'The Supremacy of Japanese Cars Has Been 40-Plus Years In the Making' (bloomberg.com)
American business journalist Joe Nocera writes in a Bloomberg article about "how badly things have deteriorated for the U.S. car makers," after the recent news that both General Motors and Ford will soon be exiting the sedan market in the country. Slashdot reader gollum123 shares the report: Much of the analysis about Ford and GM's exit from the sedan market stressed that sedan sales have lost ground in recent years "as consumers have gravitated toward pickup trucks and sport-utility vehicles," as the New York Times put it. If you look at the historical sales figures of the top Japanese sedans, you'll see a small decline in recent years, but nothing like the big drop-off in sales that have hammered the American companies. So in addition to the overall decline in sedan sales, there is a second, largely overlooked, dynamic taking place: Americans have only stopped buying American sedans, not Japanese sedans. The American car companies now say they are going to count on profits from trucks and SUVs while moving toward autonomous and all-electric vehicles. They had better hope that transition takes place quickly.
I couldn't help noticing that while the top three selling vehicles in the U.S. are, indeed, American-made trucks, No. 4 on the list is Nissan's top SUV, the Rogue, the sales of which have gone from 18,000 in 2007 to 403,000 last year. No. 5 is a Toyota SUV, the Rav4 (407,000 in 2017). No. 6 is the Honda CR-V (378,000). And the leading American SUV? It's the Chevy Equinox. Last year, Chevrolet sold 290,000 of them -- 100,000 fewer than the Toyota Camry.
I couldn't help noticing that while the top three selling vehicles in the U.S. are, indeed, American-made trucks, No. 4 on the list is Nissan's top SUV, the Rogue, the sales of which have gone from 18,000 in 2007 to 403,000 last year. No. 5 is a Toyota SUV, the Rav4 (407,000 in 2017). No. 6 is the Honda CR-V (378,000). And the leading American SUV? It's the Chevy Equinox. Last year, Chevrolet sold 290,000 of them -- 100,000 fewer than the Toyota Camry.
Honda just hit 300k miles. You'd be lucky to get 80k from a GM or Chrysler
According to https://www.chicagotribune.com/business/ct-biz-gm-plant-closing-restructuring-20181126-story.html, six models were scrapped at GM: the Buick LaCrosse, the Cadillac CT6/XTS, and the Chevrolet Cruze/Volt (but not the similarly-named all-electric Chevrolet Bolt).
There are still a number of other sedans listed at https://www.gmfleet.com/overview/cars.html including the Buick Regal/Verano, Cadillact ATS/CTS, Chevrolet Bolt/Impala/Malibu/Sonic/Spark, so "exiting the sedan market" seems to be a bit of an exaggeration unless more model cancellations are planned.
The real story here is the job losses and a man in the White House who sold people on the idea that he alone could wave a wand and magically fix them (which means we also get to credit him with a failure to do so).
The reason the US car makers favor trucks is that the japanese trucks have a 25% tarrif since 1973. It's much more profitable for US automakers so they emphasize this category over the thin margins on sedans. Additionally one has to consider the labor and material costs. For some cost structures it's much better to sell one high ticket item over two smaller ticket items, favoring the production of trucks over cars.
Some drink at the fountain of knowledge. Others just gargle.