With the price of oil increasing exponentially, car companies have reduced their engines from V6 to four cylinder ones, from luxury sedans to economical compact cars. The million dollar question is how to auto companies still make profits. This issue was heavily on many a mind at the Geneva Motor Show this year.
The answer to this question lies in the ambience and the look the car has to offer. The companies are fast switching to models that are compact, energy efficient yet look nice. The MINI is one such car, Toyota has plans to do this with the iQ and many other car makers are giving this a serious thought and implementing as well.
Executives from many successful car companies agree to the fact that a small car does not necessarily have to be poor car, if it has the looks and is presentable enough with nice accessories and colors it will get a positive response by the audience. Cars like Mazda2, Fiat 500 and Ford Fiesta are examples for such idea.
The Nissan Company sites the Juke with a price tag of $18,000 as the perfect example of a car that is small yet has been perceived well by the audience. In contrast to this is the Land Rover Evoque, this car is so against the company’s grain that it seems to be from a different universe.
Making small cars doesn’t mean that the need for bigger cars is no more, companies should spend more money and develop strategies to save on fuel used by these vehicles and this will help attract the fuel conscious audience. This will however remain a challenge for automakers and which class of cars will emerge victor still remains a question.