When Ford decided to pull out of the car market in the U.S., aside from the Mustang, many were disappointed. Many more were indifferent. Most of the Ford cars were a bit boring, with a few bright spots like the Focus ST, and the Fusion Sport that was discontinued for 2020. Ford says that buyers in America want SUVs and there isn’t profit to be had in cars.
Honda appears to be proving that Ford is wrong and Honda’s sales success makes us wonder if Ford made better cars with a better reputation for quality and longevity, would they sell better. Honda is having a very strong year in the passenger car market as Ford winds down its passenger cars.
About 45 percent of Honda’s sales in the U.S. are passenger cars with SUVs like its very popular CR-V making up the lion’s share. The 45 percent of car sales is combined sales from Honda and its luxury arm Acura. Automotive News reports that Honda is seeing gains in its car sales as Ford and other brands are shifting their focus to SUVs. One of the biggest sellers in the car segment for Honda is the reasonably priced Civic family.
The line includes a coupe, sedan, and a hatchback long with the higher-performance Civic R model. Reports show that Honda Civic sales climbed 26 percent last month to 34,808 units, handily beating the second-place car in the market. The Civic is beating the Toyota Corolla by almost 20,000 units so far this year. Honda execs say that this sales success proves that buyers want passenger cars. Honda has grown its car sales nearly 2 percent, something other carmakers aren’t able to match.
So what gives? Why is Honda successfully with cars and Ford wasn’t? Perhaps Ford was hoping that by ditching cars it could force people to move to higher-margin SUVs. Perhaps Honda is doing well because not only is the civic affordable, it also has a reputation for reliability and lasting a very long time. One analyst says that the Civic has endured the market trend towards SUVs because there is a demand for transportation at less than SUV prices. Ford’s cars just weren’t as popular with buyers seeking low cost and longevity. Why do you think Ford cars failed in America while other brands are doing well?
Source: Automotive News