Gen Z is ditching the family SUV for the humble sedan U.S. carmakers gave up on. Now, Ford and GM are reconsidering | Fortune

Ford and General Motors are reconsidering the sedan segment after years of ceding it to foreign rivals, as Gen Z buyers show renewed demand for smaller, cheaper cars over the SUVs that dominated U.S. showrooms for the past decade. Both automakers exited most passenger-car lines—Ford in 2018-2019 and GM largely after its 2009 bankruptcy—to chase the higher margins of trucks and SUVs, leaving Toyota, Honda, and Hyundai to capture younger buyers with models like the Corolla, Civic, and Elantra. The shift matters because sedans remain a key entry point for first-time buyers, and ceding that segment risks losing an entire generation of customers to import brands before they trade up to trucks and SUVs later. Rising new-vehicle prices, which have pushed average transaction costs toward $50,000, are amplifying the appeal of sub-$25,000 sedans among budget-conscious younger shoppers. Executives at both companies have signaled openness to reentering the space, though neither has committed to specific models or timelines. Watch for whether Ford and GM announce concrete sedan programs or instead pursue lower-priced crossovers as a compromise.