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Cars Blog

Economic crisis has small car sales making a U-turn

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December 29, 2008 12:16 pm
By Peter C. T. Elsworth

Sales of small cars have taken the wildest ride in the auto business this year -- first up, then down -- and the gyrations may not be finished, according to USA Today.

Though gas prices tumbled, some automakers are trying to juice sales of fuel-thrifty economy cars by slashing starting prices to less than $10,000.

Small-car sales doubled during the first half of the year as gas topped $4 a gallon. By the end of November, sales levels had tumbled 63% from the peak. Even with the drop, the segment is holding up better than others because overall vehicle sales are so weak. "It's surprising," says Ford Motor analyst George Pipas.


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