Industry News: Crossovers Are Eating Up Sales Of Midsize Sedans

[William Maley]

By William Maley

Staff Writer - CheersandGears.com

May 10, 2013

While the midsize sedan market as a whole remains the single largest segment in the U.S., sales of the Honda Accord and Toyota Camry are shrinking due to the rise of crossovers.

"While the segment is still growing year-over-year, it's nowhere near what it was growing last year as the industry was launching a lot of new midsize cars," said Bill Fay, the U.S. head of the Toyota brand.

The rise of crossovers are being fueled by their practicalness, ability to get in and out much easier, and improved fuel economy. The price gap between midsize sedans and crossovers has also narrowed. Kelly Blue Book says a crossover costs $1,300 more on average than a midsize sedan. To put it another way, the difference in monthly payments between a midsize sedan and a crossover is less than $20.

"Fundamentally, both serve the family market. Midsize cars have gotten smaller and more expensive, because of a variety of factors. People are switching to crossovers, because they satisfy the family needs very well," said Mustafa Mohatarem, General Motors Co's chief economist.

Source: Reuters

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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[Drew Dowdell]

Sure.. blame crossovers and not Kia, Hyundai, Ford, and VW.

[thedriver]

Why is this news? People have always loved station wagons, no matter what they are called now.

[Robert Hall]

Why is this news? People have always loved station wagons, no matter what they are called now.

A CUV is a poor substitute for a station wagon, though...too tall w/ the cargo area too short...too much like a minivan in drag.

[regfootball]

I really liked the old Mazda6 hatch. To me, it was like a sedan in looks and feel, and it had a huge cargo hold when you put the seat down. And it did not look like a wagon.

After another long trip in the company Journey again the other day, I am convinced there are very few crossovers I would prefer to drive everyday instead of a sedan or nice hatch.

My Taurus X is the closest thing I have driven yet to a car, and that is probably a wagon.

[regfootball]

i would have gotten one of these, would have driven like a car.....

[G. David Felt]

Cars truly have gone to a lesser pedistal as the flexibility of CUV's meets the more active life style or at least what people want other to think they live.

[regfootball]

i think i have seen this on one BMW, a dual solution in the back end. A 'twin hatch'......one you can open most of the time as a trunk and the other to open the whole hatchback when you have large items.

hopefully done far better than this