Volkswagen is considering making its first American pickup in 40 years. Nissan is promising more rugged SUVs. And Detroit is racing to maintain its high margins in the heartland.
The U.S. is emerging as the last true profit engine for the world’s carmakers—and the auto industry is scrambling to compete.
“My top three priorities are: U.S.A.,” Hyundai CEO José Muñoz said at a recent event, explaining why so many of the South Korean automaker’s new models are tailored for American drivers.
U.S., European and Asian automakers are all focused on making and selling cars in the U.S. because of Americans’ proclivity for large pickups and SUVs—vehicles with high profit margins—and their willingness to swallow record-high sticker prices. New car prices are hovering around $50,000, while roughly one-fifth of new-vehicle buyers have monthly car payments that top $1,000.
