Will Americans spend big money on small cars?
It's a question European luxury-brand executives are pondering as they get set to launch compact models in the United States.
They expect that smaller and less expensive premium cars will attract new customers. But there's little doubt those vehicles are being developed so the Europeans can meet strict future U.S. fuel economy requirements.
Mercedes-Benz has a new A- and B-class lineup with a sedan, five-door, small crossover and other variants. BMW is working on a front-wheel-drive range and will share the architecture with Mini.
Both brands will launch their compacts within two to three years and will price the entry-level models at about $30,000.
The quest for fuel efficiency also means that the race for more horsepower and larger displacement engines is over. The Europeans are reintroducing four-cylinder engines in their ranges.
BMW last offered a four-cylinder in 1999; Mercedes-Benz, in 2005. This fall, BMW began offering the Z4 roadster and the 5-series sedan with four-cylinders. Mercedes-Benz has a four-cylinder in the freshened C-class sedan and all-new C-class coupe.
Volvo will replace all of its five- and six-cylinder engines with a new range of four-cylinder gasoline and diesel engines.
Jaguar is developing smaller engines to replace the 5.0-liter V-8 now used in all three of its models.
Compact plug-ins and electric vehicles are being developed, but most won't be on the market until 2013. That's when BMW debuts its i3 electric city car, the first vehicle in its i subbrand. Mercedes is testing an electric fuel cell version of the five-door B class in Southern California.
Supercars are still being developed, but they'll have hybrid powertrains. They include the Jaguar C-X75, BMW i8 and Mercedes-Benz SLS E-Cell supercar.
