Why Won't Ford Sell a Minicar in the U.S.?

Tuesday, November 10, 2009 by Margaret Zewatsky

The Ford Ka minicar, popular in Europe, will not be sold in the U.S. In an article by Automotive News released on November 9, Alan Mulally said the Ka is too small for American tastes. Aside from me immediately agreeing with him, I thought of the recent minicar analysis I wrote titled, "Will Super Small Cars Generate Super Small Sales". The market for minicars in the U.S. is small -- the segment is not forecasted to grow greater than 1% of the U.S. market. If I were an OEM prioritizing my U.S. lineup for the next 5 years, I would consider skipping the minicar segment and focusing on the B segment and the crossovers. Yet Fiat, GM, BMW, Hyundai, Toyota, and Volkswagen are all planning launches within the next 5 years, so there must be some common rationale for offering a minicar.

All this makes me wonder...

  • Are so many manufacturers launching minicars to ensure they meet the new CAFE standards?
  • Will the automotive forecast hold true or will the American consumer start demanding minicars and if so, will the OEMs be ready?
  • Is Ford trying to make the most of the Fiesta launch in early 2010 and drive more volume by not launching a minicar?
  • Or is Alan Mulally right and the B segment vehicles are the smallest cars Americans will purchase?

What do you think?

Photo of the Ford Ka

Posted by Margaret Zewatsky, Global Market Analyst, Polk (11.10.2009)

Comments for Why Won't Ford Sell a Minicar in the U.S.?

Tuesday, November 10, 2009 by Bertrand Rakoto:
We will see if the A segment is able to do better now than the Yugo did some 25 years ago. Fiat intends to sell in the US a special version of its 500 in 2011. The car is based on the same platform as the Ford Ka and the European model is built in the same factory as well.
Tuesday, November 10, 2009 by Molly D.:
I love the idea of smaller cars that are better on gas. It seems like they would be fun to drive and easier to manuever! The problem is, I'd feel more comfortable with one if there weren't so many big SUVs on the road at the same time. Safety would be my biggest concern in getting one!
Friday, November 13, 2009 by Patrick Faloney:
I must be the exception. I, for one, would jump at the chance to by a mini-car (or city cat) like the KA. This is especially true if the Diesel version would be made available.

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