In recent years, America's largest automakers have almost entirely abandoned sedans and sports cars, instead focusing their efforts on the pickup truck and SUV markets.

　　Many domestic buyers have also turned to larger vehicles. However, the small car market remains, as Japanese, Korean, and German brands sell hundreds of thousands of small passenger cars annually in the U.S.

　　The resilience of the sedan market and concerns that high prices might drive away customers have prompted some U.S. automakers to reconsider their product lineups.

　　Industry experts say that the average price of a car is currently around $50,000, and a compact sedan starting at around $22,000 is an attractive entry-level option for buyers.

　　"It all comes down to price," said Orth Hedrick, vice president of product planning for Kia U.S. The Kia K4 compact sedan and its predecessor, the Kia Forte, sold a combined 140,514 units last year, making it the brand's second-best-selling model. “Its sales performance has been outstanding, far exceeding expectations, largely thanks to its price advantage.”

　　Similarly, the RAV4 crossover SUV is Toyota's best-selling model, with projected sales of 479,288 units by 2025. Last year, Toyota also sold 316,000 Camrys and nearly 250,000 Corollas, accounting for 65% and 51% of the SUV's sales, respectively.

　　Stephanie Brinley, Vice President of Automotive Intelligence at S&P Global Mobility, stated, “Sedans have the opportunity to become another option in the SUV market, and are generally cheaper than comparable SUVs. Sedans have a design advantage and are generally more fuel-efficient than SUVs.”

　　Industry observers, dealers, and automaker executives have publicly expressed concern that high car prices and rising fuel costs may lead buyers to reduce car purchases or increasingly turn to used cars.

　　In fact, Volkswagen stated that the Jetta sedan has been a popular entry-level model in the US market for 45 years. In early April, Volkswagen showcased its new full-size SUV, the Atlas, at the New York International Auto Show. In addition, the auto show also featured the compact Jetta sedan and two high-spec Golf hatchbacks.

　　“The Jetta is one of our most important models,” said Petar Danilovic, Senior Vice President of Product Marketing for Volkswagen North America. “Each model plays a different role in our portfolio. For example, the Jetta is certainly crucial for attracting entry-level customers. We hope to help them transition from the Jetta to the Tiguan, then to the Teramont, and ultimately become loyal fans of the Volkswagen brand. That’s the logic behind our decision.”

　　“Affordable options are crucial for attracting more young consumers,” said Rebecca Lindland, Managing Director of Allison Worldwide. “Many Gen Z and younger millennials simply cannot afford, or are unwilling to pay, the price of a typical SUV or crossover.”

　　The popularity of SUVs has been growing for decades, climbing rapidly in the 2010s, while sales of small sedans have declined. According to Edmunds, sedans accounted for nearly 40% of the market share in 2015. By 2026, that figure is projected to be only 15%. SUVs offer many car buyers an alternative to the sedans they're familiar with. The scarcity of SUVs today may have the same effect on sedans.

　　“Many young people grew up in the backseat of SUVs,” said Hedrick. “They don’t want to drive SUVs; they like something different. So for them, sedans are new. For those of us who grew up driving sedans, they’re commonplace. But for new buyers, they like the look of sedans and they like trying new things.”

　　American Automakers

　　Despite some reductions, American automakers still produce some sedans and sports cars.

　　General Motors’ luxury brand Cadillac will discontinue the CT4 sedan in 2026. The company confirmed in an email that the larger CT5 will be temporarily withdrawn from the market but will return later.

　　General Motors also produces the high-end Corvette sports car.

　　According to Automotive News, citing anonymous sources, General Motors plans to produce Buick sedans at a plant in Michigan. General Motors spokesman Kevin Kelly said in an email to CNBC that the company does not comment on product plans.

　　Brinley stated, "We don't expect the sedan market to return to its former glory of a decade ago, but for GM and other companies considering this opportunity, returning to this segment could be a good move."

　　Ford's only traditional model is the Ford Mustang, which many insiders—including CEO Jim Farley—call "the soul of the company." Although the F-150 pickup truck is Ford's best-selling model, and the Mustang's sales lag behind most of Ford's SUVs, according to Edmunds, the Mustang will remain the best-selling sedan in the U.S. as of April 2026.

　　Farley stated at the Detroit Auto Show that the company "will never say no" and may launch more traditional passenger vehicles in the future.

　　Stlantis Dodge currently produces the Charger sedan in both two-door and four-door configurations.

　　The best-selling sedan among U.S. automakers is Tesla. According to Edmunds, the Model 3 is Tesla's only sedan currently in production because Tesla has discontinued the full-size Model S.

　　Electric vehicle manufacturer Lucid Motors, which also produces the high-end Lucid Air sedan, plans to launch a mid-size SUV as its next product.

　　Others, however, say they won't abandon this segment.

　　"Clearly, the automotive industry has shifted from passenger cars to SUVs and light trucks," said Dave Christ, Group Vice President and General Manager of Toyota Motor North America. "But we remain bullish on passenger cars, so we will continue to invest in them. Even if passenger cars only account for 20% of total industry production, that's over 3 million vehicles per year."

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