Manufacturers put money on mini models

Date: 13/03/1997

SMALL is beautiful.

At the influential Salon de Genève earlier this month, Europe's car manufacturers unveiled a new range of models. It seems that 1997 is going to be dominated by the small and economic car.

Even Mercedes-Benz, the specialist in big and luxurious models, has chosen to shrink with its new Class A 'baby Mercedes' monospace.

Unlike other segments of the market, demand for small cars in Europe is set to expand from 32&percent; now to 35&percent; in 2000. Not surprisingly, all the major manufacturers are desperate to corner this growing market.

Ford already produces the Fiesta and the Ka, and used the Geneva show to launch its Puma mini-coupé - intended to combine the pleasure of a sports car with economical performance.

Adam Opel, the German subsidiary of General Motors, came up with a three-cylinder Corsa, again with the intention of reducing the purchase price and keeping fuel use low.

Japanese and Korean manufacturers are just as keen to tap into this market, and should benefit from demand for the long-established Nissan Micra.

Where they will be threatened is in their inability to offer the same width of product range as the big European carmakers, given that they still have only a small share of the overall market.

This is the European manufacturers' opportunity - and one which they are determined to seize.