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Are any manufacturers making money with traditional cars?


#1

I read often these days that such-and-such manufacturer is scaling down or ending production of traditional non-SUV cars due to low profitability, but I’m curious whether there is any indication that some manufacturers are managing to turn enough of a profit to not have this be an immediate concern? Looking at volume producers here, not luxury. Are we going to end up with survival of the fittest in the car market (in terms of production efficiency and sales), or is everyone going to quit on cars?


#2

Honda, Toyota, Subaru, Mazda still sell oodles of cars. 2/3 Teslas are sedans. BMW. Mercedes.


#3

Any Japanese automaker (Except Mitsubishi)
Any German automaker
Some high-end luxury car manufacturers
Some sports car makers
Some supercar makers


#4

http://www.wsj.com/mdc/public/page/2_3022-autosales.html

I’m not going to pretend to understand much of that, but it looks like except for a few brands/models the car market is shrinking.

Toyota/Honda have had a solid following for a long time due to their long term reliability.


#5

image
(Ford’s sales over the years)


(Honda)

Of course manufacterers are still making money from traditional cars, as they are some of the best selling, The Toyota Camry/Corolla, Honda Civic/Accord are still among the best selling cars in America, however it’s quite easy to see that the market for these “traditional” cars are rapidly deteriorating while SUVs and trucks grow in popularity. Any business person with sense would pursue the growing market rather than the declining one. Espically as global automotive sales have peaked and markets will only become narrower. Production lines, no matter how much money they make, need to be scaled back to accommodate less demand, and we have recently seen combined SUV/Truck sales surpass traditional car sales in the past 5 years, and this is a trend we will likely only see continue into the future.

Of course, as is clearly obvious, 5 million+ cars is still a LOT of money to be made, So if your concern is all companies within the next 5 years following in Ford’s footsteps and flat out cancelling their traditional sedan lineups, I cannot say I see that happening as an individual speaking. However long term I do see the need for these cars to either appeal to the new trends in the market (as ford has done with the focus) and “crossover-ify” so to speak, or be slowly eased into obsolescence as with the dinosaurs of the old car world such as the Crown Victoria.


#6

Semi-OT but if we’re strictly speaking of the NA market they won’t be getting the Focus Active either anymore due to the recent tariffs and low-ish predicted sales. But yes Ford is doing this Active trim outside NA for models like the Ka+ and Fiesta as well.