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In the fight to stave off the ever-increasing market grab
by Toyota and Honda, U.S. manufacturers are banking
once again on luring back buyers with small, fuel-efficient
cars.
So far, however, consumers appear unimpressed.
Sales for June showed that the Chevrolet
Cobalt, HHR and Aveo, as well as the Pontiac
Vibe and Dodge Caliber showed significant declines
in sales at a time when news headlines were filled
with stories of increasing oil and gasoline prices.
The Cobalt led the way with a 36 percent decline
from the same period last year, while all but
the HHR -- which squeaked through with just a
5 percent drop -- also showed double-digit slides.
The only U.S. compact to show a sales gain was the aging Ford
Focus -- due to be redesigned soon -- which
was up 20 percent. While some of that increase
may be due to fleet sales, it's also true that
Ford has priced the Focus at a bargain level,
throwing in a $2,500 cash rebate to cut the already
low base sticker of $13,715.
That sort of cutthroat pricing can't last forever. When the new Focus comes out, Ford can't afford to offer such a huge rebate to make the Focus attractive to compact car buyers and still cover its new development costs.
So -- can U.S. manufacturers compete in the compact car market against the Japanese competitors, who have so firmly grabbed the hearts of so many buyers?
A clue about the future may be shaping
up over at Saturn, which has been showing sharp
sales gains over the past 22 months with a lineup
of smart, stylish, fuel-efficient cars.
No longer the "different''
little car company that emerged 17 years ago as
GM's experimental arm, Saturn is using synergies
with GM's other divisions here and in Europe.
The newest Saturn, the midsized Aura, is based
on the same chassis used in the Saab 9-3, and
the upcoming compact Astra hatchback is sourced
from GM's German Opel division.
Saturn also hopes to show the way by soon offering the first GM sedan with a fuel-sipping diesel option -- likely in the either the Astra or Aura -- a first since the disastrous diesel V8s of the 1980s. Later in the 2008 model year a true gas-electric hybrid option will be offered in the recently restyled Vue compact SUV.
GM, like Ford and Chrysler, has had many false starts when
it comes to building compact, fuel-efficient cars
that can compete with the best the Japanese and
the Koreans now offer.
But if Saturn, which has a cult following based on its humble beginnings and no-haggle pricing at its dealerships, can truly lure buyers back to a U.S. brand, it may signal a small step toward Detroit's recovery.
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