Ford is gambling small cars have big appeal with consumers.The company that became synonymous with trucks and SUVs is shaking things up with a move toward slighter, more fuel efficient cars. The showpiece of the campaign is the 2011 Ford Fiesta, which is smaller than anything we’ve seen out of Dearborn in years. It’s part of CEO Alan Mullaly’s push to boost fuel efficiency, a campaign that comprises putting smaller engines in lighter cars.
Ford rolled into Manhattan with a Fiesta to show everybody how cool it is to Go Small and Live Large and show small is the new big. Ford is hardly alone in beating this drum. General Motors is placing a huge bet with the 2011 Chevrolet Cruze and next-gen Chevrolet Aveo, for example. Both companies are competing against cars similar to the Toyota Corolla and Honda Civic, two mainstays of the segment.
However while small cars are big in Europe — where one-third of all vehicles sold is a compact — they’re so popular here in the states. That’s varying; J.D. Power & Associates says compacts and subcompacts, which included 21 percent of the domestic market five years ago, will hit 35 percent by 2013.
Beyond providing consumers with the performance they anticipate — and the numbers Ford desires to meet tightening fuel economy regulations — Ford says the engines are more cost-effective. They also give an alternative to consumers who might want an eco-friendlier car but don’t desire to spend the added cash for gas-electric like the Fusion Hybrid.
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