Shocking news from auto industry

[Jethro]

https://jalopnik.com/ford-and-gms-de...ady-1839858417

Who could have foreseen this? People wishing to buy <$20K cars do not wish to buy F150s, Corvettes, Equinoxes, and Mustangs.

https://www.youtube.com/watch?v=kvL3jL2ppa0

[ffishman]

You don't need to be a rocket scientist to figure this out.

[Jethro]

Originally Posted by ffishman

You don't need to be a rocket scientist to figure this out.

Yep.

I do not understand the Big 3 abandoning this market unless they cannot make a profit on small cars, and even then, why can't they?

The imports are building their small cars here with American labor to avoid import tariffs, theoretically with similar cost of labor. Materials cost should be similar as well.

With Civics, Sentras, Camrys, Corollas, Accords perennially in the top 20 cars sold, I'd think that would be market opportunity.

The last American "car" I had any exposure to was my son's Challenger that we had for six years, and that thing never needed anything but tires and oil, so I'm convinced America can build a reliable, quality car with nice fit and finish.

So I'm stumped.

[Hot Runr Guy]

I don't understand why manufacturers have to be all things to all people. If they can be profitable in the SUV and truck markets, and offer employment with outstanding health care to their employee's, so be it.

Whe've all seen how Toyota and Nissan have been sooooooo successful in the full-size truck markets. Let manufacturers focus where their strengths are.

HRG

[jfishpa]

Mean while this show up in my Inbox ; https://www.ford.com/powertrains/bat...ailSafeList_pr . Cruze and Fusions biggest markets are as fleet vehicle, not much profit to be made there.

[Opus Dog]

I look at this totally different. The world of cars and trucks are changing and the change is moving rapidly. My guess is that what we drive in both trucks and cars will not be near the same in ten to fifteen years. There is going to be a big shift out of the gasoline market.

I was told a number of years ago that there was about a $500 profit on small cars and about a $12,000 profit on trucks and large SUV’s. Foreign car companies have dominated the small car market for a very long time. By shrinking the companies to only trucks and focusing on the new technology to power these vehicles is a very smart move. When there is another major economic downturn, they will be in a solid financial position to weather the times unlike what happened with the last economic downturn. One of the items not talked about in the these small car markets is what the assembly line workers for those different car companies gets paid. Look at what workers in Ohio and Michigan versus Tennessee get paid. Big difference there.

I honestly believe that when the American car companies figure out the world of electric trucks or alternative powered vehicles that they will once again try their hand at car type vehicles. Change in the world is inevitable, but the willingness to change might mean the difference in surviving as a company.

Last thought, from the numbers that I have seen, car sales numbers globally are starting to decline and it is a trend that is suppose to keep moving that way. Joe

[Custom Eyes]

Probably the biggest factor right here.

[RMBin303]

Wow. Great journalism on this one. I especially like the part where they talk about " 23% of Cruze owners and 31% of Focus owners who traded in their car for another car bought from a competitor." Honestly, that is likely the same % as it was 5 years ago - as a whole, people are not brand loyal, especially in cars, and switch brands when replacing their ride.

And then, when talking about what they are going to: Ford and GM customers went for cars like the Hyundai Kona, Jeep Compass, Subaru Crosstrek, Toyota Corolla, Honda Civic, or Kia Forte,

Hello. Hyundai Kona, JeepC Compass and Subaru Crosstrek all fall into the category of SUV/CUV.

The fact remains there are much smaller margins in cars than there is in trucks/SUVs. The new SUV/CUV (like those listed above) get equal or better MPG than a car. And "car" sales are shrinking vs trucks/SUVs.

Ford and GM are doing the right thing by dumping their car production. It is nice to see them make a good decision once in a while.

[CI_Guy]

After Ford announced they were going to concentrate on pickups, SUVs and crossovers, on a drive from OK to southern MN on I-35 my wife and I were counting how many pick-up/SUV/crossovers were on the road compared to sedans. There were times that there were over 30 of them between sedans. We've done the same thing on MN highways with similar results.
We didn't count minivans, Mustangs, Corvettes or Chargers at all.

[Steven Pederson]

cat's out of the bag.
https://www.autoblog.com/2019/11/14/...#slide-2186112

fords new electric.