On Wednesday, global leader in the automobile market, Ford, stated that it will only stick with two of the new cars in coming years. It presently has a huge demand for its Mustang, while Focus Active has been already introduced in Europe and to some extent resembles Buick Regal TourX and Subaru Crosstrek.
On the other side, General Motor also seems to have similar approach and is operating on the trails of Ford.
Chuck Stevens, CFO of GM while addressing the reporters post-release of Q1 earnings said, “We have been on this same path for long years.”
It has been noted that the biggest successes of Fiat-Chrysler have been in SUV segment in latest years, and as a proof of growth, its Jeep brand can be considered.
In our view, eliminating North American car portfolio of Ford makes an optimistic sense, said Morgan Stanley analyst, Adam Jonas.
General Motors manufactures a considerable number of cars and at present Chevrolet on its own sells around 12 cars including Corvette. There are also some rumors that will cut and end production of some of those. Cadillac has multiple sedans dealers and observers that it happened to missed the trend of crossover.
However, even though American automakers are restructuring their lineups, sedans will still remain to play a considerable role in the total sale of vehicles in the US for projected future. Since last some years, passenger car segment has witnessed a considerable drop. However, in the international markets, small cars take a considerable part of the total sale in the United States.
The United State’s second-largest automaker is also in plans to revive its existing portfolio of vehicles consisting crossovers and SUVs and come out with new development to fill the gaps in the market. Which means the automaker will give effort on tweaks and combination of features to innovate a totally new segment.