This is right and it's wrong. Every inexpensive car in America utterly fails to sell. Dodge tried with the Dodge Dart 2 in 2013 and it lasted 3 years before they ended the model for lack of sales. Mitsubishi has tried for years to sell to the lower end market, and has ended up cutting every model from their lineup except the SUVs and larger vehicles. The big 3 completely stopped making sedans. The best selling car in America right now? The Ford F-150. Starting at $40k, 20mpg combined.
yes, the american automaker doubled down on expensive cars, and it's because the american consumer demanded it and outright refused to buy anything else.
They didn't try in earnest. The Dodge Dart was a very low quality car at an uncompetitive price. You could get a Corolla for the same money. I bought a Nissan Versa around that time for like $10k out the door.
Ok but even then, Nissan officially discontinued U.S. production of the Nissan Versa. These things don't sell. American's by-and-large don't want them.
A combination of low interest rates and declining Nissan quality to price. You couldn't get a Versa for under $20k post-2020, so there was absolutely no reason to buy one.