What will happen to the car market, dealerships, and American car makers?

American car companies have focused on pick-up trucks since the 60's when tariffs were put on foreign pick-up trucks. That lets American companies charge higher prices on pick-up trucks and make a lot more profit - they basically stopped making sedans and other small cars.

Post covid due to supply issues, American automakers were restricted on how many cars they could make - so they focused on making the most expensive will as many options as possible, driving the price of the cars way up. And consumers who felt they had no other options paid those prices.

But last year 3 million car loans were defaulted on. The prices are very high and customers are signing 8 year loans for new cars they plan on keeping for only 3 years.

A lot of youtube videos are claiming the market is collapsing - but none are saying what will actually happen. Just that the prices are too high.

So what will happen when car prices are too high? Will car makers just switch to making cheaper vehicles and the market will reset? Will the losses be too much and dealers and automakers will go out of business?

Will the wealthy people just keep buying high priced new cars and there just won't be a car market for the middle class and poor?