[WorldMaker]

I think the better question is what's so wrong with the SUV/Truck market that they don't have to compete on TCO? That they still rake in so much in year over year maintenance costs? That the purchase horizon for most SUV/Truck owners seems to be ~4-5 years versus the ~10-15 year lifetimes that sedan owners demand/expect?

Isn't doubling down on the higher profit margins of SUV/Trucks an admittance that GM and Ford (and their more powerful shareholders) can't see far enough past the short term to compete in the sedan market? What happens if a correction happens in the SUV/Truck market that the time horizon starts to reflect sedans (again)?

[ip26]

I think the better question is what's so wrong with the SUV/Truck market that they don't have to compete on TCO?

The chicken tax, as discussed elsewhere in this thread. 25% tariff on imported trucks means domestic trucks have almost no foreign competition.

The one place they do, the compact/mid-size market, is totally dominated by the Tacoma (which sidesteps the chicken tax with domestic assembly), which is coincidentally famous for being an exceptionally reliable truck...

[twblalock]

> What happens if a correction happens in the SUV/Truck market that the time horizon starts to reflect sedans (again)?

I guess GM and Ford would just start making sedans again?

They could switch back. A lot of the crossovers are built on lifted sedan platforms anyway.