Ford Motor recently shocked the auto industry when they announced the plans around axing a majority of small and mid-sized models within their North American lineup; leaving only Ford’s Mustang, Active, and some crossovers and pickups moving forward.
Is this the end of the sedan’s reign in the auto world? Perhaps for Ford, but when it comes to General Motors, there is hope.
The Drive recently reported that GM CEO and Chairman Mary Barra recently discussed why their company feels good about its sedans and hatchbacks (for now), during a conference call with media to talk about the company’s first quarter. While this market does continue to downsize, since 2015, GM has invested quite a bit of funds into refreshing these types of models and Barra believes the company has a strong lineup that won’t need much updating (or money added) for a few years to come.
As Barra relayed, the company still views these models as an opportunity, despite their decline in popularity.
And Barra may have a good point: hatchbacks and sedans currently represent one-third of all auto sales in the United States, and Ford’s decision to ax these models relates more to timing and cost around redevelopment of an older line up, versus auto trends.
Still, just because GM is keeping their sedan and hatchback lineup, doesn’t necessarily equal out to no big move-making this year when it comes their models. It’s been reported that they plan on bidding adieu to the Chevrolet Sonic subcompact sometime this year and the company has cut production of their Cruze model (due to decreased demand).
In fact, Chief Financial Officer for GM, Chuck Stevens recently commented that his team examines the cost of producing each car model on a “weekly” basis.
The auto world is a highly competitive market and a commitment to car lineups and staying abreast of vehicle trends is a must. While Ford had to do, what they had to do, GM might be on a good momentum wave to keep their sedans and hatchbacks on the market for the demographic sector that still values these types of cars.