Hyundai are probably quite happy Ford and GM have stopped making cars
Let's face it SUVs are a big thing. Because, somehow automakers have managed to convince millions of people that their bulbous shaped mommy-mobiles are a worthy purchase. SUVs, especially in America are popular, insanely popular. Roughly 47% of all new vehicles sold in the United States are SUVs, and that number is projected to reach 84% by the end of 2022.
As a result of all this many automakers have begun shifting their focus away from sedans and towards SUVs. However, some automakers like Ford and GM have decided that they should stop selling cars altogether.
A new study shows that nowadays when people think of buying a car they increasingly don't think of Detroit automakers. Because in limiting their model range Ford and GM have inadvertently decreased brand awareness. In my opinion this will be looked back upon as one of the most shortsighted decisions in automotive history.
From the Detroit News :
"Some 42% of Ford Focus and Chevy Cruze compact car owners have stayed in the compact car segment with a significant percentage buying competitors’ vehicles, according to an industry study by Edmunds that finds a deterioration of market share for the Detroit makes, and a decline in brand loyalty."
The same articles goes on to say that this may be advantageous to Hyundai because “There are 6.5 million car owners who do not have a successor sedan for them from their manufacturer. Forty-four percent of those say they want a sedan, so if you look at the raw numbers, there are still a lot of buyers out here,” Hyundai Vice President of Product Planning Mike O’Brien said at a media test of the new Sonata in Phoenix.
As a reult of all this Hyundai has established itself as one of the few entry-level automakers to provide cheap, reliable, and economic sedans. And with many Americans still wanting sedans Hyundai will soon become the go-to option for many buyers.
SUVs may soon be gone
That's right, automakers like GM and Ford are banking on the long-term popularity of compact crossover SUVs, however, that market cannot go on forever. The US has always had periods of extreme growth in the family vehicle segment, with it shifting from station wagons, to minivans, to sedans, and now SUVs.
See, the issue is that for one reason or another consumers fell out of love with their segment of choice. And with the current SUV craze pushing on 15 years you have to ask, when will all this come to an end? Whether it be an economic crisis, or the stigma of the SUV will finally take hold. And when it does GM and Ford will be kicking themselves whilst figuring out how much it will cost to start producing cars again.