Bigger is No Longer Better: The Amazing Shrinking Automobile

Global economies in turmoil, rumors of an American double-dip recession and a sharp decline in frivolous spending have hit the automotive industry. Maintenance costs, gasoline use and insurance expense factor into buying decisions. How low can you go?

Case in Point: Mercedes

The curious case of abandoned brand loyalty and an un-cool image with the younger generation has come back to bite Mercedes. Catching on to the fact that size matters, the automaker's foray into the smaller car market started auspiciously with the Mercedes-Benz GLK. Edmunds highlights that the manufacturer's late entry into the smaller crossover SUV market has been successful in design and execution.

From there, the automaker is moving to the B-Class. Unveiling it in Frankfurt on September 13, MSNBC points out that the proposed starting price of $35,055 places the luxury automobile into the realm of affordability for even the somewhat cash-strapped family still in search of a luxury vehicle. Carmakers also hope to give the Mercedes enough youthful appeal to make it an option for the college-bound set.

Fiat 500

It is at this juncture that Mercedes realizes stiff competition from a source it would not normally consider: Fiat. Fiat USA is showcasing its Fiat 500 with a starting price of $15,500, which makes it hot competition even for the stylish Mini. Fiat actively courts the younger market segment with sleek and small models; in so doing, the manufacturer plays to the parent with promises of safety. MSNBC explains that Europe has already awarded the subcompact a five-start rating, which -- combined with the small price tag -- might just lead to approving nods that translate into sales.

The Shrinking RV

Not even recreational vehicles are exempt from the downsizing trend. If you have ever seen one of the larger monstrosities on the road, it is clear that camping -- for drivers of these rigs -- can only take place in easily accessible paved parking lots on relatively flat terrain. Since price tags match length descriptions, it is a small wonder that RVs were threatening to go the way of the wooly mammoth.

To counteract this trend, NW Autos has identified the inclination toward the leaner, meaner, smaller and cheaper RV. Selling like hot cakes are smaller van conversions, diesel-powered rigs and anything shorter than 36 feet. Although retirees are still the targeted demographic of a recreational vehicle industry, the shift to a downsizing economy is not lost on the auto makers. What used to be considered a status symbol just yesterday is now quickly turning into a boat anchor around the owner's neck.

Although not the first time that automobiles have shrunk in size -- just think of the demise of the American tail fin -- it is anyone's guess just how low you can go. In the case of the Fiat 500, there is precious little room for downsizing.