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Automakers are slowly phasing out sedans as car design trends evolve. 

In the mid-20th century, sedans were one of the most popular car types on the market. These reliable stalwarts were the go-to for so many consumers, and at the time, it was difficult to conceive of them falling out of fashion. The tides have turned drastically over the last few decades, with many consumers switching to larger vehicle types like the SUV. 

This trend is particularly prevalent in the United States, where there are just 56 sedans left on the market. Many auto manufacturers have either already stopped making sedans for the US market, or plan to phase them out slowly moving forward. For example, GM recently announced that they would end production of the Chevy Malibu, its last remaining sedan. Close competitors Ford and Chrysler have also completely stopped production of their sedans. 

Nissan is the latest auto manufacturer to cut back on sedan production, despite having stuck with sedans after many competitors abandoned them. The brand plans to end production of its Versa sedan in 2025 and its slightly larger Altima sedan in 2026. This leaves just one sedan model, the Sentra, remaining. However, it’s possible that Nissan could announce new hybrid or electric sedan models in the future. 

The reasons for this shift are complex. Sales of sedans have dwindled over time as many Americans have opted for crossovers or SUVs instead. These larger models offer more space and can be more practical in many scenarios, especially for families.

The US government recently approved more than $1 billion to fund a variety of auto manufacturing projects, many of which focus on electric vehicles. This funding is also intended to keep manufacturing plants from closing and protect jobs. General Motors and Stellantis will receive the largest share of the funds to revive existing auto plants in Michigan and Illinois. 

The Biden administration is continuing to fund EV projects and other sustainable transportation solutions, even as EV sales have struggled over the past several years. Although EV adoption has stagnated somewhat this year, investment in this technology is still necessary to prepare for the future. In addition to climate concerns, some experts speculate that this investment could also help American automakers prepare for future competition from China. Chinese EV companies are currently focusing on low-cost international exports, which could potentially be disruptive to the US market. 

This grant comes at an interesting time for the auto industry in the United States. Recently released data indicates that foreign automakers produced more cars in the US in 2023 than the “big 3” US-based automakers (General Motors, Ford, and Chrysler). This is the first time that this has happened in history and indicates a shift in the way that companies around the world build their vehicles. US-based automakers have expanded some of their manufacturing operations to plants outside of the US, while foreign automakers are shifting to US-based plants.

In May, the Biden Administration implemented tariffs against Chinese electric vehicles and batteries in the United States. Now, the European Union is following suit. While the EU previously had a 10% tariff for all cars imported from China, the new tariffs will go as high as 37.6% for some automakers. 

In addition to putting tariffs directly on Chinese automakers selling cars in the EU, these tariffs will also apply to European automakers who move production to China. These tariffs are meant to incentivize manufacturers to keep jobs within Europe, rather than seeking cheaper labor prices in China. 

However, these tariffs haven’t stopped Chinese EV companies from moving forward with their expansions. Nio has already launched in Europe and recently reaffirmed its commitment to operating there, despite the upcoming tariffs. Smart is exploring the possibility of manufacturing its cars in Europe, which could make global expansion more efficient. BYD recently finalized a $1 billion deal for a manufacturing plant in Turkey, which could allow for easier expansion to Europe. These decisions indicate that Chinese auto manufacturers aren’t necessarily deterred by tariffs and plan to continue expansion into international markets.

Tesla has been heavily focused on the development of robotaxis over the past year. A prototype unveiling was initially scheduled for early August, but the event has since been pushed to October. The company states that it needs the extra time to develop more prototypes. This announcement initially caused Tesla stock to take a dip, although it has since partially recovered. 

However, Tesla is likely to face competition in bringing a robotaxi to market. Waymo, a Google subsidiary, has already launched robotaxis in San Francisco, Los Angeles, and Phoenix, although service remains limited. Waymo has also struggled with safety concerns — in early July, Phoenix law enforcement pulled over a Waymo taxi driving the wrong way, likely due to an inability to navigate construction signage. 

Other companies are developing robotaxis for international use. For example, Rimac recently announced its upcoming robotaxi service, Verne, which will launch in Croatia in 2026. Rimac plans to expand the service throughout Europe and the Middle East. In Asia, GM and Honda are working to launch Cruise robotaxis in Japan.

Many consumers are still skeptical of robotaxis, especially after several high-profile safety incidents in the San Francisco area. However, auto manufacturers appear to remain optimistic about the prospects of robotaxis and other autonomous technology as investment and development continues.  

One of the biggest barriers to widespread EV adoption is the lack of accessible charging options. ChargePoint is currently the largest charging network in the United States, but most locations do not have fast-charging options. Tesla also has an extensive charging network, but it is proprietary and is only accessible to Tesla customers.

In response to this problem, seven of the largest automakers in the country partnered to create the Ionna charging network: BMW, General Motors, Honda, Hyundai, Kia, Mercedez-Benz, and Stellantis. When built, the Ionna charging network plans to have more than 30,000 chargers throughout the country, which will support a wide variety of electric vehicles. 

In early July, Toyota announced that they will also be joining the Ionna charging network. This means that Toyota and Lexus EV customers will have access to the network when it is unveiled. The first stations are likely to open in 2024, with the full network open by 2030.