geko29

Back on topic...I think the outcome is more nuanced than the headlines (or articles) get into, but don't have enough information to know where it's truly falling. If a Cruze customer is going to Honda and buying a Fit, that's the unprofitable customer that GM didn't want anyway. If, on the other hand, a Focus customer is going to Toyota and buying a RAV4 (rather than a Corolla), that's a lost opportunity for Ford to upsell into a more-profitable CUV.

JDR76

This data seems to show that the assertion that GM is forcing people to buy CUVs/SUVs is incorrect. They’ll just move elsewhere to buy the sedans.

bitkahuna

iTrader: (20)

Clearly when models or entire categories of vehicles in a brand are discontinued, owners of those vehicles wanting something similar next time are going to have to shop elsewhere. Duh.

But like geko says, it’s not that simple, because many owners of those vehicles go to something completely different either in the same brand or other.

and while there are clearly chunks of buyers who remain (often completely blindly) brand loyal purchase after purchase, there are bigger chunks who couldn’t care less about brand and look around every purchase and aren’t very predictable.

this is just another overly simplistic “i told you so” thread.

UDel

This was totally predictable. SUV's/CUV's being bought in such high numbers is a trend, trends come and go. It was very stupid to just eliminate a entire lineup of vehicles you sold for decades just for a trend, you lose a bunch of customers doing that initially, and also lose future customers when trends go back. A 4 door sedan is never going to fall out of favor with consumers, it may not sell in as high numbers, other vehicles may sell more for a period of time but it is always going to be a type of vehicle that a very large percentage of buyers is going to want and is important to your lineup. It is better to try and make desirable sedans and smaller vehicles then to just kill them and focus mainly on one type of vehicle that may be hot for a period of time.

mmarshall

Of course, people can (sometimes) move somewhere else....at least on paper. But, in reality, and practical life, that's not aways possible or easily done. Some brands have very sparse dealer networks, and it may very difficult to find one within reasonable distance. Others are not worth going to because of incompetent or unfair sales or service-policies. Other people, who are burdened down by family responsibilities and other issues, don't have the time to spend a lot of time shopping...one reason, of course, why I help people out myself. While it may not involve holding a gun to one's head, like it or not, there is sometimes a certain amount of "forcing" in it just from realistic circumstances.

4TehNguyen

iTrader: (1)

entry level cars are gateway cars for the brand, by not having these you dont build the brand loyalty and now people are going elsewhere.

mmarshall

First, besides cost, how would you define "entry-level"? An entry-level Porsche 718 (Boxster), for example, costs almost 60K. And remember that people often don't become brand-customers by their smallest to least-expensive models. For instance, if I was to trade my Lacrosse for a Toyota, it would probably be for an Avalon, not a Corolla or Yaris LOL. Or, if for a Kia, it would be for a Cadenza or K900, not for a Rio or Forte.

Toys4RJill

For the record, I don’t think Cruze and Impala are actually cancelled. So people are leaving anyways.

mmarshall

Cruze production ended last March when the Lordstown plant closed. Impala production, at Hamtramck, is scheduled to cease by the end of the year....though how much the recent strike will change that schedule (if any) is to be determined.

Toys4RJill

Cruze is still made is Mexico is what I meant. Meant Malibu and not impala.

bitkahuna

iTrader: (20)

Quoting just the clickbait headline ignores the whole article which is a lot more complex and fact filled. Facts such as:

• The article is only about Cruze and Focus.
• Some compact car owners stayed in the respective brand anyway and went to SUVs.
• Compact cars represent just 9% of passenger car sales.

The article also has the sub headline of:
“GM, Ford Sacrifice Loyal Buyers by Abandoning Small Cars”

Loyal? The article’s only talking about people who sold their Cruze or Focus... there’s no info to say whether they’ve been ‘loyal’ (i.e., repeat buyers) or just had the one compact GM or Ford.

Also, it’s important to note that there’s almost NO money for dealers or the manufacturers in compact cars. Yes it’s true that those buyers may then stay with the brand and move up the model chain but those Cruze and Focus owners can STILL do that and clearly a ton have. But yes, obviously GM and Ford won’t have new Cruze and Focus buyers for the foreseeable future but I really don’t think they care, and I really think that any lost SALES isn’t hurting their bottom line and to keep factories and work forces going to make unprofitable vehicles is just a drag on the business.

Finally, the article talks about lack of affordable GM’s and Fords now they’ve dropped those models. Well hello used car market... the market is FLOODED with low mileage vehicles of all kinds, making entry compact new car sales even more challenged.

about the corolla and civic, they’re actually FAR from compact these days, each the size of Accords and Camrys from the not too distant past.

But selling against those two is really hard and the Cruze and Focus were losing ground anyway so better to focus (ha) on where they can win and where there’s potentially more profit.

mmarshall

Of course it's (mostly) about the Focus and Cruze....that goes without saying. Those two vehicles form (or previously formed) the bulk of the Ford and GM small-car market in the U.S. And I don't consider 9% an insignificant number, considering the total tens of millions of new vehicles sold every year, and the percentage of those numbers to passenger cars.

Felix

x2.......
Bingo^^^^^^.........Ford knew about the want to be dct issues way back in '10. First drive back in early '11, thought something was wrong, so I drove another one, nope.....At the very least Ford could of thrown in the older 4 spd, yea it wouldn't of gotten the mileage, but Ford wouldn't have all the issues that they had w/ the faux dct vs going on right to begin with, but that would of bumped the price up for a compact mass produced vehicle.

Felix

Yea, Ford & GM is making a big mistake, Ford already have a mk4 Focus....There are some ppl that want cars as well....

Toys4RJill

If you really examine a Ford Escape, it’s just a taller hatchback....same with a Trailblazer, Hyundai Venue and Nissan Kicks...a Mazda CX30 is just a raised hatch. I get why the cancelled future $$ for sedans....consider the Corolla, Toyota forecasted that the new updated Corolla would be down 100,000 units after the redesign, people move on to RAV4s but because the Corolla sells at such a high volume, the Corolla is down to 275,000 units compared to 375k in the past....Ford Focus, Fusions and Cruzes and Impalas are nowhere close...even combined.