THE SEDAN PURGE
THE DECIMATION OF THE FOUR-DOOR FAMILY-CAR CATEGORY IS ROCKING THE INDUSTRY
Bye, bye, Ford Taurus. So long, Chevrolet Impala. Rest in peace, Chrysler 200. And goodbye to the Chevrolet Sonic, Ford Fusion and Fiesta, Cadillac ATS and Dodge Dart, just a few of the Detroit Three’s four-door sedans already discontinued or on the chopping block.
And this is just the beginning.
Yes, it’s true: The staggering popularity of utility vehicles of all shapes, sizes and price points is killing the classic family sedan. For decades, sedans were the four-wheel equivalent of sensible shoes: practical, comfortable and versatile in any number of roles.
But now, buyers are drawn to multipurpose haulers that provide tall seating positions and flexible cargo room. The resulting utility-vehicle tsunami is causing automakers to rethink their business models, in some cases, drastically.
During an earnings report in late April, Ford Motor Co. dropped something of a bombshell when it announced it was discontinuing all of its current sedan models and in the next few years will stop selling them here.
“Over the next few years, the Ford car portfolio in North America will transition to two vehicles – the best-selling Mustang and the all-new Focus Active crossover coming out next year,” Ford said in a news release. The Focus Active is not coming to Canada, however.
“The company is also exploring new ‘white-space’ vehicle silhouettes that combine the best attributes of cars and utilities, such as higher ride height, space and versatility.”
Ford CEO Jim Hackett was succinct about the company’s motivations.
“We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term.
“Where we can raise the returns of underperforming parts of our business by making them more fit, we will. If appropriate returns are not on the horizon, we will shift that capital to where we can play and win.”
Translation: There’s no money to be made selling Taurus and Fusion sedans these days. And Ford is not alone in drastically realigning its product fleet.
In April, the Wall Street Journal reported that Chevrolet was doing away with its flagship sedan, the Impala, and the subcompact Sonic. Multiple news outlets, including CNN.com, have reported that the Buick LaCrosse, Cadillac CTS and ATS, and Chevrolet Cruze will either be discontinued or dramatically scaled back in production.
During General Motors’ April earnings report, Chief Financial Officer Chuck Stevens affirmed cutbacks to GM’s sedan lineup, saying the automaker “already indicated that we will make significantly lower investments (in sedans) on a go-forward basis,” news agency Reuters.com reported.
Fiat Chrysler Automobiles, too, has already moved in this direction by getting rid of the slow-selling Chrysler 200 and Dodge Dart sedans, which might have been the right vehicles at the wrong time, but that ultimately made them the wrong vehicles for the market.
At this point, the biggest question seems to be not which sedans will be sent to the great automotive nameplate graveyard in the sky, but how many will survive the culling.
Even Mercedes-Benz’s luxury arm, Maybach, introduced an ultra-high-end new vehicle called the Vision MercedesMaybach Ultimate Luxury, which is kind of an odd cross between a sedan and a utility vehicle.