The sedan market is dying: Auto dealer

The sedan market is dying: Auto dealer


STUART: FORD CUTTING SEDANS THAT WOULD BE CARS, OUT OF ITS LINEUP, ALMOST COMPLETELY. FORD SAYS IT WILL FOCUS ON SUVs AND TRUCKS. CAR AND TRUCK COUNTRY WILL JOIN US. STEVE,.>>GOOD MORNING. STUART: WHAT IS WRONG WITH CARS? THEY DON’T SELL?>>THEY DON’T SELL. THAT IS THE WHAT IS WRONG WITH CARS. THE PUBLIC WANTS SPACE, TO HAVE FREEDOM. A CAR HAS BECOME THE DEFINITION OF RESTRICTION. STUART: IS THAT TRUE OF YOUR BUSINESS? YOU SAW ACTUAL CARS, SEDAN SALES DOWN OR JUST NOT UP TO WHERE YOU WANT THEM TO BE, LIGHT TRUCKS AND SUVs IS WHERE THEY ARE GOING?>>SEDAN MARKET IS ERODING FOR YEARS. WHAT FORD HAS DONE, WE’RE NOT PLAYING IT THE SAME OLD WAY. WE USED TO HAVE ENTRY LEVEL CARS. I SAY ENTRY LEVEL CARS ARE CERTIFIED PREOWNED. BRING SOMEBODY IN THE DEALERSHIP. START WITH THE FIRST SMALL FORD TO GRAVITATE. AFTER YOU HAD FIRST SMALL OF ANYTHING YOU GO LOOKING FOR SOMETHING BIGGER SOMEWHERE ELSE. STUART: THE ONLY REASON FORD CAN DO THIS, BECAUSE PRESIDENT TRUMP WANTS TO GET RID OF THESE GASOLINE MILEAGE RESTRICTION.>>BUT FAIR, THE GASOLINE MILE RESTRICTIONS ARE THERE BUT FORD’S MEETING THEM WITH THEIR PRODUCT MIX. THE FUSION WILL GO AWAY SOME DAY. IT IS REPLACED BY A CROSSOVER THAT GETS ABOUT THE SAME GAS MILEAGE. THE ENTRY LEVEL FORD ACTIVE, FOCUS, THE ACTIVE IS GOING AWAY, BUT THE ENTRY LEVEL SPORT CROSSOVER WILL GET ABOUT THE SAME GAS MILEAGE. THERE USED TO BE A BIG ARBITRAGE BETWEEN GAS MILEAGE OF SEDANS AND SUVs. IT HAS NARROWED. STUART: WHAT ABOUT CERTIFIED PREOWNED CARS, I SEE A LOT OF THEM ALL OVER THE PLACE. I’M TALKING ABOUT CARS, CERTIFIED PREOWNED.>>THERE IS A LOT OF THOSE. THINK ABOUT WHY. WHY? BECAUSE THEY’RE SOLD A LOT TO RENTAL CAR COMPANIES. THEY ARE THE EXTRA INVENTORY. THEY’RE JUST NOT PROFITABLE AS NEW CARS. SOME ARE, BUT NOT AS NEW CARS. CERTIFIED PREOWNED A BRAND NEW BRAND. WE DO VERY WELL WIT. STUART: TELL ME ABOUT MINIVANS? DURING THE COMMERCIAL BREAK WE WERE TALKING ABOUT THE MINIVAN MARKET. YOU SAID PEOPLE ARE NOT BUYING THEM IN THE SAME NUMBERS ANY LONGER.>>THE MINIVAN MARKET IS LIKE THE HAIR ON MY HEAD. IT HAS SHRUNK A GREAT DEAL OVER THE YEARS. STUART: I DON’T UNDERSTAND THAT? I DRIVE A MINIVAN.>>SOCCER MOMS, A TERM, WE HAVE MINIVANS NOW. THEY’RE JUST CALLED CROSSOVERS AND SUVS. MINIVAN IS PEOPLE CARRIER. TAKE THE SQUARE BOX OFF OF IT. PUT A VERY ATTRACTIVE PACKAGE AROUND IT, IT IS NOT A MINIVAN ANYMORE. IT’S AN SUV. STUART: ARE YOU REAL HAPPY WITH FORD’S DECISION? SOUNDS LIKE THIS IS FINE WITH YOU.>>IT IS FINE WITH ME. SOME CUSTOMERS WILL NOT BE HAPPY BUT THEY WEREN’T HAPPY WHEN THE GRAND MARQUEE WENT AWAY. THE REALITY IS, THE SEDAN MARKET IS DYING. WE’RE MAKING HUGE INROADS AT FORD AND OTHER MANUFACTURERS I REPRESENT IN MILES PER GALLON. THIS IS AN ESSENTIAL DECISION TO BE MADE, AND A GOOD DECISION FOR

About the Author: Michael Flood

64 Comments

  1. Millennials can't afford new cars anymore, not that we don't want them. Wages are too low and vehicle prices are too high. Quit stuffing useless electronics we don't want into vehicle to jack up prices and you might sell more new vehicles.

  2. Talk with your feet and your wallet people. Support companies that still make sedans like Toyota and Honda and GM

  3. Get this i am not a tree hugger or anything but i buy small and efficient i do not use my AC unless its really hot in traffic and i never leave my car running whats up with everyone leaving there car running we must be kind to morher earth for she will shit on us and i think she already is

  4. I've been driving SUV's and trucks since the 90's. Car are useless. My company cars have moved to SUV's as well.

    Ford's reasons are different, they haven't made a decent car since forever.

  5. Trying to buy a new light pick-up a year ago was a real eye opener. Had to wait for mine to come in from the manufacturer cause there was virtually no selection. Sedans as far as the eye could see. They need to make what people want.

  6. I have a toyota tacoma 22r 1996 and rebuild the engine after 300000 most new cars can't even compare to the simplicity and relaiblity of old cars at least i can work on the damn thing 😁

  7. Try selling this same line of crap to KIA and Hyundai that thier cars aren't selling. Its a lie…and since I now drive a KIA..I realize how over priced over hyped Fords were..as I bought them and owned them for over 30 years. Ford Dropped the ball years ago…when they became lazy…and KIA and other car manufacturers took over. Ford is on the way out is the real story here.

  8. Anything that involves a dealership is dead to me. I used to purchase new vehicles like changing sox. It was a sickness! Now I buy nice, used vehicles, cash only and drive them forever. I've got a 96 pickup with 147k mikes and a 03 Euro sedan with 212K. Money in the bank!

  9. Nuts! This because of Ralph Nader and his book entitled "Unsafe at Any Speed." It aimed Nader's bile at the Corvair built by GM. After that, there was an avalanche of regulations on sedans and station wagons. They cost a great deal more than the so-called "sport-utilities" for one reason and one reason alone–regulation by the State of California and its follow on entity, the Federal Government of the United States. Free enterprise my sweet left bippy!

  10. The car manufacturers have killed the full size sedan years ago. People were forced to go to Vans and Mini-Vans, trucks and SUV's and CRV's to get the space they wanted. America's car manufacturers followed the smaller size foreign sedans starting around 1985 for GM and Later for Ford. People still want a full size car. The Mercury Grand Marquis and other full size sedans could still easily be sold if they were the same size as the 1970's models. It could have been easily done with no lose of body size and interior room using today's high output 4 and 6 cylinder engines. But, American car manufacturers got greedy by downsizing while at the same time hiking retail sticker prices beginning in the late 1980's.

  11. I'm mildly disabled and mid-sized sedans are the only thing I feel comfortable driving. They REALLY need to rethink this and consider things like that.

  12. Cars (especially small ones) are sold to millennials. Millennials are broke. We are buying used Japanese cars that are 10-15 years old and barely getting by. 30+ year olds graduate to large sedans and SUV's after a few children. Ending the manufacture of small cars are a temp fix. The problem will catch up within a decade when you have nobody to sell SUV's and trucks to. Eventually, we will all be buying used fleet vehicles.

  13. Why is Toyota and Hyundai still selling tons of cars and also SUVs?
    Ford is pointing their finger and not taking responsibility.

  14. this happened in early 2000 already. remember the escalade, tahoe, hummer, and all the other suv. remember the spinning rims black people put on those shit. lmao.

  15. Car company's trying to get rid of their gas powered cars so they don't get stuck with them .
    Before they start selling Electric cars .

  16. Sedan market is not dying hyundai/kia Acura,Honda producing a way better car with better reliability and selling way more than ford.

  17. Bullshit. Japanese and Korean car companies still make money selling sedans. It's the incompetent American car companies that fail at this.

  18. Maybe you're putting too many things that people don't want and their car designs using the same model year have made the cars a little bit higher

  19. And when gas prices go over $4 there going to want to be rescued by the government. We've seen this movie before only 10 years ago.

  20. If you cant sell them in the usa, then sell them to us in europe :D. Or bring the crow vic back with a better mpg. Would like to have one in germany.

  21. I have worked for Ford for 20 years building the Ford Focus & Cmax hybrid. I have ONLY bought Ford CARS since I've been driving. This is a HUGE mistake! I cannot afford a new truck. They cost way too much & cost too much for gas. This is a mistake in my opinion. I will never buy a Focus built in China. Non UAW vehicles are not an option for me. Completely against everything the UAW stands for. Not everyone wants a Truck or a mustang. What about kids just starting to drive?! Now they have to drive trucks also? Big mistake Ford. Shame on you

  22. It boggles my mind how disconnected ford is with their buyer base…the people who buy youre trucks and suvs are mostly older who can afford the price…guess what happens when they die off and you don’t have a young buyer base to fill their shoes…yes, this will Mabey benefit ford in the short term but will kill the customer base in the long term if you cut affordable entry level cars. The Germans figured this out years ago, that is why they released entry level cars from luxury brands…the entry level buyers of today will be your buyer base of tomorrow.

  23. Sad thing is that the majority of people who drive SUV´s use it as a glorified grocery getter. Hardly will you ever see them going around the woods tackling a difficult terrain. Reality is that SUV´s have become status symbols.

  24. why buy a new 2018 sedan for $30,000 when you can buy a $3,000 sedan that will do the same thing the 2018 does and work just as well?

  25. Stupidity abounds. Cars are more econ, more stable, Better MPG. Costs less. Wait till fuel costs rocket again. They WILL want cars and who will have the market share then. Ford , Gm , and Dodge will play ketchup again.

  26. Seems the European and Japanese car manufacturers are doing their own thing yet American car companies are too busy copying off them instead of going back to their roots that's why they're failing. They're making cars the size of Hondas and with hardly any leg room and calling them "full size", they've made the V8 engine something rare that you can only get in a sports car or a very expensive car instead of offering them as an option in most of their lineups, they went from offering affordable cars to the every day man to basically trying to jam every useless luxury feature and electronic in all their models even cheap budget models. They haven't stopped to think that maybe the reason trucks sales haven't suffered is because they haven't drastically changed designs or scaled back what you could get offered in a truck yet they seem to want to offer you less car for more money with little options to choose from as far as power trains and hardware.

  27. The management at Ford are short sighted by announcing non production of cars by 2020. The main reason Ford is not selling enough cars is that they have failed to update interior styling.
    In Australia, Ford Falcon and GM's Commodore were the best selling sedans, not only to the every day user but to Law Enforcement Agencies, hire cars and taxis. Since the two companies were forced to close by the US parent company, sales have fallen by 4-5% for last 2 years. Furthermore, the cost of the smaller vehicles and SUV'S have increased in purchase price meaning those on high incomes can afford them. The basic Ranger costs AU$50,000, XLT Ranger $59,000 plus and the Everett starts at $68,000 plus. The Mustang is over the $110,000 plus. Most people I speak to are going to keep their cars longer and no-one likes the autonomous vehicles.

  28. Honking car locking wakes people up and creates Stressful Noise Everywhere. Even in serene places like parks and beaches. Please lock your car quietly with light flash only. Thank you.

  29. It's all to do with profit margins. They know they can't compete with japan or Korea, but then there's China coming next. Entry level cars will all be Asian. Why fight over scraps when they can compete for the cream…… SUV PICKUP TRUCKS

  30. Whoever continues to sell sedans gets my money. I guess this will leave the market for more competent companies to come in and take over. This seems like the last desperate gasp of the fossil fule industry.

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