Will Americans, Who’ve Spurned Cheaper Cars for Decades, Buy a Lower-Priced Baby “Truck?” I Don’t Know Either

by Wolf Richter
Wolf Street

Americans love big expensive equipment. And cheap cars have fizzled. Ford, which threw in the towel on its cheapest cars, is trying again, this time with a small “truck.”

Look, I think it’s a good idea to sell new vehicles with lower price tags that the less-well-off consumers can afford and like to drive. It’s like the biggest no-brainer in the history of mankind, given that these consumers today are shuffled off to the used vehicle market because they’ve been locked out of the new vehicle market.

But the idea has been had before. And it has failed every time. The lesson is always the same: Americans love big and expensive equipment, and it’s easy to sell and easy to make money with; and small and cheap is very hard to sell, and nearly impossible to make money with for automakers and dealers.

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