As auto market fragments, success down-sized

By James B. Kelleher

DETROIT (Reuters) - Add this to the list of things getting downsized in Detroit: the definition of a blockbuster car.

As Asian automakers take an ever-growing share of the slow-growing North American market, and push more and more models into showrooms, analysts and industry insiders at this week's Reuters Auto Summit in Detroit said the very definition of what constitutes a "hit" vehicle has changed.

In the old days, a car or truck was only considered a blockbuster when it sold 400,000 or more units a year.

No more.

Today, the fragmentation of traditional mass-market market into sub-segments means a car can be considered a sizzler even if sales fall to a fraction of the old benchmark.

"Depending on the segment, 100,000 can be an absolute home run," said Cisco Codina, Ford Motor Co.'s North American sales chief.

Kevin Tynan, an analyst at Argus Research, agreed.

"The days of 400,000 Explorers (in annual sales) are over," he said. "You're better off with four different crossovers or a combination of products at 100,000 units each."  Continued...