This week was a big one for the automotive industry. And that's because there's finally some action on something that's been well known in the space for the past several years.
Consumer tastes have changed.
No longer do buyers want cars. The traditional form factor has, essentially, died out. Personally, I still love a good sedan but by and large people have been swapping out their cars for larger and more utilitarian sport-utility vehicles.
While there's been all-new niches created and SUVs spanning from the entry-level to high-performance categories, I never thought I'd see such a bold move as what came from Ford. It's axing its car portfolio with exception of the Mustang and a Focus due out next year.
Although there's much to ponder on this move, I am more curious about something else. Who's next? Who will follow suit?
There's plenty of companies that could stand to drop some car nameplates from their portfolio but who will strike next? Is it going to be Chevrolet? Could it be Volvo? Acura?
What say you, Spies?
From a MarketWatch story:
The sheer number of cuts at Ford, from seven car lines to two in two years, is unprecedented in the auto industry, although it mirrors what Fiat Chrysler Automobiles NV has been doing in the past couple of years, he said. It is “the right move given where the market for SUVs is today,” Brauer said.
Seven out of 10 cars sold in the U.S. are crossovers, SUVs, and pickup trucks. Such vehicles have made strides in fuel economy, easing driver concern about rising gas prices and gas consumption.
“The price of gas has risen but remains relatively low compared to historic highs,” Brauer said. “More importantly, the difference in fuel efficiency between a sedan and an SUV has contracted over the past 10 years,” and likely about even for most people’s fuel budget.