Niche market = high markups. Even if the dealers don't sell at a huge mark-up over MSRP
*********my point is that james says there is some huge pentup demand. If there was such a demand, then the car would fly off the sales floor. I proved that that is in fact, NOT happening************
doesn't mean that there isn't a huge mark-up
**********what!!!!!!!!!! Please show me, factually, what the 'huge markup' from the manufacturer is???????
(hint: it would be reflected in a profit and loss statement from the manufacturer) Another myth that uninformed consumers believe......
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built into the car's MSRP in the first place. There's a fundamental difference in the cash flow and market penetration of a luxury product to a mainstream one. Asking "If MINI can sell such a small car, why can't GM/Ford/etcetera do it?" is like asking "If BMW can successfully market a compact rear-wheel drive car, why can't GM/Ford/etcetera do it?"
The xB was a hit... before Toyota gave in to customer clinics and shoved a 2.4 liter motor into the 2nd gen. The Fit used to be a hit, before gas prices started going back down and sales slid back.
Without the impetus of high gas prices, people will not buy small cars in larger numbers. Which is a disincentive for spending more on marketing and development, at least in the US market.
It's different in other markets where gas prices are already higher (due to tax, scarcity or whatnot), where people will gleefully buy "small" cars with fewer luxuries and features for prices that Americans are used to paying for larger cars.
A fully loaded Honda Fit here goes for the same price you can get a stripped down, 300 horsepower Chevrolet Impala V6 for there. :