Ford made headlines this week when it announced plans to overhaul its North American vehicle portfolio that skews heavily to trucks and SUVs. In the process, the Ford Taurus, Fusion, Focus and Fiesta will soon come to an end. However, we shouldn’t expect an identical strategy from General Motors.
The Detroit News reported on Thursday that General Motors CEO Mary Barra still believes the sedan segment is “significant,” but she also admitted is declining.
“We think there’s an opportunity because we’ve made the investments, we need to deploy little-to-no capital as we move forward,” Barra said on a conference call with investors.
Barra’s statement doesn’t paint the most optimistic view for GM sedans moving forward, but she also doesn’t totally sound the alarm bell. It seems all but certain the Chevrolet Impala will die off considering her “little-to-no-capital” comment.
She added that GM has worked to overhaul its car lines to create greater efficiencies and said, “I think what you’re going to see us do is very efficiently play in a segment that although is declining, there still is opportunity.”
Earlier reports suggested GM was studying the futures of a handful of cars, namely, the Chevrolet Volt, Chevrolet Impala, Buick LaCrosse, and Cadillac CT6.
Comments
If Ford cancels the Taurus, which is the base vehicle for its “Police Interceptor” line, then GM and Chevrolet must take up that police line with a special Impala model. I have not seen any news for the older Caprice line. Modern police fleets do need hybrids for patrol operations. will Gm come up with a special police hybrid sedan?
Most police departments seem to prefer the Explorer over the Taurus anyway.
There is a 9C1 option for the Impala for 2019 I think. Though it seems that it would probably be better to offer a Traverse 9C1 option too at this point, though the Tahoe 9C1 seems to be pretty popular.
The Caprice died with the previous gen Holden Commodore (which it was based on).
Holden Caprice, not Commodore.
Sedans are not insignificant, fords lineup is insignificant. Ford in general has become so irrelevant they need to either give up or start over. No one wants front wheel drive ecoboost turbo cars we want rwd based cars with all wheel drive options and better engines and less problems
“We think there’s an opportunity because we’ve made the investments, we need to deploy little-to-no capital as we move forward,”
Here let me translate this. We miscalculated and invested into sedans as they have begun to die off. So at this point we will continue to milk this segment as long as we can to get a return on our investment but do not expect us to make any real changes moving forward. You have all we are going to offer.
Police fleets will be made up with Blazer models to compete with the Ford CUV. Cops love em. I have a new Explorer Interceptor next to my house and my Neighbor loves it. GM will not invest in the Impala as FWS patrol cars are no longer much considered anymore. The CUV is much more easier to work out of.
GM is just going to get as much out of this as they can but in the end we may have the Camaro and maybe a Malibu along with the assorted EV models that may come.
Just found a family member a new 2017 for a really good deal as they did not sell it along with a number of others on the lot. I even found some 2016 Lacrosse still unsold with no miles. Good deals on them if you are looking for a sedan.
Very astute, Scott. This is reality folks, like it or not. Utility is the name of the game these days. As a younger generation gal recently told me, “Sedans are so yesterday!”
I think what is also yesterday for the younger generation is ‘smallness’. As in why should a young gal drive around a small little hatch and tell the world she’s ‘small little person’. A noob. A novice. Whereas —
— they can pick up a bigger car used and jump ahead ten years in ‘status’.
Well said…Here’s a recent story: https://www.usatoday.com/story/money/cars/2017/06/19/nations-most-popular-police-car-now-suv/103006874/
I think her Dad gave her a call and told her if you don’t want to be thought of as the second coming of Roger Smith don’t act like him!
The end of Fusion means good things for Malibu (a far better engineered car) & Sonata– they will duke it out with Nissan for 4th place.
Cruze and Impala should each get a small bump here. There is still a segment of the US buying public who only want domestics and the sedan should level off between 20-25 percent of sales.
FCA isn’t Ford. FCA was in a battle for survival, managing capital expenditure on a near quarterly basis, looking for a suitor, so made the risky step of transforming into a niche high margins player. (Now, FCA continues downsizing by announcing that it will basicall kill Fiat Europe, everything but 500 and Panda, in favor of Alfa and Jeep once again due to its long-term merger hopes probably with PSA or VW).
Ford will not be merging with anyone. Ford will still make sedans for the rest of its markets yet waste capital by not importing Focus and Fusion from pre-existing Chinese assembly lines into the US where only a small amount of engineering/marketing cost would be required.
Hackett will not be long for leadership at Ford. Come the next economic downturn Ford management will need to hustle in small, low cost China–made small cars.
GM needs to make an Impala SS to compete with the Charger and Challenger.
Bring back the Chevelle!!
Are you going to buy it?
the sedan popularity is declining but it is not dead , with some smart restructuring of GM division models they should be able to survive . some people do not want suvs and with Ford and Chrysler to discontinuing most of their sedans ,GM should be in that position to pick up some of those sales . structure in the right engines- options- combine trim levels -revise exterior and interior colors , should kept them in the market . smart marketing will help which GM desperately needs .
I’m wondering if a one model strategy would work.
There would be one Impala. If you wanted a better engine and interior — the LaCrosse. Even better? Cadillac.
To anyone who thinks sedans are dead, here’s a sterling refutation:
2018 Honda Accord Sport 2.0T
GM may be keeping sedans around, but by not committing to make the necessary investment to remain competitive, it is merely a slow death for its aging car lines which will further tarnish GMs image. Either seriously invest to keep them at the forefront like Honda is doing, or better to kill them off like Ford. Is Mary Barra cut from the same old GM cloth after all?
As far as police vehicle trends are concerned, the CHP just last year purchased 580 Charger Pursuits to replace aged Crown Vics and 2013 Ford Police Interceptor Utilities in its fleet. So much for SUV superiority.
The 2018 Honda Accord is piling up on dealer lots. It is not selling well…
http://www.motortrend.com/news/honda-accord-sales-dip/
That’s when a sport was a sport
And groovin’ was groovin’
And dancin’ meant everything
We were young and we were improvin’
Laughin’ laughin’ with our friends
Holding hands meant somethin’ baby
Outside the club, the Cherry Bomb
Our hearts were really pumpin’
Say yeah yeah yeah
Say yeah yeah yeah
GM needs to bring back the Monte Carlo SS in RWD 6.2L.
Monte Carlo was as coupe in history,it never have sedan version. Unless, GM would like to make it like Mercedes CLS or BMW 6 Grandcoupe as a 4-doors coupe. So why should not call Chevelle or Impala ?
My point is Coupes as cars have an appeal over sedans. Sedans were the more practical option for families who didn’t want a station wagon. Just like many choose an SUV over a minivan today.
I have no real-world need for an SUV, and actually prefer older styled Coupes and Sedans. For instance, my callsic car I own is a 1968 Buick Electra 225 Coupe. A nice large coupe that is sharp looking and could pull double-duty as a 6-passenger hauler…
If Buick made a full-size Coupe today, that would be my next purchase. But a RWD Super Sport Monte Carlo with the power train found in the Camaro SS would be my cup of tea too!
If there was ever to be a low-volume coupe from GM, it would be a Cadillac, not a Chevrolet.
Say yeah yeah yeah
malibu, spark, and cruze aready have there upgrades. Malbu has 2.0-liter turbo.
I was in my Buick/GMC yesterday getting an oil change. I had a seat in two sedans.
HATCHBACK REGAL
Sat in the driver’s seat. I was wearing a hat because it was a warm day and it scraped the ceiling. So I took it off. And then I noticed I didn’t have to do that in my Encore.
The seating position is weird. I felt… urm… exposed. That instead of being in an ‘egg’ I was an egg on toast. The windshield seemed too close. Roomier than a Cruze, absolutely. But still a little snug somehow.
(What I get for driving ‘egg’ shaped CUVs for decades.)
BUICK LACROSSE
Kind of a chore to get into the passenger seat. I have a back which can complain sometimes. Once in it was room city. Reminded me of my Dad’s old Caddys. Kind of. Still if I had to run some errands and get in and out of this car a lot I wouldn’t like it a lot.
*******************
I just see no reason for these things compared to CUVs and SUVs. (And haven’t since 1990.)
I know the regulars here will now invoke the ‘transportation’ vs ‘performance/handling’ argument really that’s so silly. Cars are meant to get you from A to B with comfort, speed, and safety. Sedans are just tight on room unless you buy the Impala but I want height and width over length. Boats are hard to drive.
I think what’s happening to cars is what’s happening to the nation: women are being heard. Contrary to Freud — women are less concerned about length and more concerned about you can do with it.
Ahem.
A question for Mary Barra and GM. Why is the Impala in a closet with all of its awards? No advertisement for GM or its dealers. Advertise it with its award and put a few dollars on the hood. Put it beside a 57 Impala the the collectors love that doesn’t even come close to the new ones. I’m sure if the Japanese or Korean ha d it they won’t let it die. My first new vehicle was a 1959 two door hardtop and now have a 2015 the best vehicle we’ve ever owned. That it out of the closet with a little help should sell 10,000 a month.
GM has cash on the hood, up to $2500, $1000 + 3.9% or a low lease deal…TV advertising doesn’t work like it used to…
A small dealer in Newberry Michigan doesn’t even have a new Impala on on his lot. I talk to a salesman he told me almost nothing on the hood. I bet GM isn’t giving the dealers anything to put on their lots. I still think GM isn’t doing enough to promote the Impala. The latest Models 2014 thru 2018 has won Kelly Blue Book Buy Award 4 years in a row.
I bet very few customers even know about the best buy awards. I have a 2015 V-6 love. When I bought mine not many dealers had many V-6’s mostly 4 cyl.
I googled “Newberry Michigan Chevy”, clicked on the dealer link, selected the new cars tab/search, pressed CTRL + F which is find and typed “imp” and two MY18 Impalas popped up both advertising money on the hood, one for $2000…https://www.newberrygm.com/VehicleDetails/new-2018-Chevrolet-Impala-LS-Newberry-MI/3181772553
They’re both stock photos so I do believe they are NOT on their lot but the moral of the story is, do not trust car dealers for any information…Go to Chevy.com, config one how you like, search the dealer inventory and go to a local dealers to test drive the config/trim even if it has colors or additional options you do not like…You’re just there to confirm you like the way it feels and the driving experience…Go home after and search nationwide…Volume dealers can be several thousands less making it worthwhile to pay that $700 shipping fee…
American car companies keep missing the point. We are opting for CUVS because you made the cars so small we can’t fit our junk in them and till now you haven’t mastered the small engine so we will prefer a small Japanese car but for family cars we will buy the CUV.
Once you produce a well engineered small car we will start buying them again and if you produce a large well engineered car we will buy it too
Do you understand what we want or not yet
They do and its CUVs…In the good ole’ days, SUVs were based on truck frames, now most are on a “car” unibody including the Explorer which changed in 2011…SUVs have always been popular ever since the Jeep but they weren’t always practical both in up front cost and in mpg; unibodies/engineering has now changed that as Chevys very own diesel Equinox gets 38mpg highway with AWD…
One problem with almost all newer sedans is THE TOTAL LACK OF A USEFUL AND ROOMY TRUNK!