Tough Competitor: Scion xD

It’s somewhat disheartening to spend the week talking about the auto bailout while driving a top-notch Japanese small car that clearly points to Detroit’s failure to be competitive in the marketplace.

Yes, I know that gas is now below $2 at the pump, and some statistics indicate that consumers are moving back to SUVs and trucks. But that’s misleading and likely the result of huge rebates and incentives the Big Three are offering to move that product. Most serious analysts, including one from GM I talked to, think that gas prices will go up again and that the move to smaller, more fuel-efficient cars is permanent.

Obviously, a $15 billion interim buyout is not going to reposition GM, Ford and Chrysler as green companies. Much of the money will go down a debt rathole. But with new leadership in place and a dose of reality, the carmakers may finally be moving in the right direction.

The car I’m driving is the Scion XD, yours in loaded form for just $17,358. What are the American competitors? I like the Saturn Astra, and the Ford Focus has some virtues, but it’s hard to identify many other credible entries. (The Pontiac Solstice is a good car, but not really a flag-waving North American.) This is a category where Detroit needs to excel. Other Asian entries include the Mazda3, Kia Rio5, Nissan Versa, Subaru Impreza, Toyota Yaris and Corolla, really the list goes on and on.

I don’t always like Japanese car styling: Honda messed up the back end of the new Fit, for example. The Scion xB looked better in its first incarnation, but the xD is cool-looking and modern in a youthful way. That younger market segment is clearly in the sights, because the car comes standard with both an aux-in for a media player and a connector that both plays and recharges an iPod.

The 1.8-liter four-cylinder engine produces a modest 128 horsepower, but it’s enough to move this little car with spirit, even when the gears are stirred through a four-speed automatic transmission. The direct benefit is 26 mpg in the city and 32 on the highway.

This is a very good, practical small car. The controls are well laid-out, the back seat happily seats three, the cargo area is adaptable and sizable, and visibility is excellent all around. The level of safety equipment, which includes standard ABS brakes with electronic force distribution, side-curtain airbags, active front headrests, a tire pressure monitoring system and even a first aid kit, impresses me. Clearly, here’s a standard to match for our on-the-brink automakers.

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