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August 21, 2008

European Dream: Will the Land of $8-per-Gallon Gas Foretell our Future?

My bride and I recently returned from our honeymoon in France. While there, we sipped champagne, choked down garlic-butter-laden snails and poured a significant share of our travel budget into the tank of our diesel-powered subcompact rental car.

At each fuel stop, the numbers on the LED readout zipped by like a Las Vegas slot machine offloading its jackpot. Only, in this case, we got to play the role of banker.

Do the math, at your peril. One liter of diesel was running in the neighborhood of 1.5 Euros. At the current unfavorable exchange rate, that translates into $2.25. There’s 3.75 liters per gallon. So, in American terms, that’s $8.43 to cover 30something miles of pavement—or roughly 28-30 cents [edit] per mile.

Shocking? Yes. A glimpse of our future? Perhaps. I couldn’t help but wonder: is it only a matter of time until the vehicles on our U.S. Interstates resemble those touring the French autoroutes (which exact a heavy user’s toll as well, by the way)? In this parallel universe, a Camry would appear almost limo-like. Imagine a fleet of Yaris and Corollas, with tiny iQs (Toyota’s possible answer to the Smart Car) darting in and out of traffic. Full-size SUVs? Few and far between. V8-powered pickup trucks? Forget about it. Minivans? I don’t think so.

That’s not to say it’s all gloom and doom. The French (as well as, I assume, most other European Union citizens) have made the transition and don’t seem to be unduly suffering. They work to live rather than the other way around. They luxuriate over a meal, or even a mere baguette. They get on with their lives in ways that don’t always include getting behind the wheel.

Will America follow a similar path? Is the EU’s present the USA’s future? If so, allow me to calm your fears: the world will continue to turn, the human race will continue to prosper, and life will still be worth living.

I hope…

Vive le petite voiture!

- Dan Miller, Corporate Communications

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You wrote, "Will America follow a similar path?" The short answer is OF COURSE we Americans will follow this path. Fuel prices have little to do with free market supply and demand; but everything to do with national and international politics and manipulated prices. So the sooner that all vehicle manufacturers bring their tiny city cars to the US, like Toyota's iQ and Aygo, the better off we Americans will be. But don't believe me. Do your own research. You're online right now, so you have every tool you need to learn the truth of what is happening in the US and the world. Oh yes, life will still go on, but if our controllers get their way, we'll be living in the USA in a fascist police state. Visit prisonplanet.com or infowars.com to start learning the truth. And remember: THE ANSWER TO 1984 IS 1776!

Yikes! $8.50 a gallon is a lot. I'm in Aruba right now and gas runs about $6 a gallon here. The U.S. enjoys fuel prices lower than a lot of places, and there is definitely something to be said for the fact that people in France and Aruba are just fine with these higher prices.

However, France has great public transportation systems, and things are pretty close together. Same goes for Aruba. In the US, everything is bigger. We need inexpensive gas simply because we drive a lot farther. We have to.

The math was VERY perilous! Wouldn't that be about $0.28 per mile, not $3.50 per mile? Its still shocking to us Americans, but not quite as shocking as paying $875 in gas to drive 250 miles round trip to go camping this weekend. (your math!)

Personally, I think that higher gas prices will spark new and exciting changes in the US, and in the world. The limited availability of fossil fuels was going to lead to this anyway, might as well be now!

How are you doing your math?!!

$8.43/gallon, ~30 miles/gallon = maybe $.28 to $.30/mile.

Where did $3.50/mile come from?!

That said, I would *love* to see Toyota introduce a small, light, manual transmission diesel-direct-injection hybrid. Should post real world economy numbers around 4liters/100 km (or 50-60mpg) and still be "fun" to drive.

err... LA voiture, not le voiture, I'm afraid Mr Miller.

Wow that is some really bad math.
8.43 $pg / 30 mpg = 0.281 $/mile
I would say $3.50/mile is no where near roughly correct.

Yikes! Thanks, folks, for catching our math error. I've sheepishly made the correction.

- RoadMaster

@Don: it isn't just small and efficient cars that we need; we need cars that run on alternative fuel, that run on electricity preferably sourced from renewable and sustainable sources.... whichever way you do your math, Peak Oil is a reality and alternatives have to be sought and adopted.

too much wine.......
mpg = $.28

most subcompact diesels average 40 mpg

but yes we need the Toyota diesels here

I understand your pain at the pump. What about these new cars you've mentioned, the IQ what is that? I have seen the prius and toyota hybrids (THey sell out quickly) But I have never heard of the newer models. Also diesel is more costly than un leaded. How is a diesel running car going to save me money on gas?

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