Artificially low government-subsidized gas prices favor trucks and SUVs, and killed the Volt.
That’s a very simplistic way of looking at it and does not account for all factors in the US.
Are there what some people call subsidies given to the oil industry? Yes. Are subsidies given to a large amount of industries? Yes.
A large amount was given to the oil industry during the Obama administration. So it’s not just related to political parties.
There are several factors like the price of gas, easy credit, personal preferences and tax laws.
1. The US has always preferd larger vehicles and will for a long time. Our roads and areas to park were designed for larger vehicles unlike other counties that basically converted from much older roads that were designed for non motorized vehicles of transport. If you would rather have a smaller car then please get one. If you like larger vehicles please get one. The US is has and will be about personal preferences. We don’t have some arbitrary tax penalty assessed to vehicles over specific ICE displacement or vehicle weight like other countries.
2. We have cheap money credit rates that allows people to get more expensive vehicles like trucks, SUVs and CUVs. The US also has and has had a higher level disposable income compared to other most parts of the world.
3. Gas is cheap now. When gas is cheap people don’t care as much on the operating cost. Also personally cheap gas is not a bad thing. It helps keeps the cost of all goods down. The 70s and more recently 2008 is a good example of what happens when gas is to high. When it is to high people at lower incomes get hurt. For me $3 plus gas does not hurt me but does hurt the lower income households.
4. The US is no longer going to be subsidizing the VOLT and other GM cars with the reduction of the 7500 tax credit now that they are approaching the magic sales numbers. The reduction of the tax credit / government subsidy is probley one of the larger reasons the VOLT is going away. Personally I don’t think there should be any tax credits but if one is avaible to me I will take it as I will with any other tax advantage I can get.
5. Cash for clunkers. This was a program they had a large amount cars get scraped to subsidize the auto industry. The side effects caused the price of used cars to go up and reduce the overall inventory avaible to people. This made people choose new vehicles that would have normally been in the market for used only as the price between new and old were not that much for some. I always wonderd if the reduction in the amount of used cars caused some to get Trucks, SUVs and CUVs.