#Small

The fortunes of small cars used to be tied to gas prices. Sales of compacts rose when gas prices shot up, when gas came down, big was beautiful again. Sales of small cars are up strongly in America, but this time, it’s different, think two of the US motor industry’s most senior executives. They believe that the trend won’t reverse, and that sales of small cars will go further up.

A few years ago I was let in on a secret: Toyota’s dreams of world domination hinged on capturing hip young buyers interested in green tech and high fuel economy. Of course, Toyota’s hybrid plans have been the worst kept secret since In-N-Out’s “secret menu” and as a result, the green Gen Y boys and girls I know in Berkeley have been excited for years about a “baby Prius”. Well kids, the blue spaceship landed in La Jolla and Toyota invited us down to take a drive. Does a hybrid Yaris with more MPGs than you can shake a stick at have what it takes help Prius become Toyota’s best-selling nameplate? Let’s find out.

The best-selling nameplates in America may still be pickup trucks, but for the first time in nearly a decade, cars and car-based crossovers are outselling the body-on-frame competition. The shift occurred in the second half of 2007, as gas prices built to their Summer 2008 peak, and despite more reasonable energy prices, consumers do not appear to be going back to large trucks and SUVs en masse. And, as Automotive News [sub] reports, the downsizing of America’s buying tastes is doing more than just putting a fork in the SUV fad.