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Small Cars Making a Big Splash in North America

It's been a while since the sub-compact efficient vehicle. And these cars are
car market has garnered such attention in fuel-efficient. The new Honda Fit for
example,
North America. Our friends in Europe gets an estimated 33 miles per gallon in
have always known the virtues of small the city, 38 mpg on the highway.But these
cars. are no one-show ponies. Beyond fuel
But here in North America, SUV's have efficiency they offer respectable
dominated parking lots at the local Pier performance. The Toyota Yaris has 106
1 for horsepower which may not sound like
more than a decade. However as current much, but tipping the scales at only
gas prices inch forward and with future 2315 lbs, it has a power-to-weight ratio
prices looking uncertain (and by close
uncertain I mean they're certainly going to that of the 220 horsepower Hummer H3.
to be And these cars can carry just about
higher than today) more people are anything. With the rear seats up, the
buying small, fuel-efficient cars. We've Honda Fit can swallow 21.3 cubic feet of
seen a gear.
lot of activity in the segment recently. A Ford Crown Victoria by comparison can
Toyota has introduced the Yaris, Hyundai hold 20.6 cubic feet worth of cargo in
has the
significantly revised the Accent, Kia trunk.The domestics haven't invested
has updated the Rio, Honda has just much in this class recently, if ever. The
introduced Chevrolet
the Fit, and Nissan will introduce the Aveo is essentially a re-badged Daewoo
Versa in May of this year. And let's not and doesn't offer the level of refinement
forget as
Scion with the xA and xB.Having a car in the others. The Ford Focus is larger and
the sub-compact market makes sense for a more expensive, as is the new for '06
variety of reasons. First, Dodge Caliber. But with the uncertainty
it introduces new, young buyers to the of gas prices and growing competition in
brand. If their experience is good the segment, GM, Ford, and
they'll stick DaimlerChrysler would be wise to offer
with the brand as they grow up and move competitive
to a larger vehicle. Toyota, Honda, offering in this segment and introduce
Hyundai, Kia, Nissan, Volkswagen, Mazda first time buyers to their respective
and others all got their start in the brands.
sub- For most manufacturers, having
compact car market. Secondly, it competitive sub-compact cars has grown
provides a safety net during economic the
downturns. business and created brand loyalty,
If gas prices rise unexpectedly, the something the folks in Detroit have been
knee-jerk reaction is to get a small, trying
more fuel- to do for a while now.




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