Safety Will Trump B-Car Fuel Economy

As the global auto industry rolls out new entries in the economical B-car segment, volatile fuel prices are not a guarantee of success in the U.S. market, analysts warn.

“It is, to some extent, a science experiment,” says David Cole, chairman of the Center for Automotive Research in Ann Arbor, MI.

Even as crude oil prices creep past $70 per barrel and the average per-gallon price of regular unleaded gasoline hit an all-time high of $3.24 in May, “fuel economy's not an overriding consideration” for U.S. consumers pondering small cars, says Joe Phillippi, principal of New Jersey-based AutoTrends Inc.

“Safety is definitely going to be an overriding consideration,” he tells Ward's. “(Buyers are) going to want to feel very, very comfortable from the safety perspective.”

The warnings come on the heels of Chrysler Group's announcement that its B-car deal with China-based Chery Automobile Ltd. has been approved by the Chinese government.

At April's New York Auto Show, General Motors Corp. also showed three minicar concepts, including the Groove 5-door.