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Saturday, November 8, 2008

Is the SUV going the way of the dinosaur?

CNET's Executive Editor, Charles Cooper, celebrated the high cost of gasoline because it has caused us to rethink our Hummer loving ways. There's some truth to his argument, as recent surges in gas prices have coincided with plunging SUV sales. Americans have substantially changed their car choices and driving habits, arguably for the better.

Crude oil and gasoline have been dropping as the economy slows. As US automakers introduce drastic discounts on their SUV's, will America return to her heavy metal ways? Time will tell.

Let's hope the public continues to demand more fuel efficient vehicles, and automakers start listening. As more people now look at the MPG before the horsepower, I think that the trend towards smaller cars will continue for the balance of this decade.

But if recent history is an indication, this current recession will eventually end with job growth, rising incomes, larger families, and cheap gasoline. All of these ingredients could lead to the return of minivans and SUVs, as it did in the Reagan and Clinton years.

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