Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Leaning Right

GM and Ford seem to think that the only market is for SUVs and trucks. If you want a sedan, you have to go with the Japanese, Koreans, or Europeans.


18 posted on 07/17/2021 12:43:59 PM PDT by reg45 (Barack 0bama: Gone but not forgiven.)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: reg45
There was a Ford guy here on FR who once explained the bizarre truck/SUV vs. car dynamic for the U.S. automakers here.

Basically, it's the fuel efficiency standards that have driven GM and Ford out of the sedan business. The complex factors are this:

1. In order to meet the U.S. fuel efficiency standard for cars, these companies must sell a large number of compact cars to drive up their average fuel efficiency ratings for their combined fleets of compacts, mid-sized cars, full-sized cars, etc.

2. With UAW labor, these companies can't price their compact cars competitively. Interestingly, their biggest competition for Ford and GM compact cars isn't compact cars made by foreign companies, but mid-sized cars and small SUVs made by Ford and GM. A UAW-made compact car would be priced at $25,000 (for example), so the typical customer realizes that they'd rather just pay another $5,000 to $7,000 for a bigger/better car, or another $10,000 for a small SUV.

3. Since Ford and GM would have to sell the compact cars at a loss just to meet the average fuel efficiency standards for their car fleets and/or make them in Mexico and China with non-UAW labor (and cause major labor strife in the process), they figured it was easier just to get out of the car business entirely.

25 posted on 07/17/2021 1:08:16 PM PDT by Alberta's Child ("And once in a night I dreamed you were there; I canceled my flight from going nowhere.")
[ Post Reply | Private Reply | To 18 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson