Are U.S. Small Cars on the Road to Extinction?
Recent reports claim Ford and GM plan to cut production of small cars and sedans in the U.S. Fuel prices are low and sales of pickups and SUV’s are soaring. But are automakers ready if gas or oil spikes again?
Several media outlets report that General Motors plans to end production of its Chevrolet Sonic and Impala models.
Ford may also cut the Fiesta and full-size Taurus.
Both Ford and GM officials counter that those cars remain an important part of their portfolio.
But with fuel prices having dropped, almost two-thirds of Detroit’s Big Three’s sales come from pickups, SUV’s and CUV’s.
Analyst Kristin Dziczek with the Center for Automotive Research says car companies do have a fallback position if fuel prices suddenly spike.
“They will have to make some investment to pullback to sedans and smaller cars. But there is production for those vehicles around the world and even in Mexico that could be brought here if the market suddenly shifts,” Dziczek says.
Fiat Chrysler has already ended production of small cars like the Dodge Dart and Chrysler 200, instead focusing mainly on its Ram trucks and Jeep SUV’s.
