The humble hatchback makes a comeback

By Phil Patton

updated 4:06 p.m. ET Oct. 31, 2007

Hatchbacks have a bad rap.

“If you say ‘hatchback,’ people tend to think of a yellow Pinto,” says Art Battaglia, product manager for the Volvo C30, one of the latest vehicles in a new crop of hatchbacks from luxury manufacturers. The C30 is a highly customizable three-door that offers hatch practicality without, Volvo hopes, the baggage of the name.

Battaglia, like many auto executives, avoids the term altogether. Volvo calls the C30 a “coupe.”

And Volvo’s not the only automaker wary of the term. At Audi, the A3 is always referred to as a “sportback.”

You might surmise that luxury automakers steer clear of any “hatchback” connotation because they don’t think consumers consider these vehicles upscale, no matter how well appointed. But this avoidance isn’t just endemic to luxury brands. The hatch-equipped Mazda3 is called a “5-door.” And Toyota prefers the term “liftback” for a version of its wee Yaris.

Then there’s the “hatch or wagon” question — what’s the difference between a four-door wagon and a five-door hatch? Sometimes, it’s just in the name.

Hatchbacks, common in Europe and Japan, have long been disdained in the U.S. “Americans have a problem with small,” says cultural anthropologist and marketing consultant Clotaire Rapaille of Tuxedo, NY. Also, older Americans may recall the small, cheap hatches of the ‘70s energy crisis and have no fondness for revisiting those times, he says.

But having adopted fresh names, the new generation of hatches — which do not hark back to those economical relics from three decades ago — are winning over the masses.

According to a study by CNW Marketing Research in Bandon, Ore., cars with traditional trunks are still the most popular body type among new car buyers, but hatches are generating significant interest. In the “near luxury” category of CNW’s report, just over 20 percent of new car buyers said they preferred a hatchback to a sedan or station wagon.

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While younger buyers are the main target market, even older buyers looking for “near luxury” vehicles are keen on hatches. More than 20 percent of people from 35 to 65 years old listed hatches as their top choice over other body types, and nearly 30 percent of those in the 55- to 65-year-old age bracket preferred hatches.

One reason behind the recent surge in enthusiasm for hatches is the rising popularity of small cars in general. Tom Libby, senior director of industry analysis at Power Information Network in Westlake Village, Calif., says that sales of small cars have been driven by the rising price of gasoline. Thus, up goes the hatch market as well. “Hatchback sales are up about 20 percent in the last two years,” Libby says.

As sales of small cars continue to rise — Power Information Network reports that the compact vehicle market share rose from 27.9 percent in 2005 to 31.2 percent in 2006 and is predicted to continue upward — even more hatches should appear.

Still, hatchbacks account for a relatively small portion of U.S. auto sales. Many of the most successful are not seen as hatches at all, according to Libby. The New Beetle and Mini Cooper, the latter an especially sought-after vehicle, are likely regarded as small, cute and fun cars first, and hatches second, Libby says. Furthermore, few would say that the Toyota Prius, with sales up 76 percent this year, is selling so well because it has a hatch. It’s seen as a hybrid, maybe even the hybrid, above all.

Today's hatchbacks increasingly emphasize style and sportiness over economy and efficiency. Cute new hatches like the Yaris and Fit appeal to first-time car buyers. Mazda’s 3 and 6 hatches, including the sporty Mazdaspeed3, have proved beneficial for the brand by appealing to families and young people. Mazda sales rose about four percent a year in the two years since the company introduced the hatch versions of its Mazda3 and Mazda6, according to Libby.

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