Analysts predict a move towards more profitable models.
Ford’s recent announcement that it will may not be the last big announcement from the Detroit trio; according to Morgan Stanley ,General Motors Co. may be the next to follow suit. Fiat Chrysler has already moved production of its remaining car models outside of US borders and is increasingly focusing on its Ram and Jeep brands. Ford will soon only be offering the Mustang and Focus Active Crossover next to its truck and SUV models, a logical move when the majority of its sales and profits comes from the ever-popular SUV sector.
Morgan Stanley analyst Adam Jonas says that GM will soon follow this trend. Governmental laws regarding new fuel economy standards will mean that the big three will fight hard for relaxed federal rules to protect their highly profitable and popular truck and SUV businesses. But the need to lower emissions is unavoidable so the disbanding of less profitable segments and their increased focus on electric vehicles may place them in a better negotiating position in the months to come. GM currently has Cadillac, and Chevrolet sedans in its line-up so a trimming down of the existing sedans may mean the end of cars like the LaCrosse as well as the Chevrolet Malibu.
The has recently been axed but three sedans remain with a new model due in 2020 that will replace both the ATS and CTS. So, while they haven’t disappeared just yet, the range is shrinking and Cadillac’s SUV offerings are growing. For now, though, no official announcements have been made but the days of the traditional sedan, at least in the US, are numbered.