Small is beautiful.-E.M. Schumacher

There were few automotive designers or Detroit marketers that comprehended the "small is beautiful" quote by the ecology-minded author Schumacher in the early 1970s. There were few of us to foresee CAFE legislation, $1.30-per-gallon gasoline prices and possible fuel shortages, and the combination of length of time it requires Detroit to engineer and convert to smaller models compared to the dramatic and rapid switch by Americans suddenly embracing the "small is beautiful" concept.

In January, sub-compacts, compacts and imported cars accounted for 60% of U.S. car sales. With stepped-up production on X-bodies this fall, Chrysler's new Reliant and Aires, Ford's Escort and Lynx, and the yet to be announced J-cars by GM, we can fully expect that this part of the market will reach over 80% in the next two years.

The adjacent table does not exactly compare apples with apples, but it does reflect some interesting points. The three highest selling nameplates in this segment are domestically built. Toyota and Datsun are gaining about 26% of the fleet business in this sector (just about the same share that all imports have of the total retail market). If and when VW commits to a fleet program, it could have an important effect.

 

NAMEPLATE TOTAL SALES JAN-MAY 1980 % 1979 MODEL YEAR FLEET SALES % BASE PRICE 4/10/1980
Chevette 175,783 13.8% 30,845 6.9% $4601
Citation 171,264 13.4% 38,119 8.5% $4800
Fairmont 140,131 10.9% 60,273 13.5% $4823
Corolla 116,651 9.1% (all Toyota)  55,000 12.3% $4993
B-210 87,000 6.8%

(all Datsun) 62,000

13.9% $4789
VW Rabbit 80,106 6.3% no fleet program - $5199
Skylark 75,942 5.9% 8,422 1.8% $5563
Pinto 65,858 5.1% 22,135 4.9% $4542
Horizon 59,884 4.7% 7,956 1.7% $5681
Omni 49,057 3.8% 6,406 1.4% $5681
Phoenix 41,942 3.2% 5,269 1.1% $5465
Zephyr 39,992 3.1% 20,342 4.5% $4970
Omega 37,854 2.9% 3,185 0.7% $5501
Volare 37,513 2.9% 55,953 12.5% $5033
Concord/Pacer 30,824 2.4% 31,974 7.1% $5094
Aspen 27,769 2.1% 28,750 6.4% $5045
Spirit 34,352 1.9% 13,283 2.9% $4505
Bobcat 13,705 1.7% 4,512 0.1% $4104

 

Another notable point is that in the '79 model year there were about 1,500,000 fleet cars sold (domestic and import), with nearly 450,000 in the sub-compact and compact area; that is nearly 30% of the cars. It is significant that many fleet buyers and lessors still prefer the intermediates and the full-size models.

Small may be beautiful, but it still may take some time to make everyone in our market a believer.

About the author
Staff Writer

Staff Writer

Editorial

Our team of enterprising editors brings years of experience covering the fleet industry. We offer a deep understanding of trends and the ever-evolving landscapes we cover in fleet, trucking, and transportation.  

View Bio
0 Comments