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Trump's Mini Car Idea: Too Small for US Market?
16 Dec
Summary
- US consumers overwhelmingly prefer larger SUVs and trucks over small cars.
- Demand for compact and subcompact cars in the US has drastically declined.
- Kei cars require modifications to meet US safety standards, deterring imports.
President Donald Trump has suggested that US factories should manufacture small, inexpensive cars, similar to those popular in Asia and Europe, to address vehicle affordability. This initiative, reportedly discussed with auto executives, aims to lower car prices by producing smaller models. However, experts question the economic viability, noting that the primary obstacle is not regulation but a consistent lack of American consumer interest in such vehicles.
Americans have historically demonstrated a strong preference for larger vehicles, such as SUVs and trucks, which also offer higher profit margins for automakers. This trend has led to a dramatic decline in sales for compact and subcompact cars over the past decade. Consequently, most remaining small car models are imported and face limited sales figures.
Furthermore, specialized "kei" cars, popular in Japan, do not currently meet US safety standards, requiring significant re-engineering. Automakers indicate that their production and import strategies are driven by customer demand, and without a substantial increase in interest for smaller vehicles, plans for domestic manufacturing or importing these tiny cars remain unlikely.
