Passenger cars: On life support?

Not all automakers are convinced

DETROIT – The passenger car isn’t dead yet.

Ford Motor’s announcement that it is killing almost all of its traditional car models is dramatic proof that sedans have lost their luster for U.S. automakers and drivers.

But is the passenger car really headed to the auto graveyard? And is Detroit’s fascination with larger vehicles a sign of danger ahead should economic winds shift? Not exactly, according to industry experts.

Ford’s rival, General Motors, isn’t ready to call for last rites.

Following the release of GM’s first-quarter earnings Thursday, Chuck Stevens, the company’s chief financial officer, was asked about reports two car models — the Chevrolet Sonic and Impala — could be “on the chopping block.”

Stevens offered a bit of a defense for the lowly car. “Although passenger car seg- ments have declined over the last number of years, they’re still very important,” he said.

Stevens said it’s all about picking vehicles that can win in the marketplace and adjusting supply to meet demand.

Ford’s plan, announced Wednesday, is for the U.S. to stop selling the Taurus, Fusion, Fiesta and C-Max, leaving only the Mustang. Today’s Focus would become a beefy fivedoor hatchback that looks like a crossover, the Focus Active.

That doesn’t signal an end to cars in Ford’s lineup, said Jim Farley, Ford’s president of global markets. It’s just that what now are called SUVs will be considered cars, he explained in an interview.

“We’re going to have a fantastic passenger car lineup. They just won’t be traditional sedans,” he said. He called it a “new era of classification.”

The automaker that put the Model T on the road is opting for a lineup heavier on pickups and SUVs, which consumer want and generally have higher profit margins.

Analysts have been predicting for months that a shift in driver preferences toward SUVs is permanent. But Sam Abuelsamid, analyst for Navigant Research, said the reality is that cars still have a place.

“Even if it’s only 20% globally, that’s still 15 to 20 million a year,” he said. “That’s not an insignificant quantity.”

And Ford spokesman Said Deep says Ford’s Lincoln luxury division will keep its MKZ and Continental, both car models, for now.

Sales trends have clearly favored SUVs for some time.

In 2009, during the recession, sedans commanded more than 39% of the U.S. market. By last year, they had fallen to 28%. Pickups and SUVs make up the rest.

The risk for automakers is that gas prices will spike and consumers will want more fuel-miserly cars again.