CNN reports, "The motor industry has rarely been so unsure about its future, or what its customers want. The consensus seems to be that drivers want to downsize to small runabouts that pollute less and are cheaper to run."  Many of the models attracting the biggest crowds at the 2008 Geneva Motor Show this week have been new compact or even subcompact cars.

"Toyota's new IQ is typical of the new trend," CNN notes. "They've managed to squeeze four seats into a vehicle which is less than three meters long."  The Boston Globe calls the iQ "Japan's answer to the Smart Fortwo."  Jalopnik offers photos, and notes that the iQ may have one competitive advantage over the Smart car: "seating capacity. The IQ has a unique 3+1 seating arrangement which makes it suitable for three adults and one child (or two comfortable adults, one contortionist and a magical elf)."  Britain's Mirror adds, "Some clever thinking has gone into this car. First, the wheels have been put as near each corner as possible, to maximize space inside.  The fuel tank is flat and has been placed under the floor to allow the rear axle to be moved back."  A Toyota spokesman recently told Edmunds Inside Line, however, that the iQ "is bound for Europe and not the United States."

CNN Money adds, "Europeans will get their first glimpse of Indian manufacturer Tata's Nano, hailed as the world's cheapest car and due to begin rolling off the production line by the end of the year. The pint-sized five-seater will cost $2,500 plus tax and delivery, but will initially only be available in India while Tata works on improving the car's emissions ratio and safety features."  Technoride says that many industry insiders believe "that the overhauled second generation of the minicar is inevitably bound for the Old World."  Britain's WhatCar said the press launch of the Nano was "by far the best-attended" event at the show.  WhatCar adds, "There is an encroaching feeling that reality is starting to bite the car industry. The once-buoyant ethos of smaller and greener was being joined by another watchword -- cheaper -- and there's no greater advocate of that than the Nano."

Detroit News columnist Neil Winton calls the compact Ford Fiesta "the star of the show" in Geneva.  The Fiesta "retains most of the exciting body design showcased last fall in Frankfurt with the Verve concept," Winton writes, and includes "premium features like sophisticated music players, advanced phone systems, and keyless entry."