Small Cars are Popular again!
#1
07-18-2005, 04:53 PM
Small Cars are Popular again!
Mileage, safety make small cars big. How does 30 mpg for $9,995 sound?
Small is big again.
With gasoline prices hovering near record levels, automakers are preparing to introduce a range of small cars, most costing $14,000 or less. After years of pushing hulking SUVs, the industry is betting that fuel-efficient subcompacts are due for a comeback.
Traditionally, Americans' appetite for minicars -- which are even smaller than compact cars such as the Honda Civic -- has been slim amid concerns that they are too small and dangerous on highways crowded with SUVs and powerful sedans. But there are signs of growing consumer interest, not only because of the high mileage, but also because of significantly improved safety technology.
The Chevy Aveo, which was launched at the beginning of last year, has been a surprise hit for General Motors Corp. and ranks as the best-selling economy car in the United States. Through June, sales of the Korean-made car, which gets more than 30 miles per gallon and has a base price of $9,995, are up 66 percent from the year before, outpacing the Scion xA, the Kia Rio and the Hyundai Accent.
Overall, sales of minicars are expected to reach at least 410,000 vehicles a year by 2007, more than doubling from last year, according to CSM Worldwide of Farmington Hills, Mich., which counts a car as "mini" if it's less than about 14 feet in length. By contrast, a Ford Expedition SUV is more than 17 feet long. Sales of such large, gas-thirsty SUVs -- which fueled industry profits in recent years -- have since slowed considerably.
Now the major Japanese automakers, Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co., are looking to grab a piece of the action. As early as the spring, Toyota is likely to launch in the United States a version of a popular minicar sold in Japan as the Vitz, according to executives familiar with the plans. The snub-nosed Vitz, which was recently redesigned and has sort of an egg shape, is expected to replace the Echo, an aging model that has proven to be one of Toyota's biggest recent flops in the United States, in part because it came out in 1999 when gasoline cost about a dollar a gallon but also because of its stodgy styling.
Honda also is expected to roll out a minicar in the spring, most likely a version of its hatchback known as the Fit in Asia and the Jazz in Europe. At Nissan, one of the minicars being considered for the U.S. market next year is the Tiida, a minicar sold in Japan and China. The Tiida has a body shape that hints at the Nissan Murano, the SUV-car crossover vehicle.
Nissan's chief executive, Carlos Ghosn, said his company plans to add at least a couple of cars smaller than the Sentra over the next three years.
"Obviously, we are comforted in this strategy by the fact that gas prices are going up," he said.
In Japan, the vehicles typically sell for between 1.2 million yen to 1.5 million yen, or about $10,800 to $13,500. A Toyota Vitz with a three-cylinder engine is priced at 1.05 million yen. Most Japan-market minis go 16 to 20 kilometers on one liter of gasoline, which is roughly 38 to 47 miles per gallon, depending on models and engine sizes. The mileage would likely differ if measured under U.S. standards.
Ford Motor Co. and Chrysler Group of DaimlerChrysler AG also are considering launching minivehicles in the United States, but neither has concrete plans. Ford has shown over the past few years three minivehicle concepts, including the boxy van called SynUS.
A GM spokesman says the company doesn't have any plans to add additional minicars to its lineup in the wake of its Aveo success. The car is built in South Korea by GM and sold in major markets around the world. A redesign is already on the market in Asia, and is expected to arrive in the U.S. market soon.
Small cars such as these are becoming safer to drive amid recent technological innovations that are helping automakers overcome one of the biggest consumer reservations about driving minicars: safety. When it reaches the U.S. market, the Honda Fit will have side airbags and anti-lock brakes as standard equipment. The Aveo received a five-star crash rating by the National Highway Traffic Safety Administration. And the Toyota Vitz was designed to offset one of the basic problems that small cars traditionally have had in collisions -- namely, that a smaller vehicle is at risk of sliding underneath a bigger SUV or truck.
Economical microcars still make up only a small segment of automobiles in the United States, accounting for just 1 percent of total U.S. vehicle sales, according to CSM Worldwide. But automakers have been encouraged by the strong sales of BMW AG's Mini, despite it's comparatively high price of $17,500 for a base model, as well as the early success of Toyota's youth-oriented and budget-priced Scion brand. Last year, BMW sold 36,032 Minis, and Scion racked up 99,259 in vehicle sales in the United States across the three cars in that line.
New minicars from the Japanese Big Three also fill a significant gap in entry-level cars for those automakers -- a situation they created themselves over the years by scaling up their small-car entries such as the Honda Civic, the Nissan Sentra and the Toyota Corolla to meet customer demand for more room and comfort. Indeed, the Civic is now bigger than the Accord that Honda sold in the late 1970s. "That left a hole in the lower part of Honda's lineup," said Koichi Kondo, head of Honda's American sales unit in Torrance, Calif.
Other automakers are eyeing the entry-level market, too, given that the next generation of car buyers, now 10 to 24 years old, is expected to represent 40 percent of the U.S. market in 15 years, according to CSM Worldwide. Chevy marketing officials say that some 26 percent of Aveo buyers so far are first-time buyers.
INVASION OF THE MINICARS
A comparison of tiny cars on the market
KIA RIO
Price range: $10,735 to $13,265
Fuel economy: 25 to 32 miles per gallon
Pros: Small price, big warranty, peppy engine
Cons: So-so fuel economy for a minicar
HYUNDAI ACCENT
Price range: $10,544 to $12,194
Fuel economy: 27 to 35 mpg
Pros: Good warranty, standard side airbags
Cons: Buzzy engine.
CHEVY AVEO
Price range: $9,995 to $13,555
Fuel economy: 26 to 34 mpg
Pros: Low price, ample headroom, available MP3 player
Cons: Not much power, side airbags not available
SCION xA
Price range: $13,045 to $13,845
Fuel economy: 31 to 38 mpg
Pros: Long list of standards
Cons: Modest passing power with automatic transmission
TOYOTA ECHO
Price range: $10,995 to $12,325
Fuel economy: 33 to 39 mpg
Pros: Good gas mileage, speedy acceleration
Cons: Quirky styling might not be for everyone
SUZUKI AERIO
Price range: $13,994 to $18,394
Fuel economy: 25 to 31 mpg
Pros: Available as a sedan or wagon, optional all-wheel drive, solid crash test scores
Cons: Some relatively low-grade interior plastics
Source: Edmunds.com
---
By NORIHIKO SHIROUZU / The Wall Street Journal
07/17/2005
Small is big again.
With gasoline prices hovering near record levels, automakers are preparing to introduce a range of small cars, most costing $14,000 or less. After years of pushing hulking SUVs, the industry is betting that fuel-efficient subcompacts are due for a comeback.
Traditionally, Americans' appetite for minicars -- which are even smaller than compact cars such as the Honda Civic -- has been slim amid concerns that they are too small and dangerous on highways crowded with SUVs and powerful sedans. But there are signs of growing consumer interest, not only because of the high mileage, but also because of significantly improved safety technology.
The Chevy Aveo, which was launched at the beginning of last year, has been a surprise hit for General Motors Corp. and ranks as the best-selling economy car in the United States. Through June, sales of the Korean-made car, which gets more than 30 miles per gallon and has a base price of $9,995, are up 66 percent from the year before, outpacing the Scion xA, the Kia Rio and the Hyundai Accent.
Overall, sales of minicars are expected to reach at least 410,000 vehicles a year by 2007, more than doubling from last year, according to CSM Worldwide of Farmington Hills, Mich., which counts a car as "mini" if it's less than about 14 feet in length. By contrast, a Ford Expedition SUV is more than 17 feet long. Sales of such large, gas-thirsty SUVs -- which fueled industry profits in recent years -- have since slowed considerably.
Now the major Japanese automakers, Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co., are looking to grab a piece of the action. As early as the spring, Toyota is likely to launch in the United States a version of a popular minicar sold in Japan as the Vitz, according to executives familiar with the plans. The snub-nosed Vitz, which was recently redesigned and has sort of an egg shape, is expected to replace the Echo, an aging model that has proven to be one of Toyota's biggest recent flops in the United States, in part because it came out in 1999 when gasoline cost about a dollar a gallon but also because of its stodgy styling.
Honda also is expected to roll out a minicar in the spring, most likely a version of its hatchback known as the Fit in Asia and the Jazz in Europe. At Nissan, one of the minicars being considered for the U.S. market next year is the Tiida, a minicar sold in Japan and China. The Tiida has a body shape that hints at the Nissan Murano, the SUV-car crossover vehicle.
Nissan's chief executive, Carlos Ghosn, said his company plans to add at least a couple of cars smaller than the Sentra over the next three years.
"Obviously, we are comforted in this strategy by the fact that gas prices are going up," he said.
In Japan, the vehicles typically sell for between 1.2 million yen to 1.5 million yen, or about $10,800 to $13,500. A Toyota Vitz with a three-cylinder engine is priced at 1.05 million yen. Most Japan-market minis go 16 to 20 kilometers on one liter of gasoline, which is roughly 38 to 47 miles per gallon, depending on models and engine sizes. The mileage would likely differ if measured under U.S. standards.
Ford Motor Co. and Chrysler Group of DaimlerChrysler AG also are considering launching minivehicles in the United States, but neither has concrete plans. Ford has shown over the past few years three minivehicle concepts, including the boxy van called SynUS.
A GM spokesman says the company doesn't have any plans to add additional minicars to its lineup in the wake of its Aveo success. The car is built in South Korea by GM and sold in major markets around the world. A redesign is already on the market in Asia, and is expected to arrive in the U.S. market soon.
Small cars such as these are becoming safer to drive amid recent technological innovations that are helping automakers overcome one of the biggest consumer reservations about driving minicars: safety. When it reaches the U.S. market, the Honda Fit will have side airbags and anti-lock brakes as standard equipment. The Aveo received a five-star crash rating by the National Highway Traffic Safety Administration. And the Toyota Vitz was designed to offset one of the basic problems that small cars traditionally have had in collisions -- namely, that a smaller vehicle is at risk of sliding underneath a bigger SUV or truck.
Economical microcars still make up only a small segment of automobiles in the United States, accounting for just 1 percent of total U.S. vehicle sales, according to CSM Worldwide. But automakers have been encouraged by the strong sales of BMW AG's Mini, despite it's comparatively high price of $17,500 for a base model, as well as the early success of Toyota's youth-oriented and budget-priced Scion brand. Last year, BMW sold 36,032 Minis, and Scion racked up 99,259 in vehicle sales in the United States across the three cars in that line.
New minicars from the Japanese Big Three also fill a significant gap in entry-level cars for those automakers -- a situation they created themselves over the years by scaling up their small-car entries such as the Honda Civic, the Nissan Sentra and the Toyota Corolla to meet customer demand for more room and comfort. Indeed, the Civic is now bigger than the Accord that Honda sold in the late 1970s. "That left a hole in the lower part of Honda's lineup," said Koichi Kondo, head of Honda's American sales unit in Torrance, Calif.
Other automakers are eyeing the entry-level market, too, given that the next generation of car buyers, now 10 to 24 years old, is expected to represent 40 percent of the U.S. market in 15 years, according to CSM Worldwide. Chevy marketing officials say that some 26 percent of Aveo buyers so far are first-time buyers.
INVASION OF THE MINICARS
A comparison of tiny cars on the market
KIA RIO
Price range: $10,735 to $13,265
Fuel economy: 25 to 32 miles per gallon
Pros: Small price, big warranty, peppy engine
Cons: So-so fuel economy for a minicar
HYUNDAI ACCENT
Price range: $10,544 to $12,194
Fuel economy: 27 to 35 mpg
Pros: Good warranty, standard side airbags
Cons: Buzzy engine.
CHEVY AVEO
Price range: $9,995 to $13,555
Fuel economy: 26 to 34 mpg
Pros: Low price, ample headroom, available MP3 player
Cons: Not much power, side airbags not available
SCION xA
Price range: $13,045 to $13,845
Fuel economy: 31 to 38 mpg
Pros: Long list of standards
Cons: Modest passing power with automatic transmission
TOYOTA ECHO
Price range: $10,995 to $12,325
Fuel economy: 33 to 39 mpg
Pros: Good gas mileage, speedy acceleration
Cons: Quirky styling might not be for everyone
SUZUKI AERIO
Price range: $13,994 to $18,394
Fuel economy: 25 to 31 mpg
Pros: Available as a sedan or wagon, optional all-wheel drive, solid crash test scores
Cons: Some relatively low-grade interior plastics
Source: Edmunds.com
---
By NORIHIKO SHIROUZU / The Wall Street Journal
07/17/2005
Last edited by macG; 08-02-2005 at 08:08 AM.
#2
09-30-2005, 09:38 PM
Nissan Versa Competition for Fit/Jazz
Re: "Nissan's chief executive, Carlos Ghosn, said his company plans to add at least a couple of cars smaller than the Sentra over the next three years."
Nissan announced that the Versa will be coming to the USA in 2006. Details here: Nissan adds subcompact to its lineup - 09/28/05
My initial impression is that the Versa will be more popular among mainstream American buyers than the Fit/Jazz, as it is more powerful, more conservatively styled and familiar in design to other Nissan models.
Nissan announced that the Versa will be coming to the USA in 2006. Details here: Nissan adds subcompact to its lineup - 09/28/05
My initial impression is that the Versa will be more popular among mainstream American buyers than the Fit/Jazz, as it is more powerful, more conservatively styled and familiar in design to other Nissan models.
#3
10-01-2005, 01:34 AM
Originally Posted by jpmccormac
My initial impression is that the Versa will be more popular among mainstream American buyers than the Fit/Jazz, as it is more powerful, more conservatively styled and familiar in design to other Nissan models.
#4
10-21-2005, 05:25 PM
Originally Posted by Dojo
Mileage, safety make small cars big. How does 30 mpg for $9,995 sound?
Sounds stupid to me...
Personally I think cars in this segment *should* be getting 45+MPG 30MPG is horrible fuel economy... Heck, my beat up old '84 mercedes 300D gets 30MPG and it's a huge, 4700Lb, unaerodynamic, beast of a car.
#5
10-22-2005, 04:47 AM
Originally Posted by InSaNeBoY
Sounds stupid to me...
Personally I think cars in this segment *should* be getting 45+MPG 30MPG is horrible fuel economy... Heck, my beat up old '84 mercedes 300D gets 30MPG and it's a huge, 4700Lb, unaerodynamic, beast of a car.
Personally I think cars in this segment *should* be getting 45+MPG 30MPG is horrible fuel economy... Heck, my beat up old '84 mercedes 300D gets 30MPG and it's a huge, 4700Lb, unaerodynamic, beast of a car.
#6
10-27-2005, 11:08 AM
Interesting USA Today article
Little cars to roll with big mileage
James R. Healey
USA Today
October 25, 2005
Read the full article here
(NOTE: Article not quoted here due to Gannett's copyright restrictions)
I find the article interesting because it appears there is a major groundswell of interest in B-segment cars such as the Honda Fit, Toyota Yaris, and Nissan Versa. It should be noted that if you read the article in the print edition the caption next to picture of the the Honda Fit talking about the car said that it is still unknown what kind of engine Honda will offer on US-market Fits; it appears the L13A and L15A engines may not be the engines US-market Fits use.
This tells me a variant of the 1.3-liter SOHC i-VTEC engine from the 2006 Honda Civic Hybrid could be the engine we see in the USA.
James R. Healey
USA Today
October 25, 2005
Read the full article here
(NOTE: Article not quoted here due to Gannett's copyright restrictions)
I find the article interesting because it appears there is a major groundswell of interest in B-segment cars such as the Honda Fit, Toyota Yaris, and Nissan Versa. It should be noted that if you read the article in the print edition the caption next to picture of the the Honda Fit talking about the car said that it is still unknown what kind of engine Honda will offer on US-market Fits; it appears the L13A and L15A engines may not be the engines US-market Fits use.
This tells me a variant of the 1.3-liter SOHC i-VTEC engine from the 2006 Honda Civic Hybrid could be the engine we see in the USA.
#7
10-27-2005, 11:25 AM
MtViewGuy188,
You may have something there! The New 1.3L in the New Hybrid makes 110 hp equal to the 1.5L 110hp, but offers better economy than the 1.5L while not giving up any performance. Plus it will fit with no problems.
I guess we have to wait a little longer to see what happens, but it would explain why Honda has been so quiet about the NA version of the Fit.
You may have something there! The New 1.3L in the New Hybrid makes 110 hp equal to the 1.5L 110hp, but offers better economy than the 1.5L while not giving up any performance. Plus it will fit with no problems.
I guess we have to wait a little longer to see what happens, but it would explain why Honda has been so quiet about the NA version of the Fit.
Last edited by Dojo; 10-28-2005 at 10:18 AM.
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