After the global recession commodity prices crashed. Oil prices quickly rebounded to around $100 a barrel, which drove heavy investment in fracking. That in turn forced OPEC to defend their share of the oil market by increasing production & driving down oil prices. Oil prices crashed, bottoming out at $26.21 a barrel in February of 2016.
When oil prices are low consumers shift preference from purchasing cars to purchasing light trucks & SUVs. As the economy has heated up auto sales hit over 17 million units per year. In spite of strong unit volume growth, car sales have remained sluggish due to low oil prices.
Passenger cars “continues to be a difficult segment as we see a continued shift into SUVs,” Ford’s U.S. sales chief, Mark LaNeve, said on a conference call. “We anticipate continued migration” from cars to SUVs over the next five years, he added.
Here are the best-selling truck models in 2017.
Low oil prices have led to stagnant car sales as truck sales saw continued growth: "Sales of car-based models fell nearly 11% in 2017; while sales of pickups, SUVs, crossovers and vans rose 4.3%, to 10.9 million. That was about 60% of all light-vehicle sales."
In the coming years Ford intends to stop selling most of their sedan models to focus on more profitable trucks & SUVs.
Ford, one of the great engines of 20th Century American industry, is about to do the unthinkable: abandon the American car business almost entirely. Just two years from now, a mere 10 percent of the vehicles rolling off Ford assembly lines and into North American showrooms will be sedans and sports cars like the Taurus or Mustang. The rest will be pickups, SUVs and commercial vehicles