It's another new car season as manufacturers wait with baited breath to see what all of you think of the newly introduced 2006 models -- and this year, there is plenty of reason to be nervous.
Manufacturers are especially tense because gasoline prices have soared from a year ago, topping $3 in late summer and hanging around at that level ever since. That has helped sales of fuel-friendly models, but the guzzlers are struggling.
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It's not just high gas prices that are steering people toward smaller, well-equipped cars, by the way. Korean manufacturers Hyundai and Kia are getting stronger and better every day, offering buyers cars that are now at or near the top of their market segments. And they do this while still keeping prices lower than most other companies can offer.
That means trouble for their competitors, particularly American car companies, who are forced to up the ante and offer more car for the money -- and bring them onto the market a lot faster, too. If they can't keep up, they will almost surely lose more sales.
The bottom line is that with increased numbers of models in the compact, intermediate and subcompact markets, and everyone feeling the pinch from higher gas prices, smaller cars look to be in for much stronger sales in 2006.