DEARBORN -- Baby Boomers and Millennials, the two largest demographic groups in the U.S., are major drivers behind Ford's global blitz of new smaller, more fuel-efficient vehicles.  The first wave hits U.S. shores next year with the launch of two new cars – the Ford Fiesta and Focus.  

By 2012, Ford will produce nearly 2 million units a year around the world from its global C-car platform (including Focus).  In addition, the company plans to sell 1 million vehicles annually from its global B-car architecture (including Fiesta).  Ford's C-car platform alone may spawn up to 10 new models, many of which will be targeted at the U.S.    

"The shift is on.  More U.S. consumers are buying smaller vehicles.  Ford cannot grow the business by being just a pickup truck company," explained George Pipas, manager, Ford U.S. Sales Analysis.  "We're moving toward a more balanced portfolio to better meet consumer demand."

Every year since 2004, small-car sales – defined as B and C cars – have grown in the U.S, regardless of the price of gas.  Now, more than one in five new vehicles sold is small car.  

"There's no doubt the price of gasoline is a factor in small-car sales, but the potential volatility of gas prices – such as the spike we experienced in 2008 – is one of the reasons we see a continuing shift to small cars when current gas prices are relatively stable," explained Pipas. 

Two other factors sit at opposite ends of the car-buying market in terms of age, but they both carry a lot of weight – Baby Boomers and Millennials.  Born between 1946 and 1964, Baby Boomers are the largest and most affluent demographic group in the U.S., totaling nearly 77 million. 

Baby Boomers, who spurred the popularity of minivans in the '80s and full-size SUVs in the '90s, are increasingly choosing smaller vehicles for a variety of reasons, including easier ingress and egress and the desire to downsize their vehicles as their children grow up and move out of the house.  

"It's not just the downsizing of autos.  The average square footage of new homes has been decreasing as well," explained Pipas.  "We're moving from a post-World War II era marked by conspicuous consumption to a period of careful consumption." 

Millennials, who currently are 15 years to 30 years old, are also snapping up small cars.  This group numbers more than 64 million and comprises 27 percent of the driving age population.  Data shows that nearly 60 percent choose either a compact or subcompact car as their first new vehicle. Another 10 percent opt for a small utility vehicle.

"Millennials are very brand loyal.  Once you get them in the fold, about 30 percent remain," Pipas said.  "They also are very demanding of the products they buy, have very expensive tastes and tend to buy vehicles that are very well equipped." 

Largely bolstered by these two demographic groups, Ford expects small-vehicle sales, which represented 21 percent of the U.S. market in 2003, to climb to 36 percent in 2013, equaling the mix of medium vehicles.  Large vehicles, including pickup trucks, will decline to 28 percent of market from 39 percent over the same period.

"There has been a dramatic change in the popularity of small vehicles.  They will climb from last place to first place in market mix over a 10-year span," Pipas said.  "We expect small-vehicle growth to be steady over the next few years.  And Ford will be there with a variety of excellent products from our global B- and C-car platforms to complement our current cars, trucks and crossovers that continue to garner accolades and increase Ford market share."