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Discussion Starter #1
The melting away of General Motors

Morici touches on other points not covered in this article:

https://gm-volt.com/forum/showthread.php?328079-GM-is-proof-to-the-world-that-slashing-wages-isn%92t-the-ticket-to-profitability

A sample:

Still, the battle for the sedan and smaller SUV markets indicates just how vulnerable GM and Ford remain to more agile foreign competitors. Since 2015, sales of Impalas and Fusions are down about 49 percent and 45 percent, respectively, whereas Toyota Camry and Honda Accord sales are down only 20 percent and 19 percent.

Japanese sedans simply deliver more value, reliability and verve, and don’t think for a moment the problem does not repeat where car buyers are heading.

The three best-selling vehicles in America may still be U.S. pickup trucks — the Ford F-150, Chevy Silverado and the Dodge Ram — but those are followed by Japanese SUVs — the Nissan Rogue, Toyota RAV4 and the Honda CR-V.
 

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What I’ve always found amusing is the mostsold vehicles are rarely the most reliable
Or best value
Or best efficiency

Imagine if the folks buying the most popular vehicle got a taste of what a truly decent vehicle is?
 

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Ford and Chrysler already announced they are effectively pulling out of the sedan market and with GM’s exit, Asian automakers and Volkswagen will have a clear path to most of the remaining 5 million sedans sold here. And those are often the first cars young folks own and a gateway for manufacturers to hawk their SUVs as careers mature and incomes rise.
This is the fatal flaw in US car manufacturers abandoning sedans. People very rarely change vehicle manufacturers.
 

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Live by the truck, die by the truck?
 

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More like being inflexible in an environment of highly flexible manufacturing is a recipe for disaster.
 

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Live by the truck, die by the truck?
No, I think it's more that the US market is a shrinking fraction of a growing global market, so with a general trend away from cars, and sedans in particular, in the USA, it makes sense for companies who aren't strong in those markets to ditch them while they can.

This year, passenger car sales are well down, some by large amounts.
Toyota Camry -8.55%
Honda Civic -13.45%
Toyota Corolla -10.00%
Honda Accord -12.68%
Nissan Altima -18.88%
Hyundai Sonata -21.80%
Kia Soul -12.51%
Kia Forte -14.13%
Kia Optima -6.59%
Toyota Prius Family -18.09%
Volkswagen Jetta -25.83%
Nissan Versa -30.68%
Mazda 3 -14.40%

Those are some of the best-selling _cars_ in the USA. It's an across-the-board shift.

Meanwhile, crossovers and SUVs are largely up with some significant increases.

They can keep discounting to try and move their product that hasn't competed that well in their segments, while watching the segments shrink, or they can cut their losses and focus on the segments where they're stronger, knowing that they have global product that they can import as necessary.
 

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Let's face it, SUV and Crossover MPG has improved quite a bit. Why buy a sedan when you can get a larger car with very close MPG.
 

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This is the fatal flaw in US car manufacturers abandoning sedans. People very rarely change vehicle manufacturers.
Marketing departments are VERY good at determining where their customer are going and coming from. They may lose a few dedicated sedan buyers to another manufacturer, but what's more likely is exactly what GM's said all along: their customer base is buying CUVs instead.
 
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