Will GM, Chrysler, and Ford regret canceling all these sedans with a possible depression on the way? (sedan, SUV)
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Why do they need to build sedans? They can simply make trucks/SUVs with less whiz bang options to keep prices down. They can do rebates, factory cash, zero percent financing, value or repeat customer, employee pricing, hell anyone remember CASH FOR CLUNKERS I mean Christ.....the whole dictionary of sale buzz words will come out to make sales.
Making a sedan isn’t any cheaper than a comparable SUV. The difference is in profit margins. It would be very easy to trim down options on a truck or SUV to cut prices if people wanted cheaper SUV and trucks. . Retooling your plant to make a sedan can get expensive. It would be cheaper to give some discounts to build and sell SUV and trucks than to retool to build cars nobody wants. Manufacturers don’t care what they make as long as it sells. If all of the sudden cars styled like a 1986 Oldsmobile Custom Cruiser station wagons were hot items I guarantee you Family Truckster box on wheels would be coming out of car makers assembly lines. Right now SUV crossover and trucks are what people want to buy.
Unless you just need to buy top of the line truck or SUV you can still buy entry to mid grade level trucks and SUVs. Not every vehicle on a dealer lot starts at 70k MSRP. Unless you’re getting a 4x4 dually 1 ton crew cab long bed Laredo Platinum Silverado and check every option box on your way down the option list till you get to Sign Here dot dot dot you aren’t gonna spend 70k plus on a truck.
Ultimately there are still enough sedans out there still being made
Yes and they are pretty much made by Toyota, Honda, Nissan, Kia/Hyundai, and VW, so it shows a market is till out there and the domestics are going to loose alot of money on them.
People like crossovers now. Domestic automakers don't have any bottom of the market crossovers, but we might see more of those in the next few years, depending on how things recover. There's little reason companies can't make crossovers nearly as inexpensive as small sedans if they need to, but right now they're milking it because they can. Some companies are even adding "crossover styling" to their small hatches, and it seems to be working - give the appearance of large wheels and more ground clearance with a lot of black plastic and people buy into it.
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Not as many car owners need to seat 5+ anymore. The average household size in the US today is 3, average number of children per family is 1.9. I can't speak for the rest of the US but in my neck of the woods people seem to be buying small crossover-ish vehicles, things that seat 4-5, with a hatch in the rear, AWD, and the appearance of more ground clearance.
Any car maker that just builds one or two types of vehicles is putting themselves at risk of market changes. I don’t think it’s the economy, I think it’s the choices.
But personally speaking, I’ve not seen an American car that I’ve liked enough to be willing to spend the insane amount of money they think they’re worth on. Closest I’ve come recently was the Lincoln Aviator, but at that price, the Mercedes GLS is my pick. $70k and the door panels wiggle against the door frame. They look beautiful, but if the interior fit and finish isn’t near perfect, I’m just not interested...
Yes and they are pretty much made by Toyota, Honda, Nissan, Kia/Hyundai, and VW, so it shows a market is till out there and the domestics are going to loose alot of money on them.
The domestic manufacturers were already losing money on their sedans, which is why they cancelled them. People like NC211 are why. They won't buy American even if they make a decent car in a class, because they won't even give them the chance. The "safe" choice to buy or recommend is always Toyota or Honda. It just got to the point where there was no point in even trying to compete, even with a good product.
But Toyota has more crossovers/SUVs than they do cars, as well. Honda too.
Simply put, the mileage penalty isn't there with smaller crossovers, but the practicality is. And profitability, too.
Soccer Mom's want their SVU's, CUV's and will cut your throat to get them. If GM wants to stay relevant, they will conform and move with the market, or get left behind.
The domestic manufacturers were already losing money on their sedans, which is why they cancelled them. People like NC211 are why. They won't buy American even if they make a decent car in a class, because they won't even give them the chance. The "safe" choice to buy or recommend is always Toyota or Honda. It just got to the point where there was no point in even trying to compete, even with a good product.
But Toyota has more crossovers/SUVs than they do cars, as well. Honda too.
Simply put, the mileage penalty isn't there with smaller crossovers, but the practicality is. And profitability, too.
I'd argue the mileage penalty is still there, it's just smaller. Reduced ground clearance and a tapered rear both improve highway fuel economy.
After a certain point, mileage is less important, and there's a definite practicality advantage to a hatch/wagon/crossover over a sedan.
There are entry level priced suvs in most brands. With gas prices down, and good mileage out of most small suvs, I see suvs being what people want to buy. Also, if sedans become popular to buy again, I am sure the manufacturers will build what people want to buy.
+1. Twenty years ago, the advantage that sedans had over SUV's was that the former had better gas mileage. Nowadays, unibody CUV's and SUV's have bridged the fuel mileage gap so much, people are figuring there's no point in owning a sedan.
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No, they are making what people want, and that's SUVs, trucks and Crossovers. The last time we had a sedan was a 1980 Datsun 210, since then only SUVs and pickups. Even the Toyota Corolla is no available as a hatchback which is really a CUV.
Price is not an issue, with the average new vehicle now at over $35,000, there are still CUVs at half that price, such as a new Chevrolet Trax 4WD or Ford Ecosport for just $18,000.
People like crossovers now. Domestic automakers don't have any bottom of the market crossovers, but we might see more of those in the next few years, depending on how things recover.
Well you have vehicles like the Trax and EcoSport, but they're not particularly attractive.
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If GM wants to stay relevant, they will conform and move with the market, or get left behind.
