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Part of the demand drop is that automakers aren't making a product consumers want to buy. They got lazy during the pandemic, and now that the sugar rush has ended their “cutting out entire product lines that appealed to the common buyer” has come home to roost.
You can only sell so many $100k pickups.
EDIT: Added quotes to make the sentence easier to read. My grammar is weird.
Not just a product that consumers don't want to buy, but one that most consumers can't buy because of high prices and low wages.
I purchased my current car used. I plan to purchase my next car used. The new car I bought in 2016 will likely be the last brand new car I ever buy (I know buying used typically makes more sense anyways, but the point still stands).
They're building to skirt regulations (efficiency requirements scale related to vehicle size) instead of just making the small reliable vehicles that almost everyone actually needs. The increased size of the average vehicle also leads some people to prefer larger vehicles themselves even if they don't need them. Try driving a smaller car and see how much more often you're blinded by headlights, both oncoming and from behind.
I don't know what the solution is but I'm glad to hear car makers are not seeing massive success with the current oversized lineups.
I drive a Prius and the number LED projector headlights at eye level is too damn high.