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Opinion: The Family Sedan is now on the Endangered Species List
Drew Dowdell posted an article in Opinion
With yesterday's report that the Hyundai Sonata and Kia K5/Optima may not be replaced at the end of their cycle, it has become clear that the mid-size family sedan in the U.S. has become an endangered species. The current Sonata and K5 are expected to last until at least 2025, but if they do in fact end, the number of mid-size sedans offered in the market will dwindle to 4. For perspective, that is the same number of mini-van models currently on offer. (Toyota Sienna, Honda Odyssey, Chrysler Pacifica/Voyager, Kia Carnival). The remaining sedans are Toyota Camry and Honda Accord, stalwarts in this niche, the Nissan Altima, and the Subaru Legacy. The Chevrolet Malibu, while still listed on the Chevy website has a questionable future as GM stopped taking orders for the Malibu back in February, and while there has been no official announcement, with sales in the mid-30k unit range and mostly going to fleets, we can't expect GM to keep it going for long. For now, the Camry seems safe as Toyota is able to continue to keep sales rates above the 300k unit mark, but sales of the Accord have dropped by 52% from 2014. The Nissan Altima is off by more than 1/3 from volumes just 5 years ago while the Legacy sedan has fallen the most, dropping by 62% since 2016. The first big selling mid-size sedan to get the ax was the Dodge Avenger. Since then the Chrysler 200, Ford Fusion, Volkswagen Passat, Mazda 6, and Buick Regal have all joined the list of dead mid-size sedan lines. The large family sedan class has fared even worse with only the aging Nissan Maxima, Chrysler 300, and Dodge Charger remaining once the Toyota Avalon stops production in August and joins the Chevy Impala, Buick Lacrosse, and Ford Taurus in that great junkyard in the sky. Stellantis has indicated no clear plans to replace their aging sedans and seems to continue producing them mostly out of inertia. The 300 is expect to soldier on for another year with no replacement while the Charger might be replaced in 2024. Once the most common silhouette in the American automotive landscape, the 3-box sedan is rapidly becoming a niche market as buyers flock to crossovers. -
With yesterday's report that the Hyundai Sonata and Kia K5/Optima may not be replaced at the end of their cycle, it has become clear that the mid-size family sedan in the U.S. has become an endangered species. The current Sonata and K5 are expected to last until at least 2025, but if they do in fact end, the number of mid-size sedans offered in the market will dwindle to 4. For perspective, that is the same number of mini-van models currently on offer. (Toyota Sienna, Honda Odyssey, Chrysler Pacifica/Voyager, Kia Carnival). The remaining sedans are Toyota Camry and Honda Accord, stalwarts in this niche, the Nissan Altima, and the Subaru Legacy. The Chevrolet Malibu, while still listed on the Chevy website has a questionable future as GM stopped taking orders for the Malibu back in February, and while there has been no official announcement, with sales in the mid-30k unit range and mostly going to fleets, we can't expect GM to keep it going for long. For now, the Camry seems safe as Toyota is able to continue to keep sales rates above the 300k unit mark, but sales of the Accord have dropped by 52% from 2014. The Nissan Altima is off by more than 1/3 from volumes just 5 years ago while the Legacy sedan has fallen the most, dropping by 62% since 2016. The first big selling mid-size sedan to get the ax was the Dodge Avenger. Since then the Chrysler 200, Ford Fusion, Volkswagen Passat, Mazda 6, and Buick Regal have all joined the list of dead mid-size sedan lines. The large family sedan class has fared even worse with only the aging Nissan Maxima, Chrysler 300, and Dodge Charger remaining once the Toyota Avalon stops production in August and joins the Chevy Impala, Buick Lacrosse, and Ford Taurus in that great junkyard in the sky. Stellantis has indicated no clear plans to replace their aging sedans and seems to continue producing them mostly out of inertia. The 300 is expect to soldier on for another year with no replacement while the Charger might be replaced in 2024. Once the most common silhouette in the American automotive landscape, the 3-box sedan is rapidly becoming a niche market as buyers flock to crossovers. View full article
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Acura's crossover lineup has been a bright spot for the Japanese automaker. For example, the redesigned RDX has been setting monthly sales records for sixth straight months since being launched in June. According to Automotive News, deliveries of the RDX "are outpacing 2017 by 22 percent." A fair number of automakers would take this as a sign to continue building out their crossover lineup. But Acura will instead focus on their car lineup. "We don't know what's going to happen in the future. What's critical is that we stay disciplined and balanced. [We'll] do our best to hit home runs with our sedans also," said Acura General Manager Jon Ikeda. Acura wants to emulate the success of the RDX onto their sedans. That means bringing a more aggressive design and adding more performance to their three sedans - the ILX, TLX, and RLX. But what about the CDX?! For a time, we have been hearing murmurs about Acura possibly bringing over the CDX from China. The CDX shares the same platform as the Honda HR-V, but features an extroverted design. But an Acura spokesman tells Automotive News that the RDX "can reach down into that smaller segment with its pricing and sway consumers with its added room." Source: Automotive News (Subscription Required) View full article
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Acura's crossover lineup has been a bright spot for the Japanese automaker. For example, the redesigned RDX has been setting monthly sales records for sixth straight months since being launched in June. According to Automotive News, deliveries of the RDX "are outpacing 2017 by 22 percent." A fair number of automakers would take this as a sign to continue building out their crossover lineup. But Acura will instead focus on their car lineup. "We don't know what's going to happen in the future. What's critical is that we stay disciplined and balanced. [We'll] do our best to hit home runs with our sedans also," said Acura General Manager Jon Ikeda. Acura wants to emulate the success of the RDX onto their sedans. That means bringing a more aggressive design and adding more performance to their three sedans - the ILX, TLX, and RLX. But what about the CDX?! For a time, we have been hearing murmurs about Acura possibly bringing over the CDX from China. The CDX shares the same platform as the Honda HR-V, but features an extroverted design. But an Acura spokesman tells Automotive News that the RDX "can reach down into that smaller segment with its pricing and sway consumers with its added room." Source: Automotive News (Subscription Required) -
Chevrolet Still Sees Cars As An Important Part Of Their Lineup
William Maley posted an article in Chevrolet
Chevrolet believes that it gain more market share in subcompacts to full-size sedans as other competitors leave the market, most notably Ford. "It's a pretty big opportunity for us. As other people are making noise about leaving the car business or thrifting back their portfolio, there's still business to be had there. It's just going about the business in a smart fashion," said Steve Majoros, Chevrolet's marketing director for cars and crossovers to Automotive News. While the car market in the U.S. continues to shrink as more buyers go for SUVs and crossovers, it still represents more than four million possible customers and an opportunity for Chevrolet to introduce itself to this group. Plus, compact and midsize segments still representative one in every five vehicles sold. Majoros believes that sales of cars have "hit the floor." "There's still volume to be had there. We've done a nice job about taking a responsible approach to the product. If other competitors are leaving, we're very happy to pick up that business, and we'll certainly do that." Source: Automotive News (Subscription Required) -
Chevrolet believes that it gain more market share in subcompacts to full-size sedans as other competitors leave the market, most notably Ford. "It's a pretty big opportunity for us. As other people are making noise about leaving the car business or thrifting back their portfolio, there's still business to be had there. It's just going about the business in a smart fashion," said Steve Majoros, Chevrolet's marketing director for cars and crossovers to Automotive News. While the car market in the U.S. continues to shrink as more buyers go for SUVs and crossovers, it still represents more than four million possible customers and an opportunity for Chevrolet to introduce itself to this group. Plus, compact and midsize segments still representative one in every five vehicles sold. Majoros believes that sales of cars have "hit the floor." "There's still volume to be had there. We've done a nice job about taking a responsible approach to the product. If other competitors are leaving, we're very happy to pick up that business, and we'll certainly do that." Source: Automotive News (Subscription Required) View full article
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Volkswagen's Future U.S. Lineup Includes More Crossovers
William Maley posted an article in Volkswagen
Volkswagen recently held an event for journalists and investors to talk about the upcoming Jetta. But the company also gave a preview of their product plans for the near future. According to Autoblog, those plans include two new crossovers. The first will be a five-seat model that will slot between the Tiguan and Atlas. Volkswagen North America CEO President and CEO Hinrich Woebcken described it as 'coupe-like'. We're assuming this model will compete with the likes of the Ford Edge and Nissan Murano. The second will slot below the long-wheelbase Tiguan (what we get in the U.S.). This could either be the short-wheelbase Tiguan or a new model that was hinted by Volkswagen's director of development, Dr. Frank Welsch back in September. It comes as no surprise that Volkswagen is planning to expand their crossover offerings. During his presentation, Woebcken showed that light truck sales increased a whopping 51 percent year-to-date, compared to 1 percent for car sales. Still, Volkswagen is planning to walk away from sedans just yet. 2018 will see the new Jetta and launches of the Arteon and Passat GT. Down the road, Volkswagen will introduce a new Jetta GLI and redesigned Passat. Source: Autoblog -
Volkswagen recently held an event for journalists and investors to talk about the upcoming Jetta. But the company also gave a preview of their product plans for the near future. According to Autoblog, those plans include two new crossovers. The first will be a five-seat model that will slot between the Tiguan and Atlas. Volkswagen North America CEO President and CEO Hinrich Woebcken described it as 'coupe-like'. We're assuming this model will compete with the likes of the Ford Edge and Nissan Murano. The second will slot below the long-wheelbase Tiguan (what we get in the U.S.). This could either be the short-wheelbase Tiguan or a new model that was hinted by Volkswagen's director of development, Dr. Frank Welsch back in September. It comes as no surprise that Volkswagen is planning to expand their crossover offerings. During his presentation, Woebcken showed that light truck sales increased a whopping 51 percent year-to-date, compared to 1 percent for car sales. Still, Volkswagen is planning to walk away from sedans just yet. 2018 will see the new Jetta and launches of the Arteon and Passat GT. Down the road, Volkswagen will introduce a new Jetta GLI and redesigned Passat. Source: Autoblog View full article
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Congratulations America. It seems we now buy more SUVs and crossovers than sedans according to a new study from IHS Automotive. Through May of 2014, IHS says that SUVs and CUVs account for 36.5 percent of new car registrations, compared to the 35.4 percent of registrations for sedans. This is a reversal from five years ago where sedans stood at 36.3 percent of registrations, compared to the 31.4 percent for SUVs and crossovers. “It’s not that sedans have become unpopular. It’s just that CUVs have really grown. They drive like cars, but they have higher positioning, the option for four-wheel drive and better fuel economy. There’s more space for seating. It’s easy to see why they’ve taken off in popularity,” said Tom Libby, analyst for IHS Automotive. The one thing we wished the study showed is the breakdown in registration percentages if SUVs and crossovers were separated. Otherwise, the results don't come as surprise. Source: Bloomberg 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. -
Congratulations America. It seems we now buy more SUVs and crossovers than sedans according to a new study from IHS Automotive. Through May of 2014, IHS says that SUVs and CUVs account for 36.5 percent of new car registrations, compared to the 35.4 percent of registrations for sedans. This is a reversal from five years ago where sedans stood at 36.3 percent of registrations, compared to the 31.4 percent for SUVs and crossovers. “It’s not that sedans have become unpopular. It’s just that CUVs have really grown. They drive like cars, but they have higher positioning, the option for four-wheel drive and better fuel economy. There’s more space for seating. It’s easy to see why they’ve taken off in popularity,” said Tom Libby, analyst for IHS Automotive. The one thing we wished the study showed is the breakdown in registration percentages if SUVs and crossovers were separated. Otherwise, the results don't come as surprise. Source: Bloomberg 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. View full article
