At the LA Auto Show, Toyota unveiled its new Yaris subcompact to the U.S. market for the first time. (It’s been available in Canada and other parts of the world for years.) Later this month, the new Honda Fit subcompact goes on sale here as well. Finally, Nissan’s releasing their Versa by year’s end. And GM will bring the new AVeo for sale around the same time.
I have mixed feelings about all these small cars. On the one hand, I see the practicality: small for our crowded streets and highways; great for gas mileage. And they make a lot of sense here in SoCal and other parts of the nation where the vast majority of drivers, on average, are driving either solo or one passenger at most. I, for example, can count on one hand the number of times I’ve had more than one passenger in my car.
What’s my issue with these compacts? Timing. Despite what the press has stated, Americans have not given up on their SUVs. The plethora of new models, from the Buick Enclave to the new GMC Yukon, show that Americans love big and powerful.
Americans have also gotten bigger as well with over sixty percent considered clinically obese. Yeah, I’ve sat in the Yaris and Fit and, yes, I fit. But I’m more height than waist: I can imagine folks who have lots of both trying to get into these things.
So why the sudden increase in small cars? Do Toyota, who’s leading the charge, really think that ’small is beautiful’? I don’t believe so. I think what’s really happening is marketshare. Toyota wants to makes sure it’s available in every segment, from the subcompact to the largest truck (did you see the size of the upcoming Tundra?) for the discerning buyer. This is not new: GM does it with all its various brands (e.g., Chevrolet for the masses, Pontiac for those who like sport-looking, GMC for true work trucks, etc.) Toyota’s building on the success of its reputation as reliable transportation and its hybrid Prius.
I think it’s a sound strategy. But it has cracks, namely American psyche as I outlined above. Another is the ready availability of used vehicles in the U.S., many of which offer compacts or small vehicles that undercut a new Yaris or Fit. The Mazda3, considered by many as the premium compact car without the rep, can be had used for less than $15,000 or considerably less than a brand new Fit. And the 3’s engine’s provide considerably more power with only a slight loss in fuel economy. I don’t see most Americans easily taken in by even Toyota’s rep.
I could be wrong. The Japanese automakers caught Detroit off guard with their quality cars back in the Seventies and Eighties and, later, with their hybrids. Is Toyota and the rest reading their tea leaves right again? Or this time did they get a bad batch?









5 comments so far
And here I was planning to buy a Fit for my daughter in a couple years. Oh well - I guess my psyche will convince me to here a Mazda 3/Ford/Volvo S40. (Any idea where it’s even built?)
April 10th, 2006 at 8:24 pm
I think you’re probably right about marketshare, but what about overall fuel efficiency standards over the brand lineup. If I understand it correctly, the government enforces average fuel efficiency numbers across a companies full line of cars and trucks. It would stand to reason that companies would introduce smaller and fuel efficient cars to balance out the bigger, thirstier models (like the Yaris vs. Tundra)as the government tightens its regulations on the USA fossil fuel dependency. On the European end, you don’t see BMW bring the 1-series or Mercedes bringing the Smart. But I guess Audi brought the A3, but they already had the Golf here anyways.
April 12th, 2006 at 9:59 pm
Who care what the import companies are doing, we all need to consentrate more on buying American cars and trucks, yes; I know it’s a hard thing for you unAmerican people who think that the imoprt cars are built better and last longer and run better.
If you’d just give our car companies a chance, you might discover that your wrong, I am not planning to buy a Fit or any other import car, I plan to keep my dollars flowing through the USA, because I’m an American.
April 13th, 2006 at 4:00 pm
Hi! Zodingi here. I work for instablogs.com and found your post interesting so have reposted it in my blog. I believe Americans are into more luxurious lifestyle that is why microcars still find it difficult to fit in. In India, smaller ones are selling better. Guess it comes down to the affordability factor.
April 14th, 2006 at 1:14 pm
I’ll still be buying the Fit. Love Honda and wish the Civic never got so big. I say Yay to the small vehicles. And I like to think there’s a little social responsibility in some of the thinking. Something american car makers don’t give a hoot about.
April 17th, 2006 at 10:02 pm
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