Ford claims hatchback sales growing in US, maybe not

Hatchbacks in the US were once looked at in the US with scorn and derision as cheap econo-boxes. Memories of the Chevy Chevette make an entire generation shudder in disgust. However, Ford thinks that it has finally brought a small shift to the market with the Fiesta and Focus, but there is evidence that this is just a fluke. 

Ford claims that 50% of Fiestas are the hatchback model, and 41% of Focus sales are the hatchback.

“The hatchback is hitting an unmet need for versatility as people continue to downsize their vehicles,” said Paul Russell, Focus brand manager.  

However, things might not be quite as good as Ford thinks. According to the Wall Street Journal, of the top twenty cars sold in the US in June, 2011, there are only two are non-SUV hatchbacks (the Chevy Equinox and Honda CRV are on the list but not economy hatchbacks). Pick-ups and SUVS still make up seven of the top 20 cars sold in the US for June. 

A better argument for the increase in hatchback sales might be that gas prices have increased 57 cents per gallon between January 2011 and July 2011 according to Consumer Reports. Ford says that the Focus and Fiesta can both get over 40mpg on the highway. People might be buying small hatchbacks because they provide a good compromise between gas mileage and storage capacity. 

For example, the Toyota Prius was in the top 20 cars on sale in the US in February, March and April. It is a car that has low fuel consumption and a decent amount of interior room.

There is even evidence that Americans do not care about gas mileage. The two best selling cars in the US in June were the Ford F-series pick-up and Chevy Silverado pick-up, which both get 23mpg on the highway. 

Car sales have been up in general in the US, except for Japanese manufacturers who are still coping with the earthquake, so it is not totally surprising that there are more hatchback sales. For example, Volkswagen has sold 19.8% more Golfs this year, but they have sold 77.2% more Jettas.

It is not that Ford is wrong about the growing popularity in hatchbacks; it is just that they might be a little too early in being so proud about hatchback sales. The competitors to the Fiesta are relatively poor. The Nissan Versa and Chevy Aveo just are not great vehicles. It should not be a surprise that buyers are choosing a car that is more stylish, gets good gas mileage and offers a lot of features. Ford discovered a desire or a small car with lots of features that it did not know existed. Hatchbacks are not having a Renaissance in the US, there are just a number of buyers who are finally having their needs met.