a recent tweet, car dealerships are offering major sales right now—possibly in the hopes of piggybacking on December’s increased auto sales and moving stagnant inventory off the lot before another collapse stalls car sales again.

More people want used cars. Remember when zero-down, zero-interest car loans were a dime a dozen? So do the car manufacturers, who had a much easier time selling their new cars when people could easily get the cash to buy them. With money tight, though, more buyers are opting for pre-owned vehicles these days than in year’s past.

SUVs just aren’t cool. Blame it on the recession or the spike in gas prices, but 2009 wasn’t a good year for SUV makers. Ford saw a 33.5 percent drop in sales of their popular Explorer series, while Toyota saw a 20 percent drop in sales of light trucks (with the exception of the compact Rav4 SUV). Even as the economy begins coming back to life, it appears the market for massively-sized SUVs still isn’t there, since consumers are reluctatnt to buy gas-hogging vehicles with the threat of rising fuel prices still lingering.

Fewer people own cars. Perhaps the biggest shift in the post-recession auto industry? Fewer people in the United States actually own a vehicle at this point than before the recession began, as the number of overall cars on America’s roadways decreased by 4 million last year—the first time such a drop has occurred since WWII.

Tags: Cars, Detroit, transportation