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Slow Non-SUV Sales Prompt Ford, GM To Rethink Passenger Car Business

Ford C-Max 1 photo
Photo: Ford
There’s a general rule in the automotive industry that goes like, “the only constant is change.” The adage stands true to this day, an era that sees passenger cars fall out as demand for sport utility vehicles keeps growing.
Citing insider sources close to the Ford Motor Company and General Motors, The Detroit News reports that FoMoCo and GM plan on trimming their passenger car lineups as a means to an end. The end is streamlining production costs and redirecting resources on utility vehicles.

Maximizing profit is of the essence, and there will be bloodshed. One of the cars that's expected to not live on to see an all-new generation is the downright woeful C-Max. Also at Ford, the future of the Taurus is uncertain, and the Fiesta is as good as gone from the Dearborn-based automaker’s American stable.

Things at General Motors look even crummier. There’s uncertainty surrounding the Chevrolet Sonic, Cruze, and Volt, whereas the Impala, Buick LaCrosse, and Cadillac XTS are also expected to grind to a halt. Despite slow sales compared to the S-Class and 7 Series, the Cadillac CT6 will live on for the foreseeable future, new 4.2-liter twin-turbo V8 and all.

In hindsight, it’s Fiat Chrysler that started the trend by ending production of the Dodge Dart and Chrysler 200. Hyundai joined the bandwagon for the 2018 model year, officially confirming that the Azera isn’t relevant anymore in the face of the Sonata and the luxury-oriented Genesis G80.

“It comes back down to shareholder value,”
believes Joe McCabe, president and CEO of AutoForecast Solutions. “If you can push more-profitable crossovers, SUV and trucks, basic math says that you’re going to improve profitability and therefore shareholder value,” he concluded.

There’s a silver lining to this story, however, and it isn’t the innate greed of U.S. automakers. It’s their ability to respond proactively to imminent changes in the market. All in all, taking action before things turn completely sour is the safest way to go in the cutthroat world of building and selling cars.
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About the author: Mircea Panait
Mircea Panait profile photo

After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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