Industry Report Part 1: Canada's Compact Class Critical for Driving New Car Sales

Expect Compact Segment to Heat Up Even More as Automakers Fill Voids in Current Lineup

It's one thing to build a technically advanced, stylish and fun to drive car for $60,000 or more, but it's another to achieve

The heated subcompact market, is about to heat up even more in the near future. (Photo: Honda Canada)

the same for under $20,000.

And in Canada, where a great percentage of what would be expendable income is absconded by our various governments via a slew of open and hidden taxes, low priced compact cars are critical for driving new vehicle sales.

The B- and C-segments, otherwise known as subcompact and compact vehicles respectively, comprise 3- and 5-door hatchbacks and wagon/crossovers, 4-door sedans, 2-door coupes, 2-door convertibles and small SUVs. It's a heated market, that's about to heat up even more.

Quickly running down the various automaker nameplates, it's easy to see there's room for more entries, and most brands have their eyes set on expanding their respective lineups to include more entry-level vehicles.

A good example of voids to be filled is Chrysler Group. Among its three nameplate arsenal, Chrysler, Dodge and Jeep, only two models, the Dodge SX 2.0 and Jeep Liberty can

DaimlerChrysler is ready to enter the subcompact segment with a 5-door liftback model similar to the recently unveiled Caliber concept. (Photo: DaimlerChrysler Canada)

be classified as compact, and none as subcompact. The SX, which is merely a badge-engineered Neon, gets tossed at the end of the year, rumoured to be replaced by something altogether different. With a clear understanding that its compact sedans haven't sold well since the mid-'80s Omni hatchback, expect a 5-door liftback model similar to the recently unveiled Caliber concept, which itself appears to target popular models such as the Pontiac Vibe/Toyota Matrix duo. Based on the next-generation Mitsubishi Lancer and featuring a new family of 4-cylinder engines co-developed with Mitsubishi and Hyundai, it will no doubt be a performer.