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Winding Road

U.S. Subcompact Sales Going Through The Roof

Written By: Chris Paukert

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Subcompact sales in America are booming–in fact, they’re trending to heights not seen in more than a decade. In the first quarter of 2007, the segment is ahead an astounding 95.1-percent year-over-year, and they’re expected to account for more than 535,000 units this year.

So, is it escalating gas prices and concerns over environmental impact that have spurred the trend? Perhaps it’s more of a chicken-egg thing. The segment was essentially barren in North America for years, but with compelling new entrants from Toyota (Yaris), Honda (Fit), Nissan (Versa), and Suzuki (SX4), it’s arguably a case of “If you build it, they will come.”

There’s no sign that the trend will slow down, especially not with new competitors arriving in the marketplace all the time. Hyundai has its new Accent, Scion its xD, and domestic automakers are busily developing their own entrants to this blossoming segment, as well (for now, Chevrolet’s Aveo is the only American offering in subcompact sandbox).

Even still, the subcompact segment isn’t exactly thick with profits, and its overall numbers are still dwarfed by that of other segments. Hopefully manufacturers are finding ways to make these small cars profitable, as we’d like to see the segment remain robust for years to come.

+ SEMA.org: SUBCOMPACT SALES SOAR

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30 Comments

chuck goolsbee May 31st, 2007 2:43 PM Link

This should not shock anyone, except perhaps at the executive levels of GM & Ford.

I can envision a similar headline about cars with Diesel engines sometime in the future.

–chuck

The Stig May 31st, 2007 2:58 PM Link

Let me put my surprise face on

bil May 31st, 2007 3:51 PM Link

At $15K they are half of the average new car purchase price. Lets all buy two.

Don May 31st, 2007 4:11 PM Link

And here WE are with not a car to offer…pfft.

Jeb May 31st, 2007 4:13 PM Link

I think as much as anything, it’s the surprising increase in equipment level and quality in what America used to think of as the penalty-box class. I mean, the Fit Sport autobox comes with paddle shifters, and the SX4 has switchable AWD. You can’t really find those features in cars in the next class up.

John May 31st, 2007 5:07 PM Link

Don - who are you referring to as “we”?

ryan May 31st, 2007 6:17 PM Link

if anybody in detroit is scratching their heads, i’d like to know who they were. then, it’ll be easier to find those that should be fired for NOT seeing this coming.

Rory May 31st, 2007 9:16 PM Link

Oh you forgot to mention that the Aveo is not a GM car but a Daewoo!
I like my Corolla and my Dodge 3500 Diesel

Sean May 31st, 2007 10:17 PM Link

Buy your subcompact now because when the higher fatality rates for these vehicles make the news the Nanny State will start a-regulatin’. Soon you will have a $24K Yaris and an added fuel tax to help “pay for” the extra emergency services. It will be the enviro weenies vs. the safety weenies and the only looser will be the consumer. Watch California for the first salvo.

bil June 1st, 2007 9:49 AM Link

Sean,
The irony is that the Fit has more standard airbags than full size cars from Ford, GM and Chrysler. FYI the vehicle with the lowest fatality rate is the Honda Odyssey.

B June 1st, 2007 10:29 AM Link

Yes, bring more diesels (cars) to the US.

B June 1st, 2007 10:49 AM Link

Oh, and if you have more subcompacts on the road chances are fatality rates will drop because the huge, fatality-causing vehicles will be fewer in number (replaced with smaller cars).

ryan June 1st, 2007 12:11 PM Link

^^ agreed. and bil, airbags do their part, but they can’t compete against an Excursion driven by someone talking on their cellphone who has no idea you’re there.

but for me, i’ll still zip around in my focus, even with the terrible crash ratings. my wife and i can’t validate having a large car in the stable, both from a financial and personal standpoint.

bil June 1st, 2007 12:27 PM Link

Ryan,
Don’t worry about the Excursion; odds are they will roll over before they get to hit you. Like most Ford SUVs they don’t have strong enough roofs so the cell phone will become a permanent fixture for yet another proud Ford SUV owner. That is if they have their seatbelt on. If not, through the air they fly. We have proud Ford owners flying all over the place here in FLA. Something about flat roads and high speeds. We call Fords high-rollers. Because when the roll the owner usually fly’s high.

Don June 1st, 2007 5:31 PM Link

“We” is us.

Andy June 1st, 2007 5:42 PM Link

Don, I believe you are forgetting the Chevy Aveo. The Aveo was released long before the Fit, Versa, and Rabbit hit these shores. The Aveo still remains the most affordable of the sub-compact bunch. A reasonably equipped model can be had for $13,000. The Aveo’s prime weakness is its mileage, which lags behind the Honda Fit and Toyota Yaris. Nevertheless, the thousands saved from its low sticker price makes up for that. Ford’s Focus ZX3 has smaller dimensions than a Nissan Versa. It is offers fair mileage, a low price, and an excellent reputation for reliability.

Andy June 1st, 2007 5:43 PM Link

Sorry about that last sentence, but I think the idea was put across. The Aveo may be a Korean-made car, but it still has a Chevy badge.

larry June 1st, 2007 10:16 PM Link

Andy, you’re right. However, Chevy built that car on the cheap, with nary a concern for some safety built in. You “save” alright.

eAuto Mall » SEMA says subcompacts sales are flying high June 2nd, 2007 8:48 AM Link

[…] [Source: Sema via Winding Road] […]

SEMA says subcompacts sales are flying high at EbuyMark.com June 2nd, 2007 8:54 AM Link

[…] [Source: Sema via Winding Road] […]

Automotive Articles Magazine » Just another WordPress weblog » Blog Archive » SEMA says subcompacts sales are flying high June 2nd, 2007 9:25 AM Link

[…] [Source: Sema via Winding Road] […]

richard June 4th, 2007 1:56 PM Link

rory–you do know that gm own’s most of daewoo? as far as i’m concerned…. it’s gm. like subaru–it’s part of the team until they sell it off.

the pontiac lemans in the late 80s was a daewoo.

as long as gm needs small cars to compete with japanese & korean auto companies…. they’ll need daewoo & suzuki.

Steve K. June 5th, 2007 12:34 PM Link

Let’s see…….funeral expenses x3 + loss of income from severe depression + rest of life filled with sadness = way too much to put my Wife and Kids in a sardine can. I’ll stick with the midsize car for her to drive, the extra cost for gas and the peace of mind that they won’t be crushed by another driver in an SUV or some kid on a bicycle running into them more than outweighs the fuel savings.

Holden June 29th, 2007 1:14 AM Link

Let’s see… I’m guessing your wife and kids won’t FIT in the sardine can :-)

Fred June 30th, 2007 8:06 AM Link

Concerning orintial cars w/U.S. badges; Ford’s Festiva was a great little car. Mine with 170k miles still is. This is a Ford built by Kia using many Mazda parts. Unlike most econoboxes the Festiva is a comfortable driving car even for this arthritic 60 year old fat man. Ford’s designers would do well to revisit this design. There is ample head room, the seats are high enough and the upright hatchback provides more cargo area than many much larger cars.

Harry June 30th, 2007 10:06 AM Link

What goes around, comes around. I was in college in WV in 1973 and gas was about 59c per gallon. Everyone was concerned about the dwindling supply of oil and was conserving energy in everyway possible. The thermostat was set at 60 during winter time and speed limit was highly enforced at 55 MPH to “improve gas mileage”. I bought a 1971 VW for $1000 and got 30 MPG on average. It cost me less than $10 to get to Washington, DC. Why does it have to take more than 30 years and gas at $3 /gallon to revive the spirit of energy conservation? We have the technology, the experts, money, and lots of resources. What’s up??

Luis June 30th, 2007 11:30 AM Link

Let us be real. More that 52% of the vehicles that you come accross are SUVs and trucks, inckuding the big Hummers. The trend of SUV and Truck buyers have not slowed down significantly. We are in America and as Americans, our love for Big Cars have not stopped since the early 1900s. Call this a tradition or a big EGO, but that is the fact. This new generation will probably continue to embrace new technologies but the love for big Trucks and SUVs will continue.

Scott June 30th, 2007 2:35 PM Link

Who needs small imports? My wife’s ‘04 Impala consistantly gets 30+ mpg

jake July 1st, 2007 1:08 AM Link

Who needs small imports? My wife’s ‘04 Impala consistantly gets 30+ mpg

Bingo - We have a winner!

smokefreak2003 August 12th, 2007 8:34 PM Link

Jake, becuase real fuel efficiency enthusiaists like myself feel that 30MPG is not good enough anymore, remember one of the posters had a VW in the 1970’s that got 30MPG.

-Always Drive Foreign
Less Customers will Teach the Big-3
To make real cars again.

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