DETROIT, Mich. – General Motors plans on ending the production of six sedans by the end of 2019.
The death of the sedan is a real game changer.
North American customers want SUVs, crossovers, hatchbacks and trucks. Sedans have fallen out of favor.
“Well, I think that they see the trend and they are trying to just respond to retail demand. The movement towards crossovers has been much greater than anybody really anticipated,” said IHS Markit auto analyst, Tom Libby.
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GM announced Monday that it will cut as many as 14,000 workers in North America and put five plants up for possible closure.
The restructuring is part of a shift by GM as it abandons many of its car models and focuses more on autonomous and electric vehicles.
It's the new reality for automakers that are faced with the present cost of designing gas-powered cars and trucks that appeal to buyers now while, at the same time, preparing for a future world of electric and autonomous vehicles.
President Donald Trump tweeted on Tuesday about the layoffs and plant closures announced by General Motors on Monday. Trump threatened to cut all GM subsidies in response to the plant closures and layoffs.