Cupidspunch asked:
Why, when Americans are facing the controversial and problematic issue of gas prices are car manufactures not bringing the small cars that they already produce and sale in other countries (namely European ones) to dealerships in the states? I am not saying to offer large numbers of these kinds of cars all at once in dealerships because that is unrealistic but should they not at least make them available to order in America?
Why, when Americans are facing the controversial and problematic issue of gas prices are car manufactures not bringing the small cars that they already produce and sale in other countries (namely European ones) to dealerships in the states? I am not saying to offer large numbers of these kinds of cars all at once in dealerships because that is unrealistic but should they not at least make them available to order in America?
Money.
Europeans are willing to pay a high price for a small, economical car. Americans will only pay a modest price for a small, economical car. Since the beginning of the 20th Century, Americans have ascribed greater prestige to larger cars. This isn’t purely a matter of consumer caprice. Larger cars are generally more comfortable, quieter, and safer. However, the small cars that Ford and GM profitably sell in Europe would have to be sold at a loss in America. The American car companies are unlikely to bring their European products over to the U.S. This is both because of American consumer tastes, and because the Japanese car manufacturers have learned how to profitably sell small, economical, high quality cars at moderate prices in the U.S. With Japanese competition keeping the prices of small cars down (and with Hyundai successfully underpricing the Japanese), it’s unlikely the American car companies will bring their European products here.