Customers Increasingly Shying Away From Small Cars

Trouble is brewing on the horizon for the U.S. automotive industry as it prepares for tougher fuel economy standards calling for the industry's fleet of new vehicles to average 35.5 miles per gallon by 2016.
The Obama administration announced the new standards Sept. 15 against the backdrop of plummeting sales for small fuel-efficient cars that already are on the market.
According to new sales figures, the "lower small car" or subcompact segment suffered a 15 percent drop in the sales year to date through last month, while the "upper small car" or compact car segment is off 28.5 percent. The small specialty car segment is off 15 percent.
By make, for example, Toyota Yaris sales are off 41 percent year to date, Honda Fit sales are off 8.2 percent, and Chevy Aveo sales are off 30.6 percent.
Used car buyers also are showing less interest in smaller cars. Kelley Blue Book officials say residual values for small cars have plummeted while they have gone up considerably for large cars and sport utility vehicles.

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wins555 - 10/7/2009 1:00:17 AM

+4 Boost

When gas prices spike again, small cars will be in demand again.

tango - 10/7/2009 1:08:54 AM

+4 Boost

This is what you call a disingenuous statement: "In a study by AutoPacific, a California-based industry research firm, small car buyers were unhappy with their vehicles." What exactly is being said? Are they implying that ALL small-car owners are unhappy? Or are they saying that 2 small car-owners were unhappy? Not a credible report at all. I believ sales of these cars in particular are slowing down because frankly, they are quite dull and some are quite long in the tooth. The Yaris has poor fit-and-finish and the Aveo, for all its freshening up, is still an old design. When the likes of the Ford Fiesta, Mazda 2, and hopefully a few FIAT derived models like the 500 and the MiTo, hit the streets within the next few years there will be things to jump around about.

Joe_Limon - 10/7/2009 1:18:15 AM

+1 Boost

or maybe it's the c4c slowdown which has already been posted numerous times on this website. And unhappy makes sense... you are taking people who have traditionally driven ford explorers and got them to buy compact cars. Of course there will be a lot of buyers remorse going on.

Chaordic1 - 10/7/2009 1:26:38 AM

+4 Boost

Yes, but... The Toyota Yaris and Chevrolet Aveo are nasty little pieces of shit. Even with good gas mileage, they're horrible things to drive. I don't know what the problem with Honda Fit is, but the new model was something of a disappointment compared to the 2008 model.

Willis - 10/7/2009 6:08:32 PM

-1 Boost

Yep! That's us Americans! We want big, overweight, oversized and overpowered cars and we expect good fuel economy too!