Alg Report: Small Car Future In The U.s. Mixed, Uncertain

Sales for small cars in the U.S. market have been mixed in recent years. The BMW MINI brand is one small car that has performed well in America, earning top sales marks each year since it was first released in 2002. However, other small cars such as the Fiat 500 and the Smart Fortwo have not fared as well.

A recently-released ALG (formerly known as Automotive Lease Guide) Report says that although there is a clear link between gasoline prices and the sales of fuel-efficient cars, automakers cannot afford to simply rely on this as they produce small models. In fact, the mini car market is turning out to be one of the most difficult within to earn success.

The report continued, “Until 2008, residuals consisted solely of models from MINI, one of the strongest brands in the industry. With the addition of the smart and Fiat models, which have much weaker forecasted retention, residuals have declined. Retail sales among minicars spiked in 2008 when Smart debuted with over 24,000 sales, but the brand quickly dropped off, and Fiat has been slow to contribute.”

By: Freddy Atkins

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