[dashundchen]

I think it comes down to profit. Eliminate all the base models, keep moving bigger and more "luxury". You may sell fewer cars but the profit margins are fatter. Jack up an economy hatchback, bloat it few inches and slap in some heated seats and a big screen. Offer AWD, now it's a "crossover" you can charge $5000+ more for worse fuel economy.

Honda for example, drops the Fit hatchback for the HR-V crossover in the US. The HR-V has similar useable interior space, is built on the same platform as the Fit, but is lifted up and costs more.

The last year of the US Fit in 2020 started at $17,145 with destination. The current HR-V starts at $25,095!