Where it goes wrong is at the bottom of the line. There are now so many safety regulations (I am looking at you, EU), that these cars get heavier and more costly to make. Many manufacturers decide to step out or up their game. 10 years ago, the cheapest model of a manufacturer would maybe be 10 thousand Euro. Now it easily starts at 15 thousand Euro, and it will mostly be a model of some years ago. New models at the low and small end are priced heavier, because of all these safety regulations.