It seems hard to differntiate between chicken and the egg here. Do consumers really prefer big vehicles outright? Or do they prefer them based on the marketing of those vehicles as 'safer' or 'capable' or whatever? We know margins are higher on larger cars, so there is an incentive even in non-CAFE areas.
Part of it feels like an arms race played out on the road as well. I finally had to buy a new[er] car after my 2001 Volvo wagon died. Modern cars are massive, heavy, and have shit visibility. They also have surprisingly similar or even smaller interior volumes compared to similar exterior sozed cars of 15+ years ago. But let me tell you, test driving even like a modern RAV4 (not a huge car by modern standards) made me feel like a prince on the road compared to my low ride wagon. Didnt feel like every other car on the road could run me over without noticing either.
Seems like cars will just keep growing til they hit the limit of roads, parking lots, and garages?