President Donald Trump is encouraging American automakers to start making tiny cars in the U.S. The micro cars could be a more viable option for cost-conscious car buyers, but industry analysts say car companies are trending toward bigger, pricier models. 

What You Need To Know

  • President Donald Trump has asked his Transportation Secretary to work with U.S. automakers to manufacture tiny cars in the U.S. 

  • Tiny cars, popular in Europe and Japan, are often cheaper to buy than regular cars

  • Industry analysts say it would take four years and billions of dollars to move tiny car manufacturing to the U.S. 

“I’m 6’2” and there’s no cool way to get in or out of this car,” said Andrew Maxon, while cramming into his miniature ride. “But we all suffer because it’s cool.”

Maxon runs Capital Kei Car Club, a group of tiny car enthusiasts in the Washington, D.C. area. He bought his 1993 Autozam AZ1 after a trip to Japan, where the tiny vehicles, also known as Kei cars, are common. 

The small cars have also caught President Donald Trump’s attention. He directed Transportation Secretary Sean Duffy to begin working with U.S. automakers to start producing them. 

“Today, I’m giving all American car companies the right to build what are known as tiny, little, tiny cars,” President Trump said, after touring a General Motors plant in Michigan. 

In a statement to Spectrum News, a Transportation Department spokesperson said “the U.S. is open for business when it comes to these innovative, affordable small cars. We'll continue to work with automakers to support vehicles that meet federal requirements.” 

Right now, tiny cars are scarce in the U.S. because they generally do not meet U.S. safety and emission standards. The models on the road are typically imports made more than 25 years ago, that can be registered as an antique and exempted from safety rules. 

Tiny car owners also face tariffs and customs fees, which can add thousands of dollars to their cost. 

“You gotta be a little committed to own something like this, but it’s less than a new Honda Civic would be,” Maxon said. 

Maxon paid about $20,000 for his tiny sports car but said a more basic model truck can cost around $6,000 to $8,000. 

Tiny car and truck owners we spoke with said they like the vehicles’ appearance and handling. 

“They’re really useful and fun to drive,” said Garrett Smedley, who owns a tiny truck. 

But experts say U.S. automakers aren’t interested in manufacturing tiny cars. 

“It’s a lot of work, that may not have any profitability, for a tiny car,” said Jason Miller, a professor of supply chain management at Michigan State University. He estimated it would take four years and billions of dollars to create a new U.S. supply chain for tiny cars. 

According to the federal reserve, about 85 to 90 percent of passenger vehicles currently assembled in the U.S. are trucks or SUVs. 

“Automakers, as they’re paying these higher input costs for assembly in the U.S., they’re looking and saying ‘okay, what is it that we can produce that delivers the biggest, essentially, bang for a buck?’ And that is large trucks, SUVs,” Miller said. 

Maxon acknowledges life with a tiny car isn’t for everyone but says he’s hopeful tiny cars like his will catch on. 

“It just brings a lot of joy everywhere I go,” Maxon said. “People love to see it.”