Micro-Cars are Coming

It's going to be interesting to see how new micro-cars affect the hybrid market.

There is the Toyota Yaris, the Honda Fit, the Nissan Versa, and the new Smart ForTwo from DaimlerChrysler. These vehicles are small in size and power but are agile, cute, and get outstanding gas mileage.

Many hybrid buyers are noticing that gas mileage doesn't quite live up to EPA estimates. This makes the higher price of hybrids harder to justify. However, the micro-cars, although lower in performance, have lower prices and achieve better gas mileage than most hybrids, such as the Toyota Camry Hybrid.

Micro-cars have been popular for many years in Europe's crowded cities where traffic is maddening and fuel prices are higher than in the U.S. It will be interesting to see how they catch on here.

I suspect that young drivers will adopt the new micros quickly, particularly those who live in large metro areas. I also believe the bloom will soon be off the hybrid rose as micros, alternative fuels, and alternative engine technologies begin to have an impact.

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