Comment by AlexandrB
> The reason is consumer demand. People weren't buying them.
I think this over-simplifies things. Strict milage standards force a set of compromises on ICE car design that make them both shittier and more expensive[1]. Why would anyone buy such a product when they can get an SUV instead?
[1] Some examples: turbochargers, CVTs, start/stop systems. All of these increase both the cost and complexity of building as well as repairing the car. And with higher complexity comes higher chances for something to fail as well so reliability suffers.
> Why would anyone buy such a product when they can get an SUV instead?
Isn't this just a circular way of admitting that people actually wanted SUVs?
This doesn't explain why the used car market is full of very cheap cars like the Honda Fit for much less than a new SUV.
> [1] Some examples: turbochargers,
Have to disagree. These are a great way to downsize the engine and maintain the same torque output. Yes it's more parts, but modern OEM turbochargers are very reliable. If you can reduce the number of cylinders from 6 to 4 or 3, that's a net win in moving parts, consumables, and repair costs.