GM sales fall 5.5% in Q3 as U.S. buyers choose sedans, small SUVs

Foreign brands gain ground as Detroit’s Big Three sales decline

American car buyers are rediscovering smaller, budget-conscious vehicles as overall U.S. new-vehicle sales are expected to dip in the third quarter, according to The Wall Street Journal. General Motors, the top-selling U.S. automaker, posted a 5.5% overall sales decline in the third quarter, while foreign brands Honda and Hyundai notched gains by offering passenger cars and more affordable options starting below $25,000.

The pattern signals a consumer pullback from the larger, more profitable SUVs and pickups that have dominated the U.S. market for years. Foreign rivals that maintained passenger-car lineups are capturing buyers who might otherwise have chosen a small SUV, reshaping a market where Detroit’s three biggest automakers have largely exited the sedan segment.

GM recorded a sharp rise in sales of its small SUVs in the third quarter, including the Chevrolet Trax and Trailblazer, while sales of its hulking Suburban and Tahoe full-size SUVs declined. A GM spokesman said sales of its full-size pickups were up in the third quarter, even as the automaker transitions to significantly updated 2027 model-year trucks. The company held on to its crown as America’s top carmaker by volume, a title Toyota is closing in on.

GM and Ford have largely pulled out of the sedan business, leaning instead into their more profitable SUVs and pickups. GM hiked its full-year profit forecast in July, and executives said this week that demand for its diesel-powered Chevrolet Silverado and GMC Sierra pickups remains strong despite record-high diesel prices. “It is really important to us that we do keep that mix and that we don’t just respond to today’s gas prices,” GM North American chief Duncan Aldred said at an Automotive News event in Detroit on Wednesday.

Honda said on Thursday its passenger car sales rose 18% in the third quarter, the brand’s best performance since 2020. “Because of increased pressure on the consumer, they are considering a passenger car today when before they weren’t,” Lance Woelfer, vice president of auto sales at Honda’s American unit, said in an interview. Sales of the Accord sedan jumped as buyers who may have been looking for a small SUV considered a sedan instead, he said, while the Civic sedan is in short supply.

At the same Detroit event, Hyundai Motor America chief executive Randy Parker credited his company’s continued investment in passenger cars. “Thank God we never gave up on passenger cars because that’s helping us gain a little bit of share in the marketplace,” Parker said. Hyundai’s Elantra sedan sales jumped 18% in the quarter, and Toyota’s Corolla is also sharply up this year. The Elantra, the Corolla, and the small Chevrolet Trax and Trailblazer all carry sticker prices starting below $25,000.

Ford does not release its quarterly sales data until Friday, but Cox Automotive forecasts its sales fell 7% in the quarter. Chief Executive Jim Farley said Wednesday that a component shortage forced Ford to temporarily halt production of the F-150 pickup, the top-selling vehicle in America, which hurt the company’s third-quarter sales.

Stellantis, which owns Jeep, Ram and Chrysler, recorded flat sales for the quarter after racing to introduce new models and recoup market share it shed in recent years. CEO Antonio Filosa said Chrysler will soon begin selling cheaper vehicles. “We have a huge opportunity below $40,000,” Filosa said. “We know that we can get there.” Stellantis has few vehicles with sticker prices below $40,000.

The consumer shift has hit larger SUVs particularly hard. Hyundai’s three-row Palisade SUV dropped 1% in the third quarter, and Jeep’s Grand Cherokee declined 30%. GM’s hulking Suburban and Tahoe posted declines as well.

Overall, U.S. new-vehicle sales are expected to dip slightly in the third quarter from a year earlier, according to car-shopping firm Edmunds. Analysts have been expecting auto sales to be flat or down for 2026 overall, compared with a year prior, suggesting that higher sticker prices and gas prices are wearing on consumers. Sales by Detroit’s three big automakers declined in the quarter, according to sales reports and estimates from Cox Automotive.