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Small Car Market Will Look Radically Different by 2011

 

Everyone knows that the US automotive market is in an upheaval as customers shirk big trucks and SUVs for smaller cars and crossover vehicles. In the midst of this sea change, every automaker who sells cars in the US and Canada is in the process of transforming their model lines to bring an even greater number of fuel efficient vehicles our way.

By the time the calendar flips over to 2011, the model line ups for most manufacturers will have been radically changed. Please read on for a primer of what's to come:

General Motors – As the automaker with the most sales as well as the steepest losses, GM is scrambling to change its line up across its eight brands quickly. Expect the Hummer brand to be gone by the time 2011 rolls around, leaving GM with seven brands to work on. The biggest changes will be with its quintessentially American brand, Chevrolet, where the plug-in hybrid Volt will be on the scene, the 45 mpg Cruze will replace the Cobalt, and as yet unnamed Scion like vehicle will also be introduced. Expect some of these changes to spread to Buick, Pontiac, and Saturn.

Toyota – Who would have thought that Toyota would ever be so pummeled? No, the automaker isn't racking up multi-billion dollar losses, but their fleet is too top heavy with trucks and SUVs. Expect Toyota to continue its hybrid dominance, spreading this technology across all model lines.

Ford – Ford has already tipped its hand where the automaker is going, with plans to introduce six European models to the US market. The Fiesta will lead the way followed by an all-new Focus. Expect both Mercury and Lincoln to get some kind of compact cars and get used to the Escape being the Ford brand's best selling SUV.

Nissan – Like Toyota, Nissan needs to concentrate on smaller cars. Unlike Toyota, their sales are doing quite well. Nissan plans to beat GM to the market with its own Chevy Volt type vehicle, perhaps as early as Spring 2010.

Chrysler – The smallest of the Big 3 automakers, Chrysler needs a lot of help to shift production to smaller cars. Fortunately, the automaker will be tapping its relationship with Nissan to get some of that done, but it'll probably take at least one Chinese automaker, Chery Automotive, to help the company deliver a truly small car to the US market.

Honda – Recently passing Chrysler to take over the #4 spot in the US market, Honda's best offering will be here very soon. The Honda Insight, a five passenger hybrid car, will go on sale early in 2009. Priced $3000 less than the Prius, the Insight will deliver 60 mpg and be the leading edge of a number of small, economical models that will dominate Honda within two years time.

Best of the Rest – Look for VW to offer an all-new sedan for the US market by the time its new Chattanooga plant goes online in early 2011. Expect that Kia and Hyundai will increase their small car offerings and at prices below its competition, while Mazda, Mitsubishi, and Subaru overhaul their line ups to incorporate additional gas saving technologies.

Ultimately, the consumer will be the winner when the new cars come to the market. Even if gas prices spike upwards, many drivers will find that turning in their late model cars for a new compact will pay off quicker then they think. Cars offering exceptional fuel economy and costing less to run.

 

About the Author

Matthew C. Keegan is a freelance writer who resides in Cary, North Carolina. Matt provides magazine, web content, and article writing services to clients all over the world by serving the automotive, human interest, and business communities. Matthew Keegan | Musings is his personal weblog.

Question about General Motors and Chrysler?

I am a student of economics and politics, I am curious of what will happen if/when Chrysler and GM go bankrupt. Will Brands like Chevy, Buick, GMC, Dodge, Chrysler, Jeep disappear for good? Will we be able to get parts for our new GM vehicles 5-10 yrs form now? Will the Big 3 become the Big 1? Will Michigan become a third world country or Ghost state?

Can't answer all your questions, but here are some speculations:

Buick and Cadillac will not disappear; they will simply continue to be manufactured in China where they are already produced in one of that country's most modern car plants and where Buick constitutes one of the best-selling brands. China is also Cadillac's largest market outside the US.

Jeep will not die either. This brand has changed ownership several times in its life. They started out as Willys, then AMC, then AMC/Renault before being bought by Chrysler. Someone else is sure to pick them up. If nothing else the Cherokee will live-on in China where it is already manufactured by the Beijing-Jeep Corp.

Chevrolet will probably survive, but under a different form. It all depends if Daewoo in Korea survives. You see, outside Korea Daewoos are already being sold as Chevrolets (the "Chevy" Aveo, Epica, Optra and others are in fact Daewoos).

Dodge and Chrysler will suffer the same fate as all the other dinosaurs.

As for the fate of michigan: yes, probably. So, will parts of southern Ontario.

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