Too Many New Small Cars?

The Detroit News ran an interesting story today about the glut of new small car offerings being released or on the horizon. One analyst they interviewed said that even with high gas prices, the U.S. market would not be able to support all these different models.

Ford will have the new Fiesta this summer. Chevy will have the Aveo and Spark in the next two years. Chrysler will have the Fiat 500 by the end of 2010. And that doesn’t even take into account the small cars already sold by Nissan, Honda, Toyota, Hyundai and Suzuki.

What do you think? Is there enough room for all the players, or will Americans still buy midsize sedans and crossovers?

Check out our poll below and let us know what you think.

Comments

well gas is already nearing $3.00 in NWFla...what's it gonna b at spring break time? bring on the small cars!

Another example of how US automobile industries keep falling into the same bad routine (not just automakers here):
(1) too late;
(2) take the easy way out.
What most people who are concerned about mileage/env/etc. aren't the size of the vehicle, but the cost/efficiency/cleanliness of the engines in different sizes of vehicles. At least that's how I see it. For example, Fusion/Altima/Camry Hybrids are mid/full-size vehicles with extra efficient/clean engines, and they do sell good at that price range...if only money can be spend so that hybrid models can sell like "regular" model (with no hybrid surcharge price), they'll be flying off the dealers lot like hotcakes...
OTOH, vehicles like SUV hybrids do NOT have the cleanliness. People who care 'bou env/fuel prices/etc. will most likely not be interested in a 20 mpg vehicle in the 1st place...see I say here vehicle, not SUV. But if some manufacturers come up with a 30+, or even 40+ with the new Prius type engine, mpg combined SUV/minivan, that will change the story...
US people like big vehicles. Big 3 are now trying to force people to change their habits by pumping in small vehicles. Wrong move. Germans and Asians manufacturers have already won that battle and grab most, if not all, small car sales. Big 3 should really spend R&D to make sure that their new engines are clean and are getting extra high mileage...and MOST IMPORTANTLY, cheap to maintain!
Cheap to maintain is v. important 'coz the current di engines have numerous problems with them (ask the Germans) in terms of daily usage and are very expensive to fix. Japan has pretty much given up hope on that after trying many years (both Honda and Nissan - the VQ neo-DI, not sure 'bou Toyota). It's too early to say if the DI engines from big 3 won't run into the same problem, since none of those are being offered to the public yet. Remember, Ford & GM are offering their DI engines on small (and very likely cheap) vehicles, so the cost to maintain and repair those DI engines must be low for both the consumers and manufacturers too!
US people (most) will never like small cars because of our current culture and taxation system - small vehicles have always been associated with cheap, and cheap only. Only recently has it been associated with environment benefits to a minority of people in NY, CA, etc. This is not the case for Europe and Asia, where vehicles are associated with most practicality...
To conclude, it's the engine (cost, mileage and how clean) that matters, not the size of the vehicle.

I would rather buy an old Omni than drop 20 large for one of these plastic computers on wheels.Cant wait til these things start showing up at the bodyshops.Any minor accident might pay for 16 Omnis.

Market moved from Big Truck based SUV's to Small Car based CUV's, the next step is to go from mid-size sedans to smaller hatchbacks which could offer the same utility with somewhat lesser passenger space.

Gas prices will continue to rise as the Chinese are selling more and more vehicles.

I believe GM could introduce Vibe as a Chevy model. It has as much cargo space as full size sedan like Crown Vic.

Choice is a good thing. Also, if some of the razor thin categories do not pan out they will be one generation and done products. Like it or not small is coming to stay in the United States.

I say that as a G8 GT owner who is enjoying the last gasps of muscle car nostalgia.

Amuro Ray for know-it-all of the year!

Except on both coasts, it appears American drivers are leaving the small cars on the dealer lots and buying large crew-cab trucks and SUV/Crossover vehicles. In the 'fly-over' states people travel with families and their 'stuff' over long distances, at highway speeds. They may stop at a convenience store every once in a while for gasoline, snacks, and a restroom break. They tow boats, campers, and trailers on week-ends. It's a lifestyle issue.

Sure, when gas gets to $4.00 a gallon there are some that panic, like last time, and run to the Toyota lot and pay way over list for a Prius. But, most will just live with it and continue to drive their land yachts.

The automotive manufacturers are just now catching-up to the last gas crises. Too late boys, all those small vehicles are going to occupy space on the back of dealer lots for a while.

LOL...Omni? come on. The Omni helped build Chrysler's bad reputation. Poor design and low quality are not the basis for a successful small car.

It was quite the opposite Mike.

I helped save Chrysler the first time. The dealer's (Dododge vs. Chrysler/Plymouth)where too busy fighting over conflicting "A" and "B" body dirivitive models and giving up whole slices of the market to the Japanese. Not that their Mitsibushi models were not any good, it was that they brought in too few and they were all higher end models.

I agree bring back the omni, the patents should have run out on that VW 51MPG engine they were using. I had a 024 Miser model when gas got up to 2 dollars a gallon for the first time and I never got below 45MPG.

They (Fiat) should also be shipping in the newly approved by the EPA turbo 1.4 by the plane loads to put in Caliber and PT cruisers immediately. If they can not make a bell housing to match and a plug for the computer import the whole transaxle and computers. The dealers need it imedately. The best they have now is just under 30MPG in the real world.

Style
Jan 15, 2010 1:34:20 PM

Amuro Ray for know-it-all of the year!
-----------------------------
Yep, he sure knows what he's talking 'bou. I just skip right past anything he posts.

Omni GLH, 2.2 Turbo 5 speed, beat 302 Rustangs and got 30+ mpg. But because it wasnt luxury car quality its garbage. People wonder why cars have gotten so expsensive and large, because people think some 10k econo box needs interior quality of a 70k BMW or else its worthless garbage.

As Mulally said it's the demographics that are driving small car sales - young people and baby boomers. And why not - good gas mileage and only pay around 16k. If it's just you or you and your spouse...who needs anything larger. Every manufacturer has to have one to be competitive and have a complete line-up. Amuro is right about one thing - Americans are not practical.

Look at Scion... once daddy stopped making payments for his spoiled college kid, nobody cares about them anymore.

Small cars are great, yet I'm not sure that they will attract repeat customers. Once everyone has had a chance to own a small car, I think the charm will fade. I bought a Yaris sedan after owning a Corolla and Tacoma. While I love the Yaris, my next car will be bigger. I'm glad for the increased choices, because that will make the offerings more competitive. Yet it also drives up the price. It doesn't cost that much more to get a Corolla or Focus or Mazda3. Don't buy small.

Amuro Ray, there is a SUV that gets 30+ MPG combined and it was done using a Prius type hybrid system. The EPA rates the Ford Escape two wheel drive at 32 (34 city, 31 highway) and the four wheel drive at 29 (30 city, 27 highway) MPG. I hope Ford will offer their C-Max (Mazda 5 copy) as a plug in hybrid.

It seems most compact cars get as good if not better MPG compared to subcompact and smaller cars. Unless you need to park on the street in a crowded city or these smaller cars cost much less I don't see many being sold here in suburban / megapolis USA.

I drive a Hyundai Accent 3-door. Not only do I love it for its fuel economy but its tiny size is a plus even here in the suburbs. The turning radius amazes me time after time. Erikkson makes an exccellent point. I think people are so spoiled that they think an econobox needs to be outfitted like a Bentley. My car is simple. It's comfortable. It's fuel efficient. It doesn't need a lot of repairs. A good number of us could be quite content in "smaller" if we'd just be more open to it. Bigger's not inherently "bad" but smaller isn't as "bad" as some make it out to be.

I'll remind everyone that the Omni/Horizon came out in 1978, but by the end of 1979, Chrysler still had to go begging for government loans. That was saving Chrysler? Let's not forget the first MY got a Not Acceptable rating from CR. Or that they were recalled 8 times the 1st year and throughout their entire production rarely got even an Average on reliability. Even the Allpar site admits that crashworthiness sucked (and notes that most sold were Horizons and not Omnis anyway) and that the cars rust and had tons of TSB's issued. It wasn't junk because it wasn't a luxury car; it was junk because...well, it was junk. But if anyone can find one of the few left still running that hasn't been snapped up for ice racing, please buy all you care to.

Trying being 6'6" and driving one of those sardine cans. I'll stick to my G body even though I pay $1.15/Liter. That's over $4/Gallon for you Americans.

Love such small mini cars:)