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Trump Says Small Cars Can Bring Down Big Prices. Here’s Why that’s Unlikely
Subcompact car sales have dropped 90% over the last decade as US buyers prefer larger vehicles, limiting manufacturers’ incentive to produce small, low-cost cars domestically.
- This year, President Donald Trump proposed US factories build very small Asia- and Europe-style cars to lower new-car prices, promoting a rollback in fuel-economy rules after meeting auto executives.
- Cox Automotive data show subcompact sales plunged 90%, leaving only four models for US buyers while the average new-car price near $50,000 fuels demand for cheaper vehicles.
- Ford last week unveiled a smaller, cheaper EV and CEO Jim Farley said this lets Ford invest in affordable US-made vehicles, while Stellantis plans a Europe-only tiny Fiat EV due to safety and demand constraints.
- Many models are absent from US showrooms, so specialty importers fill demand; Gary Duncan of Duncan Imports sells about 20 kei trucks monthly despite some state restrictions.
- Industry analysts say the $8,000–$10,000 kei cars remain a niche, with automakers favoring larger models for higher profit margins and only considering imports if demand justifies costs.
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11 Articles
11 Articles
Trump administration to Detroit: build tiny cars, 1970s station wagons
Getty ImagesNow that his boss has proposed rolling back stringent, Biden-era fuel economy targets, Secretary of Transportation Sean Duffy says Detroit automakers should reintroduce cars they built half a century ago. “This rule will actually allow you to bring back the 1970s station wagon—maybe a little wood paneling on the side,” Duffy said in a CNBC interview. “We can bring back choice to consumers, so yeah, the minivan is awesome, but maybe t…
Coverage Details
Total News Sources11
Leaning Left2Leaning Right1Center7Last UpdatedBias Distribution70% Center
Bias Distribution
- 70% of the sources are Center
70% Center
L 20%
C 70%
Factuality
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