U.S. automakers have nearly waved goodbye to the passenger car market, save for a few outliers. At Ford, it’s breathing a sigh of relief as the latest data shows Americans still continue to flock toward SUVs and trucks.
The Detroit Free Press reported on the automaker’s sentiment on Thursday and the data was all good news for Ford and other automakers selling more SUVs than cars. The passenger car market has steadily declined since 2012 when the vehicles made up 49 percent of new cars sold. In 2018, passenger cars shrunk to 30 percent of the market. In the first three months of 2019, the decline continues.
Ford vice president, U.S. Marketing, Sales and Service, told the newspaper the shift to SUVs is a “generational” one and believes the move is permanent in the U.S. market. “It won’t bounce back with an oil shock,” the executive added.
Consumers famously downsized their automobiles following the Great Recession at the end of the 2000s. SUVs and trucks were quickly traded in for compact cars and sedans, which returned far better fuel economy.
Today, many crossovers and SUVs return comparable fuel economy to sedans, though not all of them.
GM announced last November that it would almost entirely exit the passenger car market with the end of Chevrolet Cruze, Volt, Impala, and Buick LaCrosse production. The Cadillac CT6 was also included in the announcement, but recent reports indicate the CT6 could live on. GM will sell sedans with the Cadillac brand and the Chevrolet Malibu. Otherwise, GM will be made up entirely of SUVs and trucks.
Where the sedan market bottoms out is unclear since foreign automakers have largely dominated the segment for decades. Cars like the Toyota Camry, Honda Accord, Corolla, and Civic remain big sellers, though they too have seen slumps in recent years.
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Source: The Detroit Free Press
Comments
Someone lie’n, Ford upcoming “CUV” that’s replace Fusion/Taurus (in which people said it’s a sport-hatch) is there also I hear a US Focus return maybe in the works.
Another note FCA will have a sedan(s) under LX-size based on the Giulia. Yes there will be less US sedans but it will be domestic sedans still for sale.
Doubt. When it comes to markets, nothing is permanent.
The rest of the world laughs at fat Americans driving things that top out at 90 mph despite 400 hp.
And trucks are inherently no fun to drive, did we forget the enjoyment of driving? Trucks wallow, the steering is slow and crappy, don’t care the year, make, or model. If you’re a rancher, or work in construction, or have big toys, go ahead and get one. I understand getting one because you must, but not getting one because you actually want to.
Just driving to the office, trying to impress the neighbors? I just don’t get it. A car is still tall enough to reach the McDonald’s drive thru window, ya know?
People today have the attention span of fleas. The CUV fad will not last forever and trucks will soon be priced way out of reach for many consumers so there may be some shifts in upcoming years, especially if oil prices soar.
actually electric and plug in vehicles are coming, including cuv’s and trucks.
When my Acadia gets 31 mpg highway gas prices are not an issue.
Now when I can’t put something in the trunk of my Malibu with out unboxing the item that makes me shift to a different vehicle.
With the great number of CUV models and sizes oil prices will hold little effect.
Again i say that the foreign manufacturer’s are going to be quite pleased with all the new business they are getting from previous big 3 customers, that simply do not want a suv , truck or a cuv (what ever that is). Ford and G M must think that people are like sheep that they will just give in to all the hip! I do not want a suv, truck or cuv! Well my last chance at a sharp car will be the Buick Regal Sport back G S., but it will take a very long time to get it from Germany. I will order one and give them a reasonable time to get it if that fail’s of i go I go to a foreign brand after 40 something years of loyally to GM!
The foreign makers are doing so well that Honda just closed a car plant in England not due to Brexit and just killed the second shift of the Accord at Marysville due to slowing sedan sales. Toyota sales are also sliding.
The move to selling only segment specific vehicles with high profit margins fails to recognize that market demand is dynamic not static. It’s like a supermarket choosing to only sell avocados in their produce because that is where they make their highest margins. Basic business knowledge points to having loss leaders in order to establish entry level loyalty. Like hospitals losing money in their Labor and Delivery but hoping you will remember them when it’s time for a lucrative knee replacement. You can’t expect the customers buying the high margin vehicles will continue to be there if they originally purchased other brands as they advance and upgrade their vehicles.
I tend to agree with most of the above comments. Nothing is “permanent”. Ever! I too feel this is short-sighted by Ford, GM and Chrysler. When the fuel prices hit 5+ per gallon, there will certainly be a thought of smaller. As our roads continue to become more clogged with vehicles, thoughts of a smaller car will be there. And no matter what anyone says, (I’m referring to someone above claiming 31 MPG with an Acadia), the fuel economy is still not there with the SUV/CUV’s that the cars can achieve. I can tell you first hand, being very frugal with my fuel money, that I hand check my mileage all the time. Even with my small 2018 Buick Encore front drive with the 1.4L Turbo, I only get about 32 highway max. My 2016 Jeep Patriot front drive with the 2.4L would only get 31 tops highway. And those are both highway numbers. Yet I’ve had cars like my 2014 Malibu 2.5L that would top 37 highway all the time. My point is simply that people don’t remember things that even happened a short time ago. Maybe the $4/gal gas won’t drive people away from their SUV’s now. But $5/gal will.
Another aspect is that kids who grow up with certain types of vehicles that their parents drive will often gravitate towards something quite different. They don’t want to drive what their parents drove. So many of these kids ages 5-15 now will be in the market in 2-11 years. What then? Don’t get me wrong. As you can see, I too drive an SUV and have normally driven one since 2001. I like them and hope they continue to improve the fuel economy and/or go full electric. But you can be darn sure that if the price of gas hits $5/gal continually, I will be going back to something more fuel efficient myself.
but changes are coming, because alternative fuel vehicles maybe on the rise, including the electric.
That new rear drive based Explorer platform looks like it could be a big sales hit. I’m just thinking that GM may also want to do a similar sized rear drive based version, as well.
Please google these two topics and those who think SUV/CUV use more gas, take a look. Equinox is a bit heavier but better Hwy MPG. With the Equinox I can take home a gas grill or a lawn mower, the Malibu you be lucky to get two large suitcases in the trunk to get to the airport. Try putting a baby in a car seat in a sedan then a CUV/SUV. Sedans are useless when CUV’s are just more practical. Those who only think sedans are the way to go, they are the first one to cry “how much for delivery”?
2019 chevrolet equinox weight
2019 chevrolet malibu weight
I am owner of an xlarge suv . I didnt buy it to show off that would be silly to spend that much money. The extra room is very useful. The driving experience is much better than my last sedan. Todays large suvs trucks are as fuel efficient as my last sedan. Many find that hard to believe but go rent one and see. Theyve made a huge leap in fuel efficiency even from 3 years ago.