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Position: Auto Articles - [Auto News] - Compact Car Sales Reach 21% in May
Updated: 02:28 p.m. EDT, July 02, 2007
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Compact Car Sales Reach 21% in May

Edmunds.com reports that in May sales of compact cars accounted for 21 percent of the automotive market, a sharp increase from the 15 percent for the compact genre recorded three years ago.

With most automakers set to release their June sales figures on July 3, the trend toward smaller, more fuel efficient cars is likely to become more pronounced.

This shift in American car-buying tastes could prove to be another nail in the coffin of traditional Detroit automakers who continue to rely on SUVs and trucks to carry their sales figures.

It would appear that more than high gas prices are driving buyers to small Asian and European models. These companies consistently offer better incentive deals and with environmentalism the emphasis of the day, small cars are simply more fashionable. In short, it's "in" to be green.

Edmunds predicts Nissan Motor Co. will see double digit increases over June 2006 with Toyota and Honda following suit. Ford and GM, however, are expected to see sales declines. Chrysler will most likely survive the reporting with numbers increases, but only due to the company's strong fleet sales.

Overall, both Kelley Blue Book and Edmunds predict that June sales for 2007 will be slower than last year with the slump in the home building industry further effecting truck sales.

With Chinese automakers prepared to enter the American marketplace within the next 18 months, the stage is set for the return of the compact car to U.S. highways in a big way.




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