Downsizing Luxury

Hyundai Genesis Coupe (© Hyundai Motor America)

Hyundai Genesis Coupe

Immense and intimidating land yachts like the famed big-fin Cadillacs of the late 1950s and early '60s once defined the luxury-automobile segment here in America. These bold and brash machines made a profound statement that bigger was better: The bigger the car you drove, the more prosperous you must be.

Possibly the best example of this "size matters" philosophy in motion was the 1974 Cadillac DeVille, a pillared 2-door behemoth with then-fashionable opera windows behind the side windows. It was a hulking hunk of metal, measuring 19.1 feet long and weighing in at a touch less than 5,000 pounds. Consequently, it wasn't very sporty and it guzzled fuel; its average fuel economy was an abysmal 9.4 mpg.

Today, however, many people are feeling the pinch of uncertain economic times. The definition of affluence has changed, and luxury-car buyers have a much different set of expectations. Comfort, slick design, technology, fuel efficiency and value almost always trump making a "big" first impression these days.

Consequently, there is a new posse of players in the luxury-car segment — and the players are smaller than ever before.

While it is true that cars in general have been shrinking over the years, true luxury has never really reached the compact market. That is, until now. Here is a rundown of eight small cars that represent the latest evolution of the luxury auto. Beyond their varying degrees of opulence, these rides are also refreshingly reasonable, which just may be the big news here. In fact, all of the vehicles on this list are priced around $30K.

Bing Images: 1974 Cadillac DeVille

Length: 167.4 inches
Price: $24,600
From Sweden with love, the front-wheel-drive C30 — the shortest car on our list — is a 2-door hatchback that features Volvo's delectable turbocharged 2.5-liter 227-horsepower in-line 5-cylinder engine. The C30 T5 and the sportier R-Design, at $26,950, personify Volvo's safety-meets-practicality approach to luxury. The C30's 2-tone leather interior really sets the stage, and its cabin is more mainstream and less quirky than past Volvos, with sculptured surfaces and a great overall layout.

Read: Intelligent Choices

Length: 169 inches
Price: $27,270

The sharp-looking Audi A3 4-door hatchback is powered by either a turbocharged 2.0-liter 200-horsepower gasoline engine or a diesel that delivers fuel ratings of 30 mpg city/42 mpg highway. Gas-powered A3s can be ordered in optional quattro all-wheel-drive trim. A crisp interior design with standard leather seats and numerous premium touches creates a lush aura in the cabin, while the standard 6-speed manual gearbox unleashes the thrills when properly stirred.

Compare: Audi A3 vs. Volvo C30 vs. Acura TSX

Length: 168.1 inches
Price (estimated): $30,000

The Mercedes B-Class is a competitor in the compact-premium segment in Europe where it is offered with numerous gasoline and diesel powerplants. Currently offered for lease in F-Cell trim in California, an expanded B-Class lineup has been rumored to be U.S.-bound for some time. Logic dictates this expansion would coincide with a major redesign, which is slated for 2012. If and when it arrives nationwide, the B-Class will be the smallest car Mercedes has ever sold in America.

Read: Mercedes Brings Fresh Metal to Geneva

Length: 170.1 inches
Price: $29,120

Lexus has added a twist to its compact-luxury offering: a hybrid drivetrain. The CT 200h shares the 1.8-liter 4-cylinder engine and hybrid system from the Prius — but little else. The platform, body and interior are uniquely CT 200h. Trims and finishes are top-quality, and the CT 200h delivers 42 mpg city/41 mpg highway fuel efficiency while coddling driver and passengers in the lap of luxury. This eco-friendly offering comes from a dedicated luxury marque, and it should do well in this segment.

Bing Images: Lexus CT 200h


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