32 Votes

Boost it!

Want a clear sign that the '80s are coming back? Even luxury cars may be getting downsized.



Take General Motors (GM). Right now, the company's designers and product planners are toying with a project called the micro-premium car. If GM builds such a pint-sized, top-shelf car, it would face off against the likes of the Mini Cooper, the BMW 1-series, and the Audi A3.

Throw in the fact that GM, Ford Motor (F), and others are using smaller engines in their luxury cars, and it's clear that the newly approved fuel economy rules and $100-a-barrel oil are making a deep impact on how Americans will drive, even rich Americans.

"They're doing the right thing," says John Wolkonowicz, analyst with Waltham (Mass.)-based Global Insight. "It's in keeping with the new reality."

2008 Detroit Auto Show Photo Gallery

2008 San Diego Auto Show Photo Gallery




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Cadillac Says It Now Has To Have A Mini Competitor

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