- Ford has not sold a sedan in the US since 2018.
- GM says it wants a hybrid sedan back in its lineup.
- Average US new vehicle prices now top $50,000.
Americans absolutely adore SUVs and pickups. To be fair, they’re not alone. Australians feel the same way, and even Europe has largely surrendered to SUVs and crossovers.
Back in the US, the average size of new vehicles has ballooned over the past couple of decades as automakers sidelined traditional sedans in favor of trucks and SUVs with fatter profit margins. Now, though, there are hints the pendulum could swing the other way, and the humble sedan might be due a return, as the Wall Street Journal reports.
Read: Ford Could Bring Back Sedans After Realizing It Can’t Afford Not To
Ford hasn’t sold a sedan in the US since 2018. GM built its last Chevrolet Malibu in 2024. Stellantis, meanwhile, clings to a handful of low-volume sedans, including the electric Dodge Charger Daytona, Maserati Ghibli, and Alfa Romeo Giulia.
Detroit wasn’t forced out of the sedan market purely because buyers changed their minds. US brands also struggled to match overseas rivals such as Honda, Toyota, and Hyundai, which can build these cars at lower cost and still make money. Ford, by its own admission, couldn’t make the numbers work.
At the same time, affordability has become a growing concern. The average transaction price of a new vehicle in the US now tops $50,000, putting added pressure on automakers to reconsider lower-cost options.
Why America Walked Away
Ford boss Jim Farley acknowledged earlier this year that the Blue Oval simply couldn’t compete with Japanese and South Korean brands on small cars. That said, the company is now studying how it might reintroduce a sedan to its lineup.
“The sedan market is very vibrant,” Farley told reporters at the Detroit motor show last month. “It’s not that there isn’t a market there. It’s just we couldn’t find a way to compete and be profitable. Well, we may find a way to do that.” One possibility is building a sedan at the same Kentucky site slated to produce Ford’s upcoming affordable pickup.
General Motors also wants to revive the sedan. GM president Mark Reuss recently said, “I would kill to have a hybrid-electric sedan,” at a company town hall event, adding, “we’re working on how to do that.”
Stellantis is also reconsidering its position. Chrysler CEO Chris Feuell has confirmed the brand is developing a compact car expected to cost less than $30,000, signaling a renewed focus on entry-level buyers.
Can The Numbers Finally Work?
For sedans to stage any sort of comeback, they have to make money. That is the crux of it, and as The Wall Street Journal points out, that has long been the problem in the US. Shifting production to lower-cost countries such as Mexico and South Korea wasn’t enough to save Detroit’s small cars last time around. Even Toyota admits the margins are thin, saying that while it does turn a profit on models like the Corolla, it is “just not a lot.”
Passenger cars, which accounted for roughly half of new vehicle sales 15 years ago, now represent just 18 percent of the US market, highlighting how dramatically tastes have shifted.
Global Scale As Strategy
A key reason why foreign brands have been able to continue selling sedans in the US is their greater global reach. For example, models like the Toyota Camry and Honda Accord are sold in dozens of markets around the world, and this is perhaps something the Detroit Three would need to do to launch new affordable sedan models.
There is also a strategic argument for bringing at least one sedan back. Dealers and analysts have long described small cars as gateway products, giving first-time buyers an affordable entry point before they eventually move up to higher-margin SUVs and trucks within the same brand.
In an era of $50,000 averages, that stepping stone may matter more than ever.
