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Ford made a drastic announcement, but what they aren’t saying is that those factories will still be equipped to bring back the intermediate and full size vehicles if the market demands it.
GM had already taken similar steps, just not as drastic, by scaling back production of the Cruze, Impala, LaCrosse and the ATS and CTS, to increase production of CUVs and SUVs.
This is all driven by consumer demand for larger vehicles, sustained relatively “low” gas prices and the economy. Since things are typically occur in cycles, there will be another oil crisis, some analysts predict it may happen this year, where we’ll see gas prices spike. While the economy is moving along and home prices are increasing, any sustained recession would make purchasing a SUV cost prohibitive.
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