US sees gap between trends in car sales and regulatory demands

Detroit

CAR industry executives see nothing but blue skies in the US market, especially compared with troubled Western European economies or slumping emerging markets.

There is just one, increasingly vexing problem: The vehicles that American consumers will pay a premium to own are not the fuel-sipping small cars or electricity-powered models that they have been lavishing capital on to meet government emissions regulations. Instead, what is selling as petrol prices fall are big trucks, SUVs and high-performance luxury cars.