Rise of the Small Car: Sales up Nearly 50% in 2006 to 290,000

[Ming]

Associated Press
Small Cars Growing in Competition
KEN THOMAS
01.05.07



Tiny and affordable, subcompact vehicles have come a long way from their "econobox" past.

Sales of seven vehicles in the category were up nearly 50 percent in 2006, to more than 290,000 units, according to figures released by Autodata Inc. It represents only a small slice of the U.S. car market, but analysts said the new models and $3 a gallon gas prices last summer created some buzz.

"There was so much activity in those segments in the last few years - almost everything is new," said Rebecca Lindland, an auto analyst at Global Insight, an economic research and consulting company.

Subcompacts have made strides in recent years, following a less-than-stellar launch of the Toyota Echo a few years ago. The new models range in price from about $10,000 to $16,000 and come with designs that make the vehicle feel roomier and have safety improvements.

The vehicles typically present safety challenges when struck by larger vehicles. But many of the new subcompacts offer standard side air bags and several have received solid ratings in crash tests by the government and the insurance industry.

"What's fascinating is that while the vehicles are smaller, they're so much better, so much safer," said Jim Sanfilippo, a senior industry analyst for the Bloomfield Hills, Mich.-based Automotive Marketing Consultants Inc.

What they lack in size, the vehicles overcome in technology, perks craved by young drivers. Several provide jacks for iPods and other MP3 players and powerful stereo systems. The Versa, for example, offers the Bluetooth hands-free phone system while the Aveo has options such as heated outside mirrors and controls for the stereo system on the steering wheel.

Full Article / Continued: http://www.forbes.com/feeds/ap/2007/...ap3302801.html

GMI Flashback (2005): Do "Kei" Cars have a Place in a $3.00+ per Gallon America?

[tgagneguam]

I suppose people can debate the merits of the Aveo (I actually think the new version is a pretty good attempt at a compact car by the General), but I'm pleased that it represents the rare occasion in which GM looked globally to bring a product that viewed from a single market perspective would most likely have failed as a business perspective. If GM were to do similar things with other classes of vehicles-compact pickups come quickly to mind-the Company more easily would be able to justify investing appropriate financial and engineering resources to make class-leading product. Zeta could be justified very easily in a similar fashion, as could a well-rounded Cadillac lineup. How great would it be to have a choice of coupes/convertibles/sedans/wagons in nearly every segment in which Cadillac competes? Again, if Cadillac only looks to the US, GM fans will find themselves having to be content with a sedan version only of the CTS, STS, and DTS. And greater success with elude the Wreath & Crest division.

Learn from your successes, GM.

[BlueMontreal]

Don't know if it's a good thing. See, a small car is, by nature, a city car. I live in the city (place call Quartier Latin) and instead of using a small car, i walk, bike, or use public transit. Is the raise of small cars a sign that city dwellers are going to use more cars ?

Maybe part of the rise is the growing in size of most cars. The current civic is bigger than the Accord of the early '90. Yesterday night, a saw a women trying to parallel park her brand new Camry and she had lot of trouble because it's a big car and there was little place to park.

On a personal note, I like driving small car, except for the long hightway trips. A small, light and agile car is more fun IMO than a Impala-size thing (I had to rent a Impala for a week).

[IROCNROL1]

I don't have a problem with small cars, but I heard oil dropped to under $55.00 a barrel. A lot of people seem to live for the moment. Will sales weaken?

[PocoToro]

I read some place recently that the Saudi government has stated that they want American gas to stay at or below $2.50 a Gallon. This was in response to the "threat" of alternative fulls
(non petroleum).

If we get used to stable $2.50 ish gas we will be back in to big cars and trucks

[plane]

I'll second what tgagneguam stated.
Kudos to Ming for apt observations.

Just look at the success of the Opel Corsa.

Done correctly, with significant improvements in engine technology and safety, the Aveo could be the best selling vehicle worldwide.

[brianjkeller]

Here is another point to consider. In 2005 how many small cars were there? I am not that familier with kia/hyundai/suzuki etc. offerings in this segment since I would never buy a car that small (I don't feel safe in my girlfriends parents corolla, let alone something smaller), but I doubt that small cars from those brands sold in any quantity. The only volume brand with a small car in 2005 was Chevy. It only makes sense that if three more volume brands have high profile introductions in 2006 there will be a bump in the segments sales. I am sure that this year there will be a large % increase in crosovers since GM and Ford have entered the market with high profile products. My point being that there would be a large increase in sales in any segment that was underdeveloped, and suddenly recieved in infusion of good vehicles. When the charger and camaro are released I garauntee that there will be at least a 50% increase in the muscle car segments sales.

[Stéphane Dumas]

Originally Posted by BlueMontreal

Don't know if it's a good thing. See, a small car is, by nature, a city car. I live in the city (place call Quartier Latin) and instead of using a small car, i walk, bike, or use public transit. Is the raise of small cars a sign that city dwellers are going to use more cars ?

Maybe part of the rise is the growing in size of most cars. The current civic is bigger than the Accord of the early '90. Yesterday night, a saw a women trying to parallel park her brand new Camry and she had lot of trouble because it's a big car and there was little place to park.

On a personal note, I like driving small car, except for the long hightway trips. A small, light and agile car is more fun IMO than a Impala-size thing (I had to rent a Impala for a week).

thanks for the observation BlueMontreal I remember these 1990-93 Accord (there still a couple of them on the road, more then the 1994-97 gen), A long while ago I saw it parked once in a parking lot side-by-side to a Chevy Celebrity and a G-body Olds Cutlass 4-soor sedan it was almost big in lenght as the Celebrity and the Cutlass. I begin to ponder if around the year 2025-2035, the Accord could be big as the Chevelle/1977-96 Caprice or even the 1971-76 full-size Caprice/Impala?

I don't have too much trouble for parking a current full-size car, what had helped me was my dad teached me some driving lessons with his 1980 Pontiac Parisienne

[mkaresh]

The 2003 Mazda Protege5 I've been driving for the past three years weighs about 2,800 pounds. That's as much as GM's midsize A-bodies weighed back in the 1980s.

So, small isn't nearly as small as it used to be, at least not in terms of weight. Even the Fit and such weigh 2,500+ pounds.

Curb weights back in 1983:
Honda Civic: 1835
Honda Accord: 2150
Chevy Cavalier: 2443 (considered a porker at the time)
Chevy Celebrity: 2796
Chevy Caprice: 3663 (just a bit more than an Aura)

[Ed753]

Originally Posted by mkaresh

The 2003 Mazda Protege5 I've been driving for the past three years weighs about 2,800 pounds. That's as much as GM's midsize A-bodies weighed back in the 1980s.

So, small isn't nearly as small as it used to be, at least not in terms of weight. Even the Fit and such weigh 2,500+ pounds.

Curb weights back in 1983:
Honda Civic: 1835
Honda Accord: 2150
Chevy Cavalier: 2443 (considered a porker at the time)
Chevy Celebrity: 2796
Chevy Caprice: 3663 (just a bit more than an Aura)

Cars have continued to grow the last 20+ years, look at a couple of these cars from the early 80's: F-150, RWD Sunbird/Monza, even the 1st Saturn, pull that truck next to a current F-150, and these cars vs. a Cobalt "more roomy inside" they are just plain bigger.

I was talking to an Auto Industry guy about 22 months ago, the first time gas shot over $2.00/gallon he said it had to go over $3.00 before the car vs. truck trend would change, I concurred, I said I had been driving a truck for years, and actually use it for towing/hauling and I was thinking about buying a car, so the "soccer mom" with here 12 mpg Yukon XL or Expedition hauling 6 bags of groceries had to be even more serious than me. ........... I was right.

You don't have to buy a ECHO or Prius, if you have a big SUV, going to a big car or CUV is going to cut your gas bill almost in half.

[motorman]

with gasoline under $2.50 a gallon it is not even up to what it should be allowing for inflation and the fact that even large cars get 2X the MPG that cars got 20 years ago means that you drive father for less money than 20 years ago. people who rush out to buy these small cars do not do it because they can not afford the gasoline because the cost of the new car will take years to amortize out the savings in fuel costs,they are just panic buyers with money to spend.

[BusyBody]

I think smaller cars are a bit of a trend, brought on by higher gas prices. Owners with families will realize that they are generally less comfortable and spacious, and will go back to larger vehicles. Its all cyclical.

[stevecmh]

no real surprise

gas prices

and small cars actually becoming nice cars with loads of features...

its not surprise they are selling more

[t-rex]

I still get a kick at Americans thinking $3 per gallon is outrageous, when in many parts of the country, they don't bat an eye paying $750k for some tacky glue-and-vinyl McMansion, or spending $7k on a friggin' plasma TV. $7k would put 3 years worth of gas in my car.

[VivienM]

Originally Posted by BusyBody

I think smaller cars are a bit of a trend, brought on by smaller gas prices. Owners with families will realize that they are generally less comfortable and spacious, and will go back to larger vehicles. Its all cyclical.

But it seems like this small car trend is driven by people WITHOUT families...

Young naive socialistic-leaning types who want to be environmentally-friendly or something, but refuse to surrender their liberty and dignity and use public transit, perhaps?

The other thing is that for a younger buyer, if you want a new car, these things are basically all that many can afford. Of course, I'd buy a nice used W body with a 3800 instead of a brand new thing like this, but I guess that puts me in the minority