Fiat Chrysler Automobiles and General Motors are following Ford’s lead in cutting back on their sedan production to focus on more profitable SUV and truck sales.
With less competition, Toyota, Honda, Nissan and Hyundai ought to be able to raise prices and squeeze a bit more profit out of their traditional cars.
“We have already seen that Toyota and Honda have held relatively strong in car sales as the market has switched over to utility vehicles,” said Michelle Krebs, senior analyst at Cox Automotive, the parent company of AutoTrader and Kelley Blue Book. “They seem to be the main go-to brands as people — a smaller number of them — stick with cars. I would expect that trend will continue.”
Read the article at Forbes.
