US automakers like Ford, GM and Stellantis are reviving the sedan line‑up to meet shifting buyer demands. Learn how the market is changing – read more now.
For decades the American auto market has been dominated by ever‑growing SUVs and pickup trucks. As a result, the average size of new‑car sales in the United States has ballooned, and traditional sedans have all but disappeared from the line‑ups of Detroit’s major manufacturers.
Why Sedans Fell Out of Favor
Higher profit margins on trucks and crossovers led brands such as Ford and General Motors to phase out modest‑priced sedans. Ford hasn’t sold a single sedan in the U.S. since 2018, and GM’s last Chevrolet Malibu rolled off the line in 2024. Stellantis still offers a handful of low‑volume models – the electric Dodge Charger Daytona, the Maserati Ghibli and the Alfa Romeo Giulia – but they are far from mainstream.
Growing Pressure From Competition
Japanese and Korean rivals – Honda, Toyota and Hyundai – continue to produce compact sedans at lower cost while still turning a profit. Ford’s own executives have admitted that they can’t match the pricing power of these overseas brands in the sub‑compact segment.
The average transaction price for a new vehicle in the United States now exceeds $50,000, putting additional strain on manufacturers to provide more affordable options.
Manufacturers Rethink Their Strategies
Earlier this year, Ford CEO Jim Farley acknowledged that the company struggles to compete with Japanese and Korean brands in the small‑car segment. Nevertheless, Ford is exploring ways to bring a new sedan back into its U.S. portfolio.
GM’s chairman Mark Reuss recently said, “I would love to see a hybrid‑electric sedan,” and confirmed that the company is studying how to make it happen.
Stellantis is also shifting its stance. Chrysler CEO Chris Feuell confirmed that the brand is developing a compact model priced under $30,000, signaling a renewed focus on budget‑conscious buyers.
The Economics of a Sedan Revival
For a sedan resurgence to succeed, it must be profitable. Simply moving production to lower‑cost countries like Mexico or South Korea has not solved Detroit’s small‑car margin problem. Even Toyota, which still sells the Corolla, admits its profit on compact cars is thin.
Fifteen years ago, small cars accounted for roughly half of all new‑vehicle sales in the U.S.; today they represent just 18 percent, highlighting the dramatic shift in consumer preference.
Global Reach as a Competitive Edge
Foreign brands maintain strong sedan sales in the United States thanks to worldwide distribution networks. Models such as the Toyota Camry and Honda Accord are sold in dozens of markets, providing scale that Detroit’s three megafactories lack.
To launch affordable new sedans, American manufacturers may need to adopt a similar global‑first approach.
Why a ‘Gateway’ Sedan Matters
Industry analysts have long described compact sedans as a “gateway” product. They give first‑time car buyers an entry‑level, reasonably priced option before they graduate to higher‑margin SUVs and pickups within the same brand.
Re‑introducing at least one budget‑friendly sedan could therefore broaden the customer base and create a pipeline for future, higher‑profit vehicle sales.
As consumer sentiment evolves and cost pressures mount, the United States may finally see a modest but meaningful return of the humble sedan – a sign that Detroit is listening to changing market dynamics.