Truck-based models cost less for U.S. car markers to produce because they already have all the parts developed for their truck business. These truck-based SUVs have been the most profitable segment for Detroit in recent years, so developing new car-based models will eat into margins.
Detroit will slap on big incentives, and we'll be back to normal.
Detroit was an island surrounded by prosperity this year. The big SUV sales collapsed and did a number on their profitability. Both GM and Ford will lose a little market share in 2006, but not at the rate of 2005.