fuel efficient cars

General Motors reported its highest quarterly profit in more than a decade, helped by fuel-efficient cars and smaller sport utility vehicles that were in demand as gas prices marched higher.

GM's results follow strong earnings reports at crosstown rivals Ford and Chrysler.

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The automaker said Tuesday that net income rose to about $2.5 billion, up from $2 billion in the same quarter last year and its best first-quarter performance since 1998.

Ford sold plenty of F-series pickup trucks and Explorer SUVs. But unlike in the past, when big gas-guzzlers were cash cows for American automakers, it's Ford's smaller, fuel-efficient cars that are driving its earnings.

The Toyota Corolla sedan is the most popular car among consumers buying new vehicles under the government's "cash for clunkers" program.

It gives drivers up to $4,500 to trade in gas guzzlers for more fuel efficient cars. Initially it looked like the Ford Focus was the big winner, but the Corolla pulled ahead.

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Lots of “clunking” going on this morning at the Donk, but it’s the hot topic and since this criticism comes from a Dem I thought it worthy of pointing out some opposition from my side of the fence.

The government's so-called "cash for clunkers" program goes into effect Friday. People who trade in their gas guzzlers for more fuel-efficient cars can get a government subsidy — even if they trade in old pickups for ones that get just 2 miles per gallon more.

Which means the program could provide an unexpected boost to the beleaguered Hummer brand. Its H3T pickup gets 16 mpg.

Chrysler's plan to be sold to Italian carmaker Fiat is back on course. The Supreme Court on Tuesday rejected claims from a group of creditors.

Meanwhile, the House has passed the "cash for clunkers" bill. It's a measure aimed at boosting sales of fuel-efficient cars and trucks.

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Tax credits aimed at encouraging Japanese drivers to buy fuel efficient cars seem to be working nicely. Nissan reports sales for May rose 30 percent compared to the same month last year.

Nissan's domestic rivals, Honda and Toyota, also have reported sharp increases in sales.

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