America’s biggest automakers have all but abandoned sedans and coupes in recent years as they race to compete in the pickup and SUV markets.
Many domestic buyers have also shifted to these larger vehicles. There is a market for the cars, however, as Japanese, Korean and German brands sell hundreds of thousands of smaller passenger vehicles in the United States each year.
The resilience of the sedan market and fears that high prices will drive away customers have led some U.S. automakers to reconsider their lineups.
With the average vehicle price hovering around $50,000, a compact sedan that starts at around $22,000 provides an attractive entry point for buyers, industry experts say.
“It’s all about affordability,” said Orth Hedrick, vice president of product planning at Kia USA. Kia’s K4 compact sedan and its predecessor, the Kia Forte, were together the brand’s second best-selling vehicle last year, accounting for 140,514 units sold. “It worked out incredibly well for us. Way beyond plan, and a lot of that is due to affordability.”
Likewise, the RAV4 crossover SUV is Toyota’s best-seller, reaching 479,288 units sold in 2025. The automaker also sold 316,000 Camrys and nearly 250,000 Corollas last year, accounting for 65% and 51% of the SUV’s sales, respectively.
“Sedans have the opportunity to offer an alternative to the sea of SUVs, and they are generally less expensive than an SUV in the same size class,” said Stephanie Brinley, associate director of AutoIntelligence at S&P Global Mobility. “Sedans offer more opportunities for compelling design and they are generally more fuel efficient than utility vehicles.”
Industry observers, dealers and automaker executives have publicly expressed concern that high vehicle prices and rising fuel costs could cause buyers to pull back or increasingly turn to used cars.
Indeed, Volkswagen said it has kept its Jetta sedan in its lineup for 45 years in the United States as an affordable entry point. The brand introduced a recently refreshed version of its full-size Atlas SUV at the New York International Auto Show in early April. But there was also its compact car, the Jetta – and two taller versions of the Golf hatchback – also at the show.
“Jetta is one of our most important brands,” said Petar Danilovic, senior vice president of North American product marketing at Volkswagen. “Each car has a different role in the portfolio. And the Jetta, for example, is of course important to attract entry-level customers as well. So I hope to be able to develop them in the brand, from a Jetta maybe to a Tiguan to an Atlas. So that’s also the logic behind it.”
“Affordable options are key to attracting newer, younger shoppers to a brand,” said Rebecca Lindland, managing director of Allison Worldwide. “Many Gen Zers and younger Millennials simply cannot, or do not want to, access the typical payment for an SUV or crossover.”
SUVs have been gaining popularity for decades and gained popularity in the 2010s while sales of smaller cars declined. Sedans accounted for nearly 40% of the market in 2015, according to Edmunds. In 2026, there would be only 15%, according to the automobile site.
The SUV offered many of these buyers a change from the cars they were familiar with. However, their rarity could give the same effect to sedans.
“A lot of it is this new generation that grew up in the backseat of an SUV,” Hedrick said. “They don’t want to drive an SUV. They like something different. So for them, a sedan is new. For the rest of us who grew up with sedans all the time, it’s old hat. But for new buyers, they like the look. They like the idea of doing something different.”
American car manufacturers
Despite their decline, American automakers still make a few sedans and coupes.
General engines Luxury brand Cadillac is discontinuing the CT4 sedan in 2026. The larger CT5 will temporarily leave the market, but will return, the company confirmed in an email.
GM also makes the high-end Corvette sports coupe.
A report from Automotive News, citing an anonymous source, says GM plans to build a Buick sedan at a Michigan plant. GM spokesman Kevin Kelly told CNBC in an email that the company does not comment on product plans.
“We don’t see sedans returning to their decade-old peak,” Brinley said, “but returning to the segment could be a good move for GM and others considering this opportunity.”
Ford’s only mainstream body shape is the Ford Mustang, which many insiders — including CEO Jim Farley — have called “the soul of the company,” despite the fact that the F-150 pickup truck is by far its biggest seller and the Mustang is outsold by most of Ford’s SUVs. However, it is the best-selling coupe in the United States as of April 2026, according to Edmunds.
Farley said at the Detroit Auto Show that the company would “never say never” to the return of more traditional passenger cars.
Stellantis“Dodge currently makes the Charger sedan in two- and four-door configurations.
The best-selling sedan from an American automaker is the Tesla Model 3, according to Edmunds. It’s the only sedan Tesla makes now that it has discontinued the full-size Model S.
Electric vehicle manufacturer Lucid engines also makes the Lucid Air premium sedan, but plans a mid-size SUV for its next product.
Others say they are not abandoning the segment.
“Clearly, the industry has been moving toward SUVs and light trucks, away from passenger cars,” said Dave Christ, group vice president and general manager of Toyota Motor North America. “But we still believe in passenger cars, that’s why we will continue to invest in passenger cars. Even if the industry is 20% passenger cars, that’s more than 3 million cars per year.”