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Surprise: Americans Still Love SUVs

April 9, 2018 By Jeremy Jones, CFA

By welcomia @ Shutterstock.com

The WSJ is reporting that Chevy is pulling the plug on the Chevy Sonic and Ford is doing the same with the Fiesta and Taurus. The Sonic and Fiesta compete with the Honda Civic. Both are small compact cars, whose popularity probably peaked when oil prices soared to over $140 per barrel in 2008. But with oil prices now in a modest range, car buyers have decided they actually prefer a roomier SUV/crossover or truck to the cramped compact car.

The Taurus isn’t a compact car, but it has apparently fallen out of favor with car buyers. The Taurus has been in near continuous production since 1986, but it is now outsold by the Ford Fusion.

As a further sign of truck and SUV popularity, Ford is planning to bring back the Ford Bronco and the Ranger in 2020.

The breaking news is that there is no breaking news. As they always have, Americans still favor a bigger, roomier vehicle.

Read more here.

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Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
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