Compact executive car is a car classification term applied to premium cars smaller than executive cars. In European classification, compact executive cars are part of the D-segment. In North American terms, close equivalents are "compact premium car", "compact luxury car", "entry-level luxury car" and "near-luxury car". Compact executive cars are usually available in saloon, estate, coupé, and cabriolet body styles.
Most entry-level luxury cars are part of D-segment, but some cars like the Lincoln MKZ, Buick LaCrosse, Hyundai Azera, Acura TL and Toyota Avalon are part of E and F-segments despite the prices of D-segment premium and V6 mid-size cars.
The modern version of this market segment was successfully established in 1950 when "the Nash Rambler was deliberately conceived as a luxury compact rather than an austerity model" and available only as a convertible, with hardtop (no "B-pillar") and station wagon and models added in 1951. By 1959, sales of European small cars and American Motors' Rambler "exploded" with many their buyers having above-average incomes leading commentators to describe "cultural motives behind their preferences" including the owners' "unconcern for symbols of success and importance that testified to the possession of the real thing." Long-time president, chairman, and CEO of General Motors, Alfred P. Sloan, described the rising demand for compact cars was not motivated by economy, but "was essentially a further expression of the customer's desire for variety."