Earlier this year, in Yesterday’s Car of Tomorrow, I wrote about how, in the 1950s, car buyers tended to be loyal to manufacturers; as their needs and circumstances changed, they switched models, but not makes, and the big carmakers of the day planned their product lines accordingly, ensuring that they always had an entry-level, a medium-tier, and a high-end vehicle to offer.
Between 2016 and 2020 the Detroit Three—Ford, General Motors, and Chrysler (now Stellantis)—abandoned this practice. They systematically discontinued their entry-level cars, to chase fatter margins in trucks and SUVs. In the short term, it made sense: why sell a $20,000 compact for a small profit rather than a $45,000 crossover for a large one? But in the long term, or rather the medium term, it was foolish.
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