Detroit's lost sedans, now making a comeback

Ford has stopped selling sedans in the United States since 2018.
GM expresses its desire to bring a hybrid sedan back into its product range.
The average price of a new vehicle in the US has surpassed $50,000.

Americans really love SUVs and trucks. To be honest, they aren't the only ones. Australians share the same enthusiasm, and even Europe has mostly given in to the popularity of SUVs and crossover vehicles.

Back in the United States, the average size of new vehicles has increased significantly over the last few decades as car manufacturers moved away from traditional sedans to trucks and SUVs that offer higher profit margins. However, there are now signs that the trend might reverse, and the modest sedan could be making a comeback, as theWall Street Journal reports.

Read: Ford May Reintroduce Sedans Upon Realizing It Can't Handle the Cost of Ignoring Them

Ford hasn't sold a sedan in the United States since 2018. GM constructed its finalChevrolet Malibu in 2024. Stellantis, meanwhile, continues to offer a few low-volume sedans, such as the electric Dodge Charger Daytona, Maserati Ghibli, and Alfa Romeo Giulia.

Detroit didn't leave the sedan market simply because consumers altered their preferences. American brands also found it difficult to compete.overseas rivalsfor example, Honda, Toyota, and Hyundai, which can manufacture these vehicles at a reduced expense and still generate profit. Ford, according to its own statement, was unable to achieve the necessary financial results.

At the same time, cost-effectiveness has emerged as an increasing issue. Theaverage cost of a new transactionCars in the United States now exceed $50,000, increasing pressure on car manufacturers to look into more affordable alternatives.

Why America Walked Away

FordBoss Jim Farley admitted earlier this year that the Blue Oval was simply unable to matchJapaneseand South Korean brands in the small car market. That being said, the company is currently exploring ways it could bring back a sedan to its range.

"The sedan market is quite lively," Farley said to reporters at the Detroit motor show last month. "It's not that there isn't a market there. It's just that we couldn't figure out how to compete and remain profitable. Well, we might find a way to do so." One option is constructing a sedan at the same Kentucky location planned to produceFord’s upcoming affordable pickup.

General Motors is also looking to bring back the sedan. GM president Mark Reuss recently stated, "I would go to great lengths to have a hybrid-electric sedan," during a company town hall meeting, and mentioned, "we're working on figuring out how to achieve that."

Stellantis is also reevaluating its stance. Chrysler's CEO, Chris Feuell, has stated that the brand is working on a small vehicle anticipated to be priced under $30,000, indicating a renewed emphasis on budget-conscious customers.

Can the Numbers Finally Add Up?

For sedans to experience a resurgence, they need to generate revenue. That is the main issue, and as The Wall Street Journal notes, this has been a long-standing challenge in the US. Moving manufacturing to lower-cost countries like Mexico and South Korea did not suffice to rescue Detroit's smaller cars previously. Even Toyota acknowledges that the profit margins are slim, stating that while it does make a profit on models such as the Corolla, it is "not by much."

Private cars, which made up about half of new vehicle sales 15 years back, now only comprise 18 percent of the U.S. market, showing how significantly consumer preferences have changed.

Global Scale As Strategy

A major factor that has allowed foreign brands to keep selling sedans in the United States is their broader international presence. For instance, models such as theToyota Camryand Honda Accord are available in numerous markets globally, and this might be something the Detroit Three should consider when introducing new budget-friendly sedan models.

Another strategic reason to reintroduce at least one sedan is that dealers and analysts have consistently referred to small cars as entry-level products. These vehicles offer first-time buyers a cost-effective way to get started before they upgrade to more profitable SUVs and trucks from the same manufacturer.

In a time where the average cost reaches $50,000, this crucial step could be more important than ever.