Originally published February 15 2006
Asian carmakers expect a big year for the compact market in the U.S.
by Mike Adams, the Health Ranger, NaturalNews Editor
Honda, Toyota and Nissan are all banking on increased sales in compact car models, as gas price scares are anticipated to drive consumers toward fuel-efficient models.
Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co. will sell at least four compact car models in the U.S. this year, releasing their smallest designs as cars gained market share in 2005 against trucks and sport-utility vehicles for the first time in 25 years.
Toyota's Yaris and Belta, Nissan's Versa and Honda's Fit will be displayed next week at the North American International Auto Show in Detroit.
``It's probably the most favorable time for Japanese carmakers to release small cars in the U.S. since they first made the impact on the market in the 1970s with small cars like the Civic and the Corolla,'' said Ashvin Chotai, an auto analyst at Global Insight in London.
Japan's three largest carmakers are shifting their U.S. strategy back to automobiles with engines smaller than 1.8- liter capacity, after devoting a decade to develop light- and full-size trucks like the Tundra, Titan and Highlander.
Last year's record rise in gasoline prices benefited Asia-based companies that sell smaller, more fuel-efficient vehicles, said Merrill Lynch & Co.'s analyst John Murphy.
Armed with designs from Japan, where eight of every 10 cars sold in 2005 was a compact model, Toyota, Nissan and Honda are aiming to get the edge over General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler unit, which have only four compact models between them.
Toyota's Belta, released in November, sells for 1.32 million yen to 1.75 million yen with two engine options of 1 liter and 1.3 liter.
Toyota has been selling Scion cars priced as low as $13,270 each, in the U.S. since 2003.
Compact cars made up six of Japan's 10 best-selling vehicles in November, according to the Japan Automobile Dealers Association.
Honda President Takeo Fukui on Dec. 22 said the automaker may expand its factories in East Liberty, Ohio, and Alliston, Canada, to meet growing demand for its Civic and Fit compact cars if demand rises in 2006.
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