Recently, we published an opinion piece surrounding the Chevrolet Impala’s future. While we reflected on what may become of Chevy’s full-size sedan, Ford was busy hinting at one of its own passenger car’s death.
Automotive News reported on Tuesday that Ford could kill the Fusion mid-size sedan in the United States, which follows news that General Motors’ rival may move Fusion production from Mexico to China. It’s rather incredible to think about knowing when the current-generation Fusion debuted it earned mountains of praise and remains the segment’s fourth best-selling car.
Although Ford could import the Fusion to the United States from China, which it will do with the next-generation Focus, the automaker released a statement saying “We have no plans to export the next-generation Fusion/Mondeo from China to North America and Europe.”
Newly minted Ford CEO Jim Hackett then told the publication he’s giving a hint to the Fusion’s future with the mixed signals. That sounds like the Fusion is on a death march to us.
What could it mean for Chevrolet sedans? So far, the brand hasn’t indicated any major shifts in its sedan strategy. The Malibu was recently redesigned for 2016, which means it’s got some time left before a major decision is made. The Cruze is also fairly new. GM builds both cars in the United States.
That leaves the Impala. Currently, the GM Oshawa plant in Canada builds the full-size sedan, but the automaker has been rather silent on its future while the nameplate grows old in its model cycle.
But, it boils down to consumer preference. If trucks and SUVs make the money, it makes sense to build and sell them in North America. If sedans continue to flounder, outsourcing their production to cheap labor markets or killing them entirely may make more sense. Fusion sales are down 22 percent year-over-year.
If there’s any silver lining for the sedan segment, it’s that new product still sells. Toyota’s recently redesigned Camry actually rocked the sales charts with a 24 percent increase over November 2016. Still, the Camry is down 3 percent year-over-year.
Sales Numbers - Midsize Mainstream Sedans - November 2017 - United States
| MODEL | NOV 17 / NOV 16 | NOVEMBER 17 | NOVEMBER 16 | YTD 17 / YTD 16 | YTD 17 | YTD 16 |
|---|---|---|---|---|---|---|
| CAMRY | +24.13% | 34,991 | 28,189 | -3.23% | 343,750 | 355,206 |
| ACCORD | -15.39% | 22,998 | 27,182 | -3.47% | 300,540 | 311,352 |
| ALTIMA | -4.82% | 19,073 | 20,039 | -16.21% | 236,797 | 282,617 |
| FUSION | -15.14% | 14,901 | 17,560 | -22.10% | 192,179 | 246,708 |
| MALIBU | -27.76% | 13,420 | 18,577 | -17.50% | 169,229 | 205,117 |
| OPTIMA | -33.87% | 8,154 | 12,330 | -10.05% | 100,412 | 111,631 |
| SONATA | -48.04% | 7,982 | 15,363 | -33.57% | 123,295 | 185,614 |
| LEGACY | -44.19% | 3,245 | 5,814 | -23.76% | 45,244 | 59,346 |
| PASSAT | -51.25% | 3,140 | 6,441 | -12.25% | 57,707 | 65,761 |
| MAZDA6 | -45.80% | 1,651 | 3,046 | -24.40% | 31,626 | 41,832 |
| REGAL | -55.27% | 781 | 1,746 | -43.03% | 10,554 | 18,524 |
| 200 | -87.40% | 359 | 2,849 | -66.84% | 18,125 | 54,651 |
| TOTAL | -17.87% | 130,695 | 159,136 | -15.94% | 1,629,458 | 1,938,359 |
Comments
I don’t get the ideology behind axing sedans. How many times will the OEM’s repeat their mistakes? FCA is in deep trouble if fuel prices begin to increase, with little sedan presence in North America. So will Ford if they ax the Fusion. GM should keep carrying the Malibu. It’s a great car that will benefit from a mid-cycle refresh.
10-15 years ago, CUV’s were struggling, meanwhile sedans were booming. Sedans paid for CUV’s then, and it’s the other way around now.
The ideology is the market has changed and these cars while showing a profit are only showing a small profit and volume to the CUV models.
A company has $3 Billion to invest they just do not want to make some money they want the highest return on investment and that is not with the sedans anymore.
The smaller the cars get the more the CUV becomes more appealing to many as people can still use them for other things. The Small Buick CUV has really show the way forward in the market.
There was a time the V8 full size sedan was the money maker. Then the small Sedan. Then the Mini Van became dominate.
Now the way the market and regulations are the CUV is king. In time that may change.
The MFG want to build 250,000 units or more of what ever they make and the days for the products selling 120,000 units and less are becoming limited unless they get more expensive to bring the return on investment financially.
I hate to see anything go as the market is more interesting when there is many diverse products in it. But with the high cost of development they are cutting it to just the products that produce the most return.
If the market swings back to sedans or coupes we will see more of them or we may see the next big thing that comes along what ever that is.
To be honest if it were not for the fleet sales the Taurus is on borrowed time too.
It may be only companies like Lincoln, Cadillac or other luxury brands may offer a sedan of any size as the price point will let them make money on them.
I don’t want them dead but that is the way it is looking.
Might note Ford and GM both are doing well with their CUV lines but struggle with the cars. As the market for sedans are declining they are finding they are much more competitive with the CUV models vs. Toyota and Honda. While they have not topped them they are at numbers much closer than they are on the sedans.
Let’s stop this nonsense! They’re not axing a Fusion.
Ford is under terrible Wall Street pressure to be dynamic and foreward thinking. This is why Barra sold Opel AG, why FCA will eventually spin off Alfa, Masserati and later Jeep and Ram.
Mondeo isn’t quitting Europe. It does well with fleet and a future PSA Insignia presents even greater opportunity. Vignale trims add to margins.
My bet is that Ford will run two Fusion factories: China, for obvious reasons will have its own & Europe will get the other–Ford still has too much EU capacity.
A Chinese Fusion is a PR nightmare. Therefore, we will initially get EU Fusions, and,gradually, Chinese-made Fusions will take over.
Non dominant US automakers want the sedan to die. It won’t. Toyota, Honda, VW, Benz and BMW prove this. GM is still too global to kill Chevrolet and Buick sedans. I do think GM will more and more rely on China for production, however.
Regal is currently coming from Germany. Should PSA kill Insignia early we will be getting China produced Regals and certainly the Lacrosse will eventually come from the Middle Kingdom.
This is literally insanity.. it’s one thing to kill off a vehicle if sales are poor; but when you almost control the segment with over 14,000 units.. you’ve got to wonder what Ford is thinking to consider killing off one of their most successful cars.
What does this mean for Lincoln sedans sharing bits with Fusion?
What does the decline of non Japanese sedans mean for Cadillac with Buick and Avenir trim handling SUV sales in the luxury space. GMC brings in high transaction prices, too.
I wish GM would finally admit that the US future of Cadillac is as a Tesla EV rival. Lucid Air should provide more than enough inspiration.