General Motors’ major competition, in the form of Ford and Fiat Chrysler, have seen the writing on the wall and bet big on Crossover Hell being the future. While those other guys are exiting the sedan game and introducing a new crossover for every day of the week, GM hasn’t given up on the car buyer, doubling down in a big way.
Sedans and coupes are selling in comparatively low numbers—even Honda cars have dropped below Honda truck sales—but, it’s still big business. GM continues to believe in the sedan market, some 4 million customers large, as a way to introduce customers to GM with entry-level product, Automotive News reports:
“It’s a pretty big opportunity for us,” Steve Majoros, Chevrolet’s marketing director for cars and crossovers said at the launch of the new Chevrolet Malibu RS last week, “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.”
“There’s still volume to be had there,” Majoros continued. “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.”
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Chevrolet, for example, will continue to invest in every sedan segment from subcompact to full-size. GM hopes to gain market share in those segments as the competition leaves.
Cars only account for about 32 percent of U.S. sales this year, which is down significantly from 46 percent back in 2014, Chevrolet indicates. Automotive News declares further that the midsize car market has decreased by some 15 percent this year over 2017, and Malibu sales have dropped off 5.9 percent. GM isn’t ready to give up yet, continuing to invest in new Malibu variants, like the new sporty RS model.
Compact and midsize sedan segments still account for 20% of all new vehicles sold, however, and GM’s Majoros believes that car sales have “hit their floor.”
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I certainly hope he’s right, because I just can’t read another First Ever Generic Crossover press release without losing hope.
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