So, here’s a funny one: a bunch of carmakers who don’t really make cars. Sound illogical? It is shaping up to be the future of the U.S. automotive industry, at least in the near term.
Consider also, that Apple Computer’s revenue is made up mostly by sales of phones, and you might start to see where this is going.
Ford was first to announce it’s going to gut cars from its lineup, with the exception of Mustang sports cars. GM also thinks it’s a good idea, as manufacturers salivate over a higher-profit, all-truck offering.
Question is, are consumers ready to buy only SUVs and trucks from now on? They are indeed very popular, but moves like this essentially cede the entire low-priced car market to foreign car companies. So is the U.S. auto industry reading the tea leaves, or trying to force their view of the market on a consumer that’s not inclined to accept it?
The maker of Chevrolet, Buick and Cadillac sedans might mimic Ford Motor Co., which is keeping only the Mustang muscle car in the lineup, and Fiat Chrysler, which no longer manufactures sedans in the U.S., Morgan Stanley analyst Adam Jonas said Friday.