A long article from
CNBC says that the Big
Three Two-and-a-Half will devote almost the entirety of their production to pickups and SUVs.
Cars are already terrible enough, but now they are being replaced by the far worse SUV and pickup.
But I dispute the article's contention that Americans are flocking to trucks and SUVs as a stated consumer preference. US trucks are being subsidized through tariffs, lower fuel emissions standards, and worldwide low gas prices.
Thanks to the quaint
Chicken tax, the light truck sector is the only segment of US automobile manufacturing that is protected explicitly by a tariff and not subject to
direct foreign competition.
As the article linked to the
New York Times says, in the 1970s, light trucks were also exempted from the higher fuel efficiency standards placed on cars.
The NYT article also says the SUV boom is taking place worldwide. That's of course not due to US tariffs, but to low gas prices, even in western Europe.
On the one hand, the 1960s truck tariffs and the fuel economy exemptions protected the US auto industry from total oblivion -- on the other, you can't deny that American auto makers making small trucks to the exclusion of everything else, and with such high guaranteed profits (I recall Ford makes nearly $10,000 per pickup), is a gross distortion of the market.