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Eric Gordon, a professor at the University of Michigan's Ross School of Business, has sounded the alarm: should Ford and General Motors cede a substantial portion of their market share to rivals in countries where they once held sway—such as Canada and Mexico—they could find themselves on a path to becoming niche manufacturers. In such a scenario, their production and sales efforts would be narrowly focused on large pickup trucks and sport utility vehicles (SUVs). While these vehicle types enjoy popularity among Americans, they struggle to gain traction in most global markets. Gordon contends that the future market landscape for American automakers could contract markedly, with only a segment of the U.S. market remaining viable—specifically, the portion where demand persists for large pickup trucks and SUVs.
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