Mazda Microcar a Trend for U.S.?

With the clear trend toward small cars and a general downsizing of our transportation choices, one has to wonder just how small American car buyers are willing to go. Are drivers here ready to accept a vehicle smaller than our current subcompact choices?

Smart USA is importing only 16,000 of the diminutive smart fortwo two-seat minicars in 2008 and there is a long waiting list of buyers who have placed a $99 deposit. That begs the question of whether other micro cars might hit home in the North American market. Mazda's recent redesign of the popular AZ-Wagon micro-mini in Japan made us take a second look, since this car offers more room and flexibility than the smart fortwo with better fuel economy. Plus, the AZ-Wagon makes the transition from cute to cool with a few custom touches evidenced by the Custom Style rendition that Mazda is offering in Japan.

Here's the challenge: The AZ-Wagon is engineered to meet Japanese Kei-class standards that define its size and weight, and also limit engine displacement and power output. As such, it's simply not designed to meet U.S. safety standards. In Japan, Kei-class cars are limited to 133.8 inches (or a bit over 11 feet bumper-to-bumper), 58.3 inches in width, and 78.7 inches in height. The Japanese government also limits engine displacement to just 660 cc with a maximum power output of 63 horsepower if they are to qualify for tax and insurance breaks. The U.S. smart fortwo is powered by a 1-liter (1,000 cc) inline three-cylinder engine that produces 71 horsepower at 5,800 rpm.

Still, the styling, functionality, proportions, and footprint of this wee-wagon would surely be appealing to buyers looking for a city car, inexpensive second car, or hyper-efficient primary driver. Mazda's redesigned AZ-Wagon is a very attractive package with interior room for four adults that offers ample rear seat legroom, especially considering the overall dimensions of the car. The chopped-off tail end design limits cargo space behind the rear seat, but the 50/50 split rear seats are on tracks and can be moved forward or folded when you need to carry more gear than people. Space efficiency is impressive in the new AZ-Wagon platform and wide door and rear cargo hatch openings make the interior quite accessible.

The new design also pushes the wheels to the far corners of the car with less intrusion on the interior. That longer stance also improves handling dynamics and offers better stability along with improved ride characteristics. Mazda's XT and XS models even ride on 14-inch aluminum wheels, with 15-inch wheels setting the XT-L apart.

As you might expect, fuel economy is quite good with all Kei-class cars and the new AZ-Wagon is no exception. On Japan's 10-15 fuel economy test cycle, the naturally aspirated AZ-Wagon scored 23.5 km/l, which translates to approximately 56 mpg in the combined driving cycle. Fuel economy is said to be 15 to 25 percent better than Japan's 2010 standard, depending on the model.

The 660 cc engine is a double overhead cam design with variable valve timing. For more power, a turbocharged version is also offered. The turbocharged engine meets Japan's Ultra Low Emissions Vehicle standard and the naturally aspirated engine is certified as a Super Ultra Low Emissions Vehicle. That's 75 percent cleaner than current specified Japanese emissions levels. Four transmissions are available in the AZ-Wagon - a 5-speed manual, 4-speed automatic, a continuously variable transmission (CVT), and a CVT with a seven-speed manual mode.

With a micro-car, one would expect a micro price. In Japan, the 2009 pre-tax price for Mazda's AZ-Wagon ranges from 880,000 to 1,412,000 yen. At current exchange rates that's $8,340 to $13,382 U.S. dollars. The AZ-Wagon Custom Style version can push the price up to an equivalent $15,230. The smart fortwo starts at $13,590 and a loaded one is over $16,000. While the smart and Mazda AZ-Wagon are an apples-and-oranges comparison, it's an indication of what American buyers are willing to pay for a microcar.

If small truly is the next Big Thing, then micro could well be a player, particularly for city and urban applications.