Nissan, Toyota, Honda survive the car plague
Technology, redesigns help them to thrive
Think of them as the survivor cars. A triumvirate of mainstream midsize sedans, each with a loyal following, are sure to hang on and survive despite the droves of motorists shifting to crossovers, SUVs and pickups.
The shakeout is still unfolding, but it’s already clear Toyota Camry, Nissan Altima and Honda Accord will emerge, likely picking up even greater market share within their shrinking segment, once the most popular in the industry.
Nissan is hoping to remind consumers why it belongs in the top tier when it introduces a redesigned Altima at the New York International Auto Show onWednesday.
For other automakers, their future with cars looks more uncertain after car sales plunged 10.9% in 2017, according to Autodata.
Fiat Chrysler has ditched most of its passenger cars. Ford Motor announced it’s downplaying cars amid mounting speculation the company may eliminate some models.
Meanwhile, most other automakers are struggling to get passenger cars off dealership lots.
“There’s definitely some rationalization going on in the segment,” said Michael Bunce, vice president of product planning for Nissan North America. “It creates a healthier business for everybody” remaining.
Indeed, the survivor cars have entrenched themselves at the top of the leaderboard. It’s a reflection of their strong brands and a bold commitment to quick redesigns, newtechnology and comprehensive marketing, even as other automakers started pumping the brakes.
Put simply, they had strong brands, and they never wavered. All three companies have kept discounts lowto preserve resale values. And acclaimed redesigns helped. The Honda Accord won the 2018 North American Car of the Year, and Toyota won accolades for its 2018 Camry, which CEO Akio Toyoda dubbed “sexy.”
Camry, Altima and Accord are leading the “core group that will be able to survive in a less friendly world,” said Karl Brauer, executive publisher for Kelley Blue Book.
“They have a lot of momentum,” said Joe Wiesenfelder, executive editor of Cars. com.
The Japanese automakers placed a bet that Americans would keep buying their stalwart sedans despite lower gasoline prices and shifting preferences toward bigger vehicles.
“Those three vehicles— the Camry, the Accord and the Altima — have been at the top of the midsize segment for a while,” said Tom Libby, automotive analyst at market- research firm IHS Markit.
Many passenger cars have wilted as declining gasoline prices and preferences for roomier rides took a toll. U. S. market share for sedans plummeted from 37.4% in 2013 to 27.5% in 2017, according to IHS Markit.
Passenger cars’ loss turned out to be a gain for SUVs and crossovers.
About 2million passenger car sales have shifted to crossovers, SUVs and pickups in recent years, Toyota North America sales and marketing chief Bill Fay said.
“When you have a three- or fouryear market shift like we’ve had, everybody has to look at that and either decide to reinvest in cars ... or stop investing in them altogether,” Fay said.
“I think it’s a possibility” that competitors will discontinue more models, he added.
One factor that could keep some sedans alive is the global nature of the automotive business.