I don't say we don't need those, but the Corolla never seems to have targeted that market, at least here in Europe. There always were plenty similar-sized cheaper and more basic cars from domestic manufacturers. Is it different in the US?

It's a very basic car in the US in terms of its price bracket, not quality. There is just very few new cars under $30K in the States, the manufacturers are milking the SUV / truck market.