Drivers Downsize As Gas Prices Soar

(CBS)  Headed into the holiday weekend, Cheryl Valleau traded in her gas-guzzling SUV for a smaller so-called "crossover" vehicle: part SUV, part midsized car.

Her reason?

"The price of fuel. … It's that simple."

Call it "trickle down fuel-o-nomics."

As gas prices steadily go up, says Tom Libby of J.D. Power & Associates, "owners of big vehicles are moving to midsize and owners of midsize are moving to smaller. ... It's a gradual long term trend."

It's a trend all right. Just follow the fuel prices. CBS News national correspondent Byron Pitts reports.

In May of 2004, the average cost of gasoline was $2.02 a gallon. Today its $3.22. That means on average consumers are spending an extra $63 a month on gas.

As gas prices have gone up, America's appetite for big vehicles has gone down.

Since 2004, the sale of large SUVs has dropped nearly 17 percent, going from 71,040 sold in April 2004 to 59,297 last month. But for compact cars it's just the opposite: an increase of 12 percent.

The most telling number: those fuel efficient hybrid vehicles, the ones that run on a combination of gasoline and electricity, those sales jumped 300 percent, from 6,832 in April of 2004 to 27,349 last month.

"Gas prices are ridiculous," says Valleau.

Cheryl Valleau is not alone. A new survey by the Consumer Federation of America shows 93 percent of Americans are concerned about the future price of gas and heating oil, and 80 percent support requiring auto companies to increase fuel efficiency.

From the gas pump to the grocery store, we all feel it.

Have you priced milk lately? The cost of milk has gone up an average 20 cents a gallon this year due in part to higher energy and feed costs.

Lorraine Merrill is a third generation dairy farmer in New Hampshire.

She says that if gas prices keep going up, "with the high cost of energy and feed, we would be out of business."

So this Holiday weekend, as travelers get away, there's no escaping the pain at the pump.

[anothernwmom]

Problem here is that I live in a northern area where snow blizzards, drifts, ice abounds and rural gravel roads are part of my daily life. When we see a small sedan travelling these roads, we roll our eyes and say "Ah a city fool. He or she will learn." I'd love to have lower prices again -- heck, getting to the gas station is a long drive. But no one is talking about the number of lives that will be lost, the increase in totalled vehicles if we change to these tin-foil sedans or cross-overs. We need strong, truck-like vehicles that are more economical -- or get the prices down, please.

[anothernwmom]

Problem here is that I live in a northern area where snow blizzards, drifts, ice abounds and rural gravel roads are part of my daily life. When we see a small sedan travelling these roads, we roll our eyes and say "Ah a city fool. He or she will learn." I'd love to have lower prices again -- heck, getting to the gas station is a long drive. But no one is talking about the number of lives that will be lost, the increase in totalled vehicles if we change to these tin-foil sedans or cross-overs. We need strong, truck-like vehicles that are more economical -- or get the prices down, please.

[bm6005]

I agree with tool mangler altho I wont ride a rice burner. I have an '82 Harley FXR (Big one) and I get 50 mpg city/hwy (Colorado). On a long cruise with my wife we avg 58 mpg hwy. America, get you a$$ out of your pickup, quit dragging your kids all over town and we can thumb our noses at the ragheads and oil companies. If everyone who has an MC started using it the ragheads could drink their oil. And yes while working I commuted by MC everyday that I could. So I got wet twice a summer, big deal!

[S. Houston]

Sorry for so many comments ...

It just occurred to me that that the management of the Detroit3 really BELIEVE they are doing a good job on fuel economy because they only look at each others' North American offerings ... ALL EQUALLY POOR ... nope ... EQUALLY BAD !

Their European divisions have reasonable offering today with AT LEAST 60% BETTER MPG1

Study these two sights and you will see what I mean.
http://www.fueleconomy.gov/feg/byMPG.htm
http://www.vcacarfueldata.org.uk/search/

[S. Houston]

Detroit3 "CLAIMS" higher mpg but their 2007 "best 19 fuel economy vehiches" achieve an average of 25.9 mpg(US) combined city/highway using 2008 EPA methodology.

The 2008 Escape, Mariner, and Mazda Tribute Hybrid 2WD are rated about 32 mpg(US) combined average .... 6 mpg better than the current best "domestic" autos (excludes Honda, Hyundai, Kia, Naissan, andToyota) whether LARGE OR SMALL!

Why even consider bothering with Detroit for fuel economy? THEY DON'T DON'T HAVE IT ... AND ... APPARENTLY ... THEY DON'T WANT IT ... BASED ON THEIR ACTIONS and LAW SUITS !

[S. Houston]

Currently, FORD has 5 vehicles that are rated above 52 mpg(US) combined average. They also have the Moneo Estate (May 2007) that is rated for 49 mpg(US) highway and the 8/9 passenger Transit Tourneo SWB Bus (FWD) 2006 Model Year is rated about 35 mpg(US) highway. The Tourneo Connect (probably considered an SUV) is rated in the range of 45 mpg(US) highway.

Vauxhall (GM/Opel) has about 25 vehicles rated between 45-50 mpg(US) average city/highway and 19 rated over 50 mpg(US) average city/highway. In fact, the Corsa, MY2007 5 Door Hatchback 1.3CDTi (75PS) gets about 62 mpg(US) highway at 119 g/km CO2.

ALL in Europe ! ! ! Http://www.vcacarfueldata.org.uk/search

IF you are tired of big gas bills and no choice in ... REAL ... HIGH MPG VEHICLES ... tell your elected people in DC !

For an easy way to contact your elected Congressional officials see http://www.drivecongress.com/ "Take Action" or call 866 / 200-6262

Or you may also use http://www.congress.org/congressorg/home/

Congress could/should IMMEDIATELY WAIVE ALL IMPORT RESTRICTIONS AND TARIFFS on ALL vehicles that do get 44 mpg or better, CO2 less than 140 g/km, and meet Euro Step IV (or Step V) Emissions and Safety standards(or equivalent); EFFECTIVE IMMEDIATELY for a period of 36 months (OR 300,000 units of each model that satisfy the criteria).

"44 mpg by 2010 ... WAIVE IMPORT RESTRICTIONS ... IF ... IT is the ONLY WAY!"

My view for what it is worth ...

[hypnotoad72]

The real world is simple: Europe pays much more in taxes for their gas. The United States doesn't.

It's fun to note, China subsidizes its gas so its people don't die at the pump. (Source: "What does Gasoline Cost in Other Countries?", msnbc)

Now, the chap with the knowledge of the cost of $6.16 gas in Ireland, he clearly knows better than everyone else: Where do the gas taxes get put in Ireland? Roads? Peoples' health care? Simply to discourage use of gas? Come on, sock it to us, tell us the 'why' of the situation. Let us feel their pain - or give us reason to envy.

And owners of hybrids - I applaud your smugness, but when will the trucking industry use more fuel efficient methods? :)

How much does gas cost in developing countries?

I loathe SUVs too, but many of the responses to this article are empty petty boasting or amusing claims of "We have it worse" by showing only superficial values, and not bothering to explain why their costs are higher. We all know the world isn't nearly as simplistic, nor will it ever be. Surely we, as humans, are capable of intelligent discourse?

[toolmangler-2009]

My little Honda gets 55 mpg. It has everything except a roof and doors but it will carry two at 125 mph. Neat huh?

[michellem99-2009]

Gentle postee, As a poor older person who is in the real world who live on fixed income as most do. Higher gas prices hit us in the pocket book.
We live in our means. The people who have to choose. Does the family get the basics or does the car get gas. Some go in to debt just to tank up and that hurt them in the long run.
Us who don't drive well it hits our pocket books too. The basics and every thing that is sold. The joy ride is over.In the real world drivers and car builders not must be mindful of the car that will save gas.

[spoly13]

My little Corolla gets 37 MPG which is why I bought it. My son has a Prius which gets over 50 MPG. Can't understand why any smart person would drive a gas guzzler...doesn't make sense. The American car manufacturers had the technology years ago to produce smaller, fuel efficient cars but there was no demand as the Americans love to show off in their huge, silly Sherman tanks. Everything will change now..GM is just about bankrupt. The Japanese had the savvy to figure things out over 30 years ago and continue to dominate the market..good for them!!