Because of low gas prices, people are trading their small cars for large trucks and SUVs. Back in 2013, the US car market was split between cars and trucks, but trucks have seen a massive boom in popularity. Automotive News reports that through May 2018, trucks outsold cars by two-to-one.
Automakers like Ford are changing their strategies, killing off small sedans and hatchbacks to focus on SUVs and mid-size trucks. Many experts predict that truck sales will continue to grow well into the next decade. As trucks become more popular, cars are experiencing their worst sales year in decades. The US auto market is on pace to sell 5.3 million cars this year, fewest than in 1958. Data from Edmunds shows that 53 percent of people who trade in their car replace it with another car, not an SUV or truck.
Some car makers are better equipped to handle this change in consumer trends, while others may start to feel a crunch. Mitsubishi has shifted its lineup to focus on crossovers, and Ford has discontinued sedans altogether. Other companies like Chrysler and Hyundai’s Genesis brand don’t have any crossovers and could suffer as a result.