I think the VW beetle would disagree. The Avtovaz Lada, too.

Opel Corsa, Mazda Familia, Fiat Uno, Trabant 601, Toyota Corolla, VW Golf, Renault Clio, Seat Ibiza...

All of those the best or second best selling models of their manufacturers.

To make money on a small car you have to sell volume and small cars don’t sell volume in the US compared to bigger vehicles. The top three selling vehicles every year, by a large margin, are Ford F150, Chevy Silverado, and Dodge Ram.

If the big high margin vehicles sell in volume there is little incentive to create small low margin, low volume cars.