Good cars getting the ax as crossover craze rolls on
Automakers have a knack for giving good cars the whack just when they get them right. It happened with the 1993 Cadillac Allante and its advanced 32-valve V-8 engine. The deceased Pontiac Aztek was only ugly from the outside, although the much-maligned Yugo took a wellearned bullet. More recently, Ford and GM have discontinued the majority of their cars as Asian automakers have found ways to steer them through seas of popular crossovers.
Why are so many good cars getting axed?
“Domestic automakers are not as successful with cars in the U.S. as Japanese and Korean automakers,” said Jessica Caldwell, executive director of industry analysis at Edmunds. “They’re focusing on the core business of what they’re good at — SUVs. Looking at a future of mobility and automation is expensive, so they have to be careful that what they’re selling can help determine future success.”
Ford is phasing out all its cars, save the Mustang and GT. Those being culled include the Fiesta, Focus, Taurus and popular mid-size Fusion — all well-respected cars. The winnowing is going down at Lincoln too with the MKZ, which departs after 2020. Chrysler already cut all of its cars except for full-size muscle machines.
Following Ford’s lead, General Motors recently revved its buzz saw on the Chevy Impala, Chevy Cruze,
Chevy Volt plug-in, Buick LaCrosse, Buick Cascada convertible and Cadillac XTS/CT6. GM will discontinue the Buick Regal and TourX wagon after 2020. Only the Chevy Malibu will remain as a high-volume car at GM. Don’t worry about the new mid-engine Corvette; it’s safe.
Perhaps the best car to get whacked is the Cadillac CT6, GM’s first proper flagship sedan in generations and technology leader with Super Cruise hands-off driving system and 550 horsepower turbocharged Blackwing V8. The former will spread to other Cadillacs, but the latter was a one-year delight, like the Northstar-powered Allante. The CT6’s Detroit factory is being converted to electric vehicle production.
These cars are meeting the reaper for the same reason the Allante did: sales. Automakers are not charities, of course. They invest where they make money, and data from Automotive News shows that sales are with the hot crossovers.
While the Chevy Impala sold 44,978 units last year, Blazer/Traverse sold 205,237. Chevrolet sold a combined 179,892 Cruzes/Malibus, while it moved 462,865 Equinox and Trax compact crossovers. Buick sold just 7,241 LaCrosse full-size sedans, while combined Enclave/Envision crossover sales reached 84,385.
It’s similar at Cadillac where fullsize XTS and CT6 sedans represented just 19,255 combined units — slightly less than the Allante’s entire production run — while the brand’s CT5, CT6, and Escalade SUVs tallied 96,862.
Ford significantly wound down car sales during 2019. The year before, it sold 113,345 Focus compacts and 36,088 Taurus full-size sedans while delivering 272,228 Escape compact crossovers. It also sold 261,571 Explorers, crossovers based on Taurus architecture. Surprisingly, the mid-size Fusion outsold the similar Edge crossover (173,600 vs. 134,122). There’s a reason.
“It’s a case of the car going away, causing favorable pricing and temporarily higher sales,” Caldwell said. “Margins are not as good as on the Edge. Cars take up production capacity and are not as profitable as SUVs. People have a ‘size-to-price’ issue in their minds that helps justify the higher prices of crossovers versus cars.”
As domestic automakers winnow their fleets, space is created for others to thrive. Honda sold 325,650 compact Civics and 267,567 mid-size Accords last year (compared to 384,168 CR-V crossovers). Toyota moved 304,850 Corollas and 364,745 Camrys/Avalons (vs. 448,071 RAV4s and 230,438 Highlanders). Nissan sold 209,183 Altimas, and 184,618 Sentras (plus 350,447 Rogues). Building on small car strengths, Nissan just launched all-new Versa and Sentra sedans.
“Compacts are still the third largest segment behind mid-size crossovers and full-size trucks,” said Rob Warren, director of marketing for Nissan sedans. “A recent survey shows 78% of drivers who don’t have a sedan will consider one in the future. It also found 86% of Gen-Z and Millennials are considering a sedan for their next purchase. Overall, cars offer a more enjoyable driving experience and expressive style. It’s about having ‘my space’ and ‘my time’ to get a more personalized environment.”
Think how the Toyota Camry and Avalon TRD take it to the extreme with NASCAR ground affects and wings plus sharper handling on top of 31-MPG highway. Korean automakers continue to invest in sedans such as the stylish all-new 2020 Hyundai Sonata, invigorating Genesis G70 sport sedan and upcoming 2021 Kia Optima that’s inspired by the handsome Imagine concept.
These models prove that as crossovers become family trucksters, cars can flash more exuberance as they generally weigh less, have better aerodynamics and achieve higher fuel economy ratings. Their lower center of gravity enhances handling. They also provide opportunities for automakers.
“Cars like the Nissan Versa and Honda Civic provide an entry to the auto market that others don’t provide,” Caldwell said. “When young buyers have a good experience, they tend to stay with the brand.”
Because cars are generally less expensive than similar crossovers, they make good choices for lower income and first-time drivers. Given everything, one wonders if eliminating cars is short-sided or prudent. Not everybody wants to drive an SUV. Some of us will long lament the loss of the Impala, Fusion, MKZ, TourX, Fiesta and Volt, not to mention the Cadillac CT6 Blackwing. Domestic automakers may yet regret the bloodletting.