They weren't turning a profit on the individual cars, which cost them a ton of money, and now they are trying to make higher margin SUVs and Trucks. They wouldn't have sold any if they had to sell for a profit. Tesla would have destroyed them.

They could have probably reduced the costs with higher volumes and bumped up their margins but they would have been fighting an uphill battle. Especially since their competitor is a massively capitalized and quickly maturing Model 3. Not to mention the freaking dealerships sucking the life out of their customers. I'm pretty sure the recalls didn't help either.

Ford has already done the same with all their passenger cars and is making a lot of money as a result. It's a shame because it's costing on the externalities like pedestrian deaths and road wear.