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This was essentially what happened in late 90s/early 00's, and the subsequent rise in oil prices and '08 recession led to the bankruptcy of American auto compan

This was essentially what happened in late 90s/early 00's, and the subsequent rise in oil prices and '08 recession led to the bankruptcy of American auto companies that had stopped producing fuel efficient cars. The taxpayer-funded bailout included a stipulation that increased their fuel economy standards; that part of the deal is now being reversed by the current administration.

adam 9y ago
Thanks for commenting about this - I don't understand why there isn't more commentary about Ford deciding to drop sedans. It seems like someone is way way behind on the forecasting game. Just as oil prices are going back up and the demand for fuel efficient vehicles will increase, they're doubling down on...gas guzzlers.
- cityofdelusion 9y ago
  Crossover vehicles (misleading labeled as "SUVs" by the industry) have largely replaced sedans in the last few years. Think vehicles like the Nissan Rogue, Ford Edge or Honda CR-V. These vehicles are essentially lifted sedans or hatchbacks with a slightly taller body. They have nearly identical combined fuel efficiency compared to economy sedans. I don't think there is much risk in the industry. Sales of full-size SUVs of yore (the gas guzzling V8s based on full-size trucks) are down, people want the newer, smaller, lighter 4-cylinder crossover and it will end the sedan era. Ford isn't alone here either -- every manufacturer is pumping out models of crossovers based on sedans. Sedans are either pivoting into territory that sportier cars used to occupy (Toyota Camry) or morphing into entry luxury vehicles (Honda Accord). Even with this pivoting, year-over-year sales of cars like the Nissan Altima and Honda Accord are significantly down. Real example: Mazda 3 sedan vs Mazda CX-5 crossover SUV. They use the exact same 4 cylinder engine pushing 155 horses. The sedan gets 30/41 mpg and the crossover 26/35. People aren't going to give up their higher ride height and comfy seats for 5 mpg. Another example to consider is that sales of crossovers are way up in europe, despite having gas that costs nearly double that of the United States. Ford is making a logical move. Their 4 cylinder ecoboost engines are efficient and they want to introduce hybrid drivetrains, even on their muscle car.
  - rconti 9y ago
    And sedans like the Taurus have become fat pigs anyway. And a Ford Fusion is the same weight as a Ford Escape. (Yes, theoretically different size vehicles, but consumers LOVE pretending like their SUVs have more space than they do, and to a certain extent they 'feel' bigger due to greater distance between floor and ceiling.. and neither vehicle has 3 rows of seats, so....)
rkangel 8y ago
At least now, Ford has a very healthy international business where they will continue to sell what we would refer to as saloons and hatchbacks. This means that should they ever wish to start selling sedans in the US again, there is a much lower barrier to doing that.
abrichr 9y ago
Source: http://fortune.com/2018/04/02/donald-trump-epa-fuel-regulations-cut/ http://fortune.com/2018/04/02/donald-trump-epa-fuel-regulati... > The Trump administration announced that fuel-efficiency regulations for cars and light trucks are too stringent and must be revised, beginning a process sought by the U.S. auto industry to roll back anti-pollution targets. >The EPA also said it was considering whether to revoke the waiver that allows California to set its own emissions rules that are tougher than the federal standards.

adam 9y ago

Thanks for commenting about this - I don't understand why there isn't more commentary about Ford deciding to drop sedans. It seems like someone is way way behind on the forecasting game. Just as oil prices are going back up and the demand for fuel efficient vehicles will increase, they're doubling down on...gas guzzlers.

cityofdelusion 9y ago
Crossover vehicles (misleading labeled as "SUVs" by the industry) have largely replaced sedans in the last few years. Think vehicles like the Nissan Rogue, Ford Edge or Honda CR-V. These vehicles are essentially lifted sedans or hatchbacks with a slightly taller body. They have nearly identical combined fuel efficiency compared to economy sedans. I don't think there is much risk in the industry. Sales of full-size SUVs of yore (the gas guzzling V8s based on full-size trucks) are down, people want the newer, smaller, lighter 4-cylinder crossover and it will end the sedan era. Ford isn't alone here either -- every manufacturer is pumping out models of crossovers based on sedans. Sedans are either pivoting into territory that sportier cars used to occupy (Toyota Camry) or morphing into entry luxury vehicles (Honda Accord). Even with this pivoting, year-over-year sales of cars like the Nissan Altima and Honda Accord are significantly down. Real example: Mazda 3 sedan vs Mazda CX-5 crossover SUV. They use the exact same 4 cylinder engine pushing 155 horses. The sedan gets 30/41 mpg and the crossover 26/35. People aren't going to give up their higher ride height and comfy seats for 5 mpg. Another example to consider is that sales of crossovers are way up in europe, despite having gas that costs nearly double that of the United States. Ford is making a logical move. Their 4 cylinder ecoboost engines are efficient and they want to introduce hybrid drivetrains, even on their muscle car.
- rconti 9y ago
  And sedans like the Taurus have become fat pigs anyway. And a Ford Fusion is the same weight as a Ford Escape. (Yes, theoretically different size vehicles, but consumers LOVE pretending like their SUVs have more space than they do, and to a certain extent they 'feel' bigger due to greater distance between floor and ceiling.. and neither vehicle has 3 rows of seats, so....)

rkangel 8y ago

At least now, Ford has a very healthy international business where they will continue to sell what we would refer to as saloons and hatchbacks. This means that should they ever wish to start selling sedans in the US again, there is a much lower barrier to doing that.

abrichr 9y ago

Source: http://fortune.com/2018/04/02/donald-trump-epa-fuel-regulations-cut/ http://fortune.com/2018/04/02/donald-trump-epa-fuel-regulati... > The Trump administration announced that fuel-efficiency regulations for cars and light trucks are too stringent and must be revised, beginning a process sought by the U.S. auto industry to roll back anti-pollution targets. >The EPA also said it was considering whether to revoke the waiver that allows California to set its own emissions rules that are tougher than the federal standards.