* Declining Sales: The large, rear-wheel-drive Caprice was facing stiff competition from more fuel-efficient, front-wheel-drive sedans that were becoming increasingly popular with consumers. Gas prices were also a factor. People were moving away from gas-guzzling full-size cars.
* Changing Consumer Preferences: The American automotive market was shifting towards smaller, more fuel-efficient vehicles and SUVs. The Caprice, a large sedan, simply wasn't fitting the evolving consumer demand.
* Production Costs: Manufacturing and maintaining a large, less popular vehicle became increasingly expensive for GM, especially when compared to the returns.
* Platform Sharing and Efficiency: GM was focusing on streamlining its production and sharing platforms across its brands to reduce costs. Continuing to produce a dedicated platform for the Caprice Classic didn't align with this strategy. The B-body platform which underpinned the Caprice was also aging and expensive to update.
In short, the Caprice Classic's discontinuation was a result of a confluence of market forces, economic considerations, and GM's overall corporate strategy. The car was a victim of its own size and the changing preferences of the American car-buying public.