Small cars to rise in sales

Ford Motor Co.’s top sales analyst said that he expects sales of cars and car-based vehicles, such as crossovers, to continue increasing as consumers from baby boomers to young new buyers seek more efficient transportation options.

George Pipas, who spoke to the Automotive Press Association in Detroit, said a variety of factors will contribute to the continued growth of cars, especially smaller models. That includes continued gas price volatility, government policy that encourages consumers to buy more efficient models — such as this summer’s cash-for-clunkers program — and changing demographics.

The nation’s baby boomers, for example, are becoming empty-nesters and seeking smaller vehicles.

Pipas said sales of compact and subcompact cars accounted for 15% of industry sales in the United States in 2000 but said small car sales have “grown every year without interruption since 2004.” So far this year, he said, small cars accounted for 21% of all U.S. vehicle sales.

By 2013, Pipas predicted that compact cars, subcompact cars and crossover vehicles built off small-car platforms will account for 36% of total new-vehicle sales in the United States.

Right now, Ford’s only compact car is the Ford Focus. But by 2012, Ford intends to offer 10 compact or subcompact cars or crossover vehicles based off of those platforms.

So far, Ford has announced that it plans to introduce the Ford Fiesta subcompact, a new version of the Ford Focus next year, and a small minivan called the Ford Grand C-Max by 2012.

“If you want to grow in this market, if you want to be on a path towards sustainable growth … The next battleground is … in the small-car market,” Pipas said.
Source:[freep.com]