SOURCE: General Motors - Global
It's All About Small
When gas prices first spiked, it increased the need for smaller cars. But years later, the small car segment is still going strong. Just over the past year, sales of compacts and subcompacts, so-called "mini-cars," have surged by 49.9% according to the Wall Street Journal.
Two factors are driving this growth: The fact that more people live in cities now than in suburban/rural areas, and smaller cars have advantages in cities where space is at a premium. And, Baby boomers entering retirement are trading down in size.
That said, buyers who are opting for smaller vehicles don't want to trade down in terms of comfort and convenience. In response, automakers have been adding equipment and refinement, so that today you can find many of the luxuries usually associated with a larger vehicle, on a mini car -- with the added benefit of 30 to 40 miles per gallon.