Imagine how your Metros would fair in this, or my Charade?
You're absolutely right, the IIHS is the INSURANCE Institute for highway safety. (This is paid for by INSURANCE companies with financial motives) They are not law makers. They set no regulations.
They don't pre-warn the OEMs that they're going to test their cars for new collision types, and when they do a new test like this one, they make sure that it makes the headlines: "YOUR car is UNSAFE!" This crash test is not required by the government, and these cars were not engineered to meet a government standard for these tests.
They can now hold up a piece of paper that justifies charging you more insurance for your small Hyundai or Mitsubishi.
This view of the small-overlap crash test makes it look like the whole front end is crushed...SHOCKING!!..its not. All cars, big and small. are far safer than they were 20 years ago. SUVs have safety disadvantages that small cars don't.
However, many people are ignorant. Even more people are ignorant about this. It's bad news for Mitsubishi (and Fiat, Hyundai, etc.) because most people will believe these were indeed government crash tests and that will potentially hurt sales