From Nazis to Hipsters

After decades of getting short shrift, compact cars are now poised to outsell their larger rivals in America. What’s driving this change? According to industry analysts, it’s mostly fear: of an inevitable escalation in fuel prices, or of being saddled with unaffordable monthly payments. It’s also generational: Twentysomethings, who grew up riding in their parents’ SUVs, view large vehicles as unsustainable. Today’s compacts also require far fewer tradeoffs than their predecessors. While a 1980s Chevrolet (GM) Cavalier was cramped, tinny, and featureless, the new Chevy Cruze Eco is attractive, solid, tech-laden, and gets 42 miles per gallon. Then again, it’s also wider, taller, and heavier than a mid-’90s Mercedes (DAI:GR) E-Class midsize sedan. All of which is to say that small cars don’t suck anymore. Nor are they small—a far cry from the original compact calamity, the Volkswagen (VOW:GR) Beetle.