Relative Strength: Small Car Sales Boom Due To $4 Gasoline Prices Creating Sustainable Future For U.S. Economy

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It might not feel this way when you are pumping $4 gasoline but the path to a sustainable U.S. economy is in full swing from our car buyers aggressively shifting from gas guzzlers into more efficient cars and trucks.

The latest car buying numbers show these “winners:”

#1 Hybrid Cars with a 50% annual sales growth rate!

Very small cars (such as the Ford Fiesta and Honda Fit) grew at almost twice the rate of the overall market, 30 percent compared with 17 percent.”

The result is that “Fuel economy for vehicles sold in the year’s first three months rose to 22.7 mpg and came within a few hundredths of a point of the record set in the Cash-for-Clunkers-influenced third quarter of 2009.”

The sales losers were:

  • SUVs
  • Trucks
  • Cars built like trucks.

Relative strength is a financial concept for investing based upon momentum. The idea is to buy investments that are moving up in price the fastest and not buy investments that are moving up more slowly or falling in value.

The U.S. consumer is a master of the relative strength concept. Living in a free market has disciplined them to make this type of analysis and to act.

That is how the United States is implementing sustainability. The American consumer is analyzing the relative strength of the increasing price of buying less sustainable goods and services compared to buying the personal value created from buying more sustainable goods and services.

Efficiency is the hallmark of sustainability. The implementation path is design. In economics this is called a “substitution effect.” The result is the U.S. consumer embarking upon a new path of buying smarter, more efficient products and services.

Read this article profiling Lynn Swann, COO of Frog Design on how this design process is progressing.

And read this article profiling Dave D’Angelo, Senior Vice President of Staples on how the second largest Internet retailer is growing sales offering price competitive products designed to be more efficient and sustainable.

Bill Roth is the founder of Earth 2017, a website posting blogs and tweets on the emerging smart, healthy and green economy. His book, The Secret Green Sauce, profiles best practices of businesses making money going green.

About Bill Roth

Bill Roth is the founder of Earth 2017, author of The Secret Green Sauce and a nationally-followed contributor to Entrepreneur.com, Triple Pundit, The Green Economy Post and Media Post on best business practices emerging from the smart, healthy and green global economy. He coaches entrepreneurs, business and community leaders on how to grow revenues, profits and jobs by going smart and green.
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