The news that General Motors is going to stop producing a lot of cars has created a lot of confusion, making it appear that GM is near failure. In fact, this announcement parallels a similar one from Ford earlier this year and one from Chrysler in 2016: all three companies are focusing on SUVs and other truck-like vehicles rather than cars. The main difference was that GM, unlike Ford and Chrysler, accompanied its announcement with a list of several factories that it planned to close.
The reality is that Americans have good reasons to prefer SUVs over cars, and GM, Ford, and Chrysler are simply responding to market demand. One of the most important advantages SUVs have is comfort: because they are taller, they have a higher hip point or H-point, meaning riders are sitting upright with their feet well below their hips instead of sticking out in front of them.
Before World War II, most cars had a high hip point, and it wasn’t until after the war that low-hip-point popular vehicles (as opposed to sports cars) were pioneered by Studebaker and Kaiser. Curiously, the vehicle regarded as the first SUV, the Willys Jeep station wagon, was also made by Kaiser for many years. Continue reading
