The death of the premium compact in America... or is it?

They've certainly been a mixed bag so far. Some have had major success over here, while others have been abject failures. On one hand, cars like the Mini Cooper have shown that a higher-dollar small car can have a BIG fanbase and major sales success - but on the other side of the coin, the Audi A3 and Volvo C30, are NOT what one might call a major sales success.

The A3's plague is one thing: It's a Volkswagen Golf with a more boring design and a higher price. There is nothing to differentiate it - the engine isn't even powered up compared to the VW version. Fuel efficiency still isn't THAT great with the 2.0t - 22/28 MPG, so for all you "green car" fanatics, forget it. Price? Starts at around 29,000 and shoots up with options, up past 37,000 pretax in some cases - the most expensive VW Golf you will ever buy. At that price point, who cares - you can strip out options and buy a much larger A4, and in America, size matters - not to mention that the A3 doesn't have enough of the "small car" benefits (driving dynamics, etc) to justify it over the A4.

The Volvo C30's problem? It's UGLY. It's much cheaper than the A3 (as it should be, considering it's smaller), but it's fatter, more front-heavy, and no more spacious than a MINI Cooper. The rear-end design is impressive to automotive journalists (the same sort of types who circle up and drool all over themselves whenever any new station wagon is previewed, no matter the company, cost or price), but considering the lack of sales success, America agrees that it's heinous. Sad thing is, if it weren't for the taillights stretching as high as they do, it wouldn't be so bad. The price ain't too bad, but for the same price, you could get a MINI Cooper S and shred circles around this clown car.

The BMW 1-series is not a volume seller in the US, but BMW only predicted 10,000 sales a year in the US, showing that they were clearly intending it to be a niche-market vehicle, at least from the start. Right now, it's doing 11,000 to 12,000 a year here, so it's right on track. It's expensive, a tad awkward looking, but unlike the above two, the 1 offers something to justify its price - in this case, incredible performance and handling. The 135i in particular, will shred an E46 M3, and even pace an E90 M3, for half the price.

Premium small cars have not been a universal disaster in the US. Obviously, the MINI Cooper is an example of how to succeed in such a business - reasonable price that doesn't overlap with its company siblings, quirky personality and look, and (as is usually important with much smaller expensive cars) high performance- that of a little go-kart. Can the price get a little high? Sure, it can top 30,000 dollars when options factor in. But this car not only MURDERS the Volvo C30 in MPG, but the blown MINI Cooper S will literally run circles around it.

Then there's the premium compact that existed before the segment became the new "it" thing - the Acura Integra/RSX. From the late 80s to the mid-2000s, this car sold like hotcakes offering a few nice things - higher performance than a Honda Civic, better handling, more style, nicer appointments inside, Honda Accord pricing. MPG was always quite high - even in the cheap-gas 90s, you were getting 34 MPG out of the perpetually 4-cylinder car.

What about the unorthodox premium small cars? The Subaru WRX, STi and Mitsubishi Lancer Evolution can be considered as premium small cars, despite the lack of a premium badge and the complete absence of even ATTEMPTING luxury - these are hardcore sports cars, pure and simple. And oh yeah, they are anything BUT green - none of these three are particularly fuel-efficient. These two companies know what combination of elements to put together in order to get customers to pay 35,000 dollars for a small car - and if the premium badges were the wiser, they would be going after Mitsu and Subaru, full speed ahead.

The forgotten Mercedes C-class coupe was a mild success here, but Benz killed it off, and restyled the ancient model's front and rear for other markets, renaming it the CLC class (what a mouthful) instead of putting the work into a new model. If they want to return to the US market and compete again, they will need something that looks FAR better than this ugly, bizarre hatchcoupe.

What is coming in the future? The Lexus LF-Ch, for one - as well as the MINI-sized Audi A1, a revival of the BMW Isetta, a compact Buick based on the Chevrolet Cruze, a pair of Alfa-Romeo compacts, and even an Aston-Martin minicar, the Cygnet. Acura has discussed bringing the RSX back, too, while Infiniti has discussed a model slotting below the G37 and Mercedes-Benz is talking about doing up the next A-class as sort of a miniature CLS-class, and bringing it here.

The question is: will they succeed as the RSX, MINI Cooper and the 1-series have in America, or will they fail miserably? If they offer nothing unique, are overpriced, or underperform, they will die, and die fast. Complacency is a killer.

The dismal state of the American automotive industry.

As much fun as it is to post videos of loud luxury cars, sometimes I like to opinionate as well. And when it comes to the current state of the American auto industry, I have a LOT of opinionating to do.

It amazes me how poorly managed the big 3 are - ESPECIALLY General Motors and Chrysler. Ford is the ONE American automaker that currently seems to have a shot at turning it around. Right now, I give GM absolutely no chance - and Chrysler's ridiculous lack of productivity makes GM look good.

FORD

Ford, for one, has much less excess weight to drag around. Now that Jag, Land Rover and Aston Martin are gone, Ford only has themselves, Mercury, and Lincoln - Mazda and Volvo operate fairly independently in comparison. Mercury and Lincoln share dealers too, meaning Ford only really has 2 dealer-brand clientele to cater to.

Which may or may not be making it easier for Ford, but right now, they're the ones who are executing a legit turnaround plan. The Edge and new Focus are very hot sellers right now, the Fiesta is soon to hit US shores, and even talks of the tiny Ka coming over have begun. Lincoln, which, except for the poor neglected LS, has been a Ford rebadge-a-thon, is finally beginning to come into its own, beginning with the MKS and continuing with the coming MKR and MKT. The MKS is fairly lame compared to its competition, with a somewhat strange, dated-looking design and a shared platform with the Taurus, and the CTS is still annihilating it, but it is making some sales. Expect the MKT to sell well when it comes out, because it looks like a winner. The MKR will do for Lincoln what the original Cadillac CTS did for the old Standard of the World - put its competitors on notice that Lincoln is back to stay.

The Ford Flex, so far, is NOT selling so well - predictable, concerning the current demand for smaller, more fuel-efficient vehicles. The new F150 is the right truck at the WRONG time, especially considering the cancellation of the more fuel-efficient diesel that had been planned for it. A new Ranger is desperately needed. But the Escape is doing well, and the Explorer is sustainable enough to make a comeback. Both SUVs are of a fairly timeless design that doesn't change much from one generation to another - the new Escape in particular is a clean looking alternative to the quirky stuff that's out there (hello CR-V) that has always had MPG on its side, and, of course, was the first hybrid SUV.

And, of course, if Ford follows through with plans to euro-up Mercury, that brand will be provided with a nice shot in the arm - one that has been SORELY needed for decades and decades. It's bad when the last vehicle they released that wasn't a rebadged Ford was the Villager van - a rebadged Nissan Quest back in the day.

GENERAL MOTORS

Just when I start to think they're figuring it out, they go back and prove that they're still just as incompetent as ever. 

They've had a few successes lately. The Malibu is HOT, and sales compared to the old Chevy Malibu reflect that. It's gone from rental garbage to a legit midsize competitor to the Camry and Accord and Altima. The Lambda triplets (especially the Buick Enclave) have been doing well. The Enclave has been HOT - the Saturn Outlook has trailed it a bit, with the GMC Acadia (Outlook twin) pulling up panting but still crossing the finish. The new Saturn Vue has been hot. The Sky and Solstice have done fairly well - more impressive for the Solstice considering the garbage it sits next to on Pontiac lots. The G8 has been making sales, and the new Camaro will do so as well. The new CTS has been hot, and the V-variant, along with engine donor Corvette, have competitors SCRAMBLING to figure out a way to win. Even the new Vibe has been making appearances on the road.

So what do they do? They get complacent, and let it all fall apart again. Let me reiterate it: what Americans want now are new small cars and small SUVs/crossovers. The General has dropped the ball BIG TIME in that regard. The Chevrolet Aveo? An old, crappy excuse for a subcompact. Chevrolet Cobalt? Old. Chevy Equinox/Pontiac Torrent? On life support. Hummer is tanking FAST. Saab is doing next to nothing. 

First of all, IMO, there should have never BEEN a "Chevrolet Cruze" announced. Quit changing the name of your stupid compact every time you make a new one. The Cobalt was a good, strong name. Cruze just sounds stupid. But nevermind that, the REAL mistake is putting America on the back of the waiting list. Ford, Honda and Toyota are stealing your lunch money, because they put out their new models, and you didn't. The Civic has literally been flooding the market since it went into its revolutionary 8th generation. The conservative Corolla has been selling like hotcakes, as has the strange-looking new Focus. All three provide something the Cobalt no longer does - some degree of modernity and refinement AND high MPGs. And let's not forget about the updated Hyundai Elantra and Nissan Sentra crowding the market further, along with the sporty alternative, the Italian-looking Mitsubishi Lancer.

You're late to the small-car party, GM. You need to bring the Cruze TODAY, not two years from now.

The Aveo has no place in the market anymore. From the time the 2nd-gen Aveo's come out til now, Honda's released TWO generations of Fit (and flooded the market completely), Toyota's put out the hot-selling Yaris, Hyundai's updated the Accent to keep its conservatively-styled offering current, and Nissan dropped the Versa on us, and found subsequent success. Ford is readying the Fiesta for America, and will have it on the market WELL before GM has any answer. Why? Because GM stubbornly refuses to get on its horse and give us the Beat, or any other alternative in the subcompact market. 

The Torrent was DOA three years ago when it came out, and the Equinox is done for. GM has NO excuse for not finding a replacement yet, because the VUE is currently making it rain for Saturn. GM, take the VUE platform, VUE engines and VUE transmissions, put together a couple new interiors and exteriors, and give us our small crossover. It's NOT rocket-science. You're getting killed by the CR-V, Edge, Nissan Rogue, RAV-4, and even the Dodge Nitro and Jeep Compass and Patriot.

The original new Camaro concept was announced at a time when it would have been the second muscle car on the market, after the Mustang. Yet, GM lagged yet again, and got beaten to the punch by the Dodge Challenger and the Hyundai Genesis. They're already making sales. Your tardiness is hurting you, AGAIN. Why is it that Hyundai, Toyota and Honda can get highly-demanded vehicles onto the market so quickly, yet YOU have to take four years to overhype it, pontificate, flip flop, cancel it, reinstate the vehicle program again, pontificate some more, hype it again, redo the interior, change plans a few times, and then release it SO LATE? The Saturn Astra is another example of this, and the lateness, coupled with the high price and inferior MPG, has it rotting on the vine.

I'm not even going to bother mentioning the Pontiac G3 and G5 rebadges. They're too lame to even acknowledge. The G6 is in DIRE need of replacement, and for some reason, the ancient Grand Prix is even being sold as brand new. Hey GM, the Bonneville called and wants its era back.

There is one thing that makes this even worse though. ONE thing that will add to it. 

And that is GM letting Cerberus take control of GMAC. Cerberus really wants to get rid of Chrysler, and now, they have GM by the balls. Now that they refuse to do loans to anyone with sub-700 credit, they're getting KILLED, because that's the demographic that bought their cars. People with GOOD credit, who have more of a choice in cars to buy, don't want GM cars, because their products are inferior compared to the competition. They have nothing of value to offer that Ford, Honda, Toyota, and Nissan don't already have. Cerberus will only let one of two things happen: either A: The General buys Chrysler, or B: GMAC continues to choke GM, and GM continues to piss away billions and billions of dollars, watch its dealers close like venus flytraps in a beehive, and watch its sales disappear entirely. GM has almost no way out of this, unless they start cutting the fat, selling off or killing off excess brands, and meeting consumer demand in a TIMELY manner.

Chrysler

The worst of the 3. No small cars now, and now plans for small cars anytime soon. After the Neon was killed, so was the Chrysler small car in general. The Dodge Avenger/Chrysler Sebring duo are UGLY, with inferior power, driving ability, MPG, and interior quality. The Charger and 300 still sell decently, which isn't surprising seeing as they're about the only thing Chrysler has done right. The Challenger is starting to sell, and the Viper surprisingly still has a market. The Wrangler is selling fairly well even despite the bad MPG and tough times for SUVs. And of course, the Grand Caravan/Town and Country twins are selling quite well. Beyond that, it's bleak and it's not getting any better.

The Nitro is trailing its competition, through, as is the 2nd-generation Jeep Liberty. The Durango/Aspen twins are old and LONG overdue for replacement. The Jeep Compass and Dodge Caliber are absolutely useless. The Sebring convertible is a day late and about 10 dollars short. The midsize sedans are HIDEOUS. The Challenger is inferior as far as MPG goes, when compared to the Mustang, Camaro and Genesis coupe. The Dodge Journey is a SLOW seller with nothing to set it apart and really make a person want to check it out or buy it. And, worst of all, the near-future is absolutely EMPTY at a time when the American auto industry needs change.

Cerberus has given up on Chrysler. If they successfully bully GM into buying Chrysler, the once-great (yeah, right) American company will be broken up and killed. Or (preferrably), each brand will be individually sold off and they'll go their seperate ways, left to flourish or perish on their own or under new parent companies. 

The future is bright for Ford. They're enacting change, they're actively working to satisfy the demands of today's American customers, and they're aggressively putting out new model after new model in an effort to get the customer's attention. 

However, Chrysler is dead. Chrysler WILL NOT survive. Good riddance. And at the rate the General is going, I don't see them surviving either. That's not to say that all of their brands will die nasty deaths all at once (on the contrary, they could seperate and do their own things, and brands on the rise such as Cadillac can finally flourish, while brands with no place can die off, such as Hummer), but the era of the big American car companies is over. Ford shrunk and is still shrinking, but GM is in way too deep. And Chrysler... snowball's chance in hell of turning it around now, unless Hyundai comes in and shows them how to put together legit vehicles and do it within 1-1 1/2 years. 

Also posted at http://www.associatedcontent.com/article/1184237/the_american_car_companies_are_dying.html