Small Cars Are Actually Selling Now - Why?

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Washington DC August 4, 2011; The AIADA newsletter reported that engineers have long known that designing smaller, lighter vehicles is an ideal way to meet tighter fuel-economy standards.

According to CNN Money, automakers are finally breaking their dependence on heavier models and managing to create comfortable, luxurious small cars consumers actually find appealing.

As new models roll out, the category is gaining in popularity and competitiveness. That trend is likely to continue as regulations grow tighter. Through July, the small-car segment rose to 17.4 percent of all car sales, accounting for nearly 1.4 million cars built in the U.S. Midsize, large, and luxury cars gained as well, though less so proportionately. In other words, small cars, accounting for a third of all car sales, were the only category to gain share.

Toyota's Corolla leads the segment, trailed not far behind by the Chevrolet Cruze from GM, Honda Civic, Hyundai Elantra, and Ford's new Focus. The price of gasoline remains a wild card for the future of small cars (editors note; now you know who is controlling the American Economn, read my lips OPEC). Conventional wisdom says gas will only grow more expensive. Should the opposite happen, consumers may once again seek big and powerful (editors note; and safer more comfortable) transportation), leaving automakers with lots of little flivvers on hand. Read more about the demand for small cars by clicking here.