Hoovey689

iTrader: (16)

Large car market withering away... will it survive?

To look at automakers' lineups these days, it would appear that America's large car market is enjoying something of a resurgence. After all, Chevrolet has invested in a new Impala, Toyota has its new Avalon, Hyundai fielded an all-new Azera for 2012, and Nissan is presently working on a next-generation Maxima.

Yet, according to the industry forecasters at Polk, the market for mainstream big sedans is cratering. According to Polk's data, the large mainstream sedan segment has plunged from a 5.8-percent share of the US car market in 2008 to just 3.5 percent in 2012. That sales drop is enough to put this most American of car bodystyles behind the minivan segment, a market whose own sales slide has been comparatively well documented.

According to Polk, part of the reason for the shift is America's increasing appetite for smaller and more efficient vehicles, along with increased automaker emphasis on the midsize sedan segment, where more frequent redesigns and new technologies are becoming commonplace. In fact, Polk hypothesizes that at some point, family sedans like the Ford Fusion and Honda Accord may be subject to "re-definition" as America's largest non-luxury automobiles.

Despite the grim outlook, the firm's analysts believe that the "large car category will survive in the near term" thanks to forthcoming entries like the Chevrolet SS, Kia Cadenza and Volkswagen Phaeton, which Polk expects to return in 2015. On the premium side of the street, the picture looks somewhat better, with the number of big luxury players staying pretty much the same. Even so, sales of cars in the class from automakers like BMW and Mercedes-Benz has slipped from .76-percent to .46-percent of the total US sales market.

http://www.autoblog.com/2013/03/24/l...ll-it-survive/

Hoovey689

iTrader: (16)

Of course there will always be a demand for larger vehicles especially here in the States. If automakers can make them more efficient at the same time well then the market will be alive and kicking

bitkahuna

iTrader: (20)

i think that article is ludicrous. large cars aren't losing to smaller cars, they're losing to cuvs/suvs.

spwolf

yep.

This is true in both Avalon and LS world. Avalon has a lot better chance than LS/S/7/A8 though, since it can re-engineer itself a bit and be better proposition for buyers... buy a lot nicer Camry for just $4k more for instance.

Now LS/S/7/A8... I dont see them going back to previous sales unless a lot more money is made by their customers first. I think that part might be true - $100k large sedans are constantly going down in sales. I dont think large SUVs are replacing them, people probably now get $80k 5 series for instance or Porsche Panamera or combination of both.

Outrage

When companies stopped producing large cars years ago, people simply moved to SUVs to gain the space lost. The large car market is also the SUV market.

LexFather

Yup SUVs. SUVs seem to get better every year with tons of new features and innovation. Large Cars seem to be an afterthought up until maybe recently. SUVs are more profitable as well so that dictates where the effort goes.

One thing they can do with a large car is make it look good, make it look so good that people want it so bad they don't care about a SUV. I think Chrysler did a great job with that memo and the new Avalon as well.

UDel

Many have moved to SUV's or CUV's but a big reason the larger car/sedan market is going away or shrunk is simply automakers (particularly American) are not making them anymore. The Lincoln Towncar/Continental are dead, the Ford Crown Victoria/LTD gone, Chevy Caprice dead-Impala is smaller, Chrysler Concord/LHS/Dodge Intrepid are all dead, no Buick Roadmaster or Lasabre, Olds is dead with the 98, Pontiac dead with the Bonneville, no big rwd Cadillacs anymore, etc. None of these cars were particularly well done or great cars but they did have a market and combined sales were fairly large.

Even with the Japanese there is no more Mazda 929, Millenia, Mitsubishi Diamante, Q45, Accord got smaller, etc.

While the full size/large sedans have mostly disappeared mid sized family/luxury sedans have in most cases grown in size, some significantly like the Altima, last Accord, Maxima has grown in size, Camry is bigger, ES has gotten much bigger, TL bigger, G20/J30 to G37 much larger, 3 series is much larger then E46 and previous models, C class will be larger, etc.

If car companies particularly American ones brought back larger sedans that had good styling, good quality, were relatively efficient, and did not cost too much I think there would be a pretty decent market for them. I could see a new 929 or some larger Toyota/Nissan Japan domestic sedans selling well in the US too if they were not too expensive. Not everyone is into SUV's/SUV's and there really aren't any big SUV's/CUV's that are efficient or affordable for the avg American.

mmarshall

The problem is that most of today's "large" cars (Avalon, Impala, Azera, Taurus, etc...) aren't truly large cars. They are, with few exceptions, simply slightly stretched medium-sedan platforms. In fact, the "Compact" cars I drove in the late 60s (Valiant, Falcon, Nova, etc...) were as big....or bigger....than some of today's "large" cars. The downsizing of the late 70s and 80s screwed up the entire industry's (and public's) thinking of what was considered what...and in what size.

bitkahuna

iTrader: (20)

chicken meet egg.

they're not making them because the demand has shifted over to suv/cuvs. if someone wants a 'big car' why not get the HEIGHT too? getting into and out of an suv/cuv is so much easier than most sedans. load height of an suv/cuv is so much better than a sedan. the height also makes cargo space WAY more useful for that big screen tv, furniture, bales of hay, etc.

that's true in the short run, but of course 'midsize' sedans in the 60s and 70s were gigantic.

another factor is obesity - americans have just gotten bigger and also seem to cart more crap around.

i disagree, and believe most have moved on to suv/cuvs.

Aron9000

^ The Chevrolet Suburban and Tahoe has essentially killed the "large" car market IMO. People love sitting up high, even if it costs them 10-15mpg at the gas pump vs something like a v6 Dodge Charger(which is MUCH CHEAPER as well).

Plus the automakers have gotten pretty darn good with growing "midsize" cars over the past decade, compare the size of a 2002 Accord with a 2012 Accord. There is a lot more space in the rear seat and trunk, the car is also significantly longer, wider, and taller.

That being said, I do think there is a niche market for a big sedan. Some people love them, like me. There is nothing like driving a full size Cadillac Brougham down the interstate at 75mph, the sun reflecting so brightly off that acre of freshly waxed navy blue hood that you need sunglasses to drive the damn thing on a cloudy day. Right now if I had the $$$$ to spend on $50,000 worth of car, it would no doubt be a Dodge Charger SRT-8, such a badass looking car with a big old 470hp v8 under the hood. Plus the "aluminum" dash is actually real alumium

Outrage

I believe the large car market was killed off for a period of time by CAFE fuel economy standards. Cars and SUVs/Trucks had to meet different average MPG targets. Consumers demanded vehicles which fit their lifestyle while the government forced manufacturers produce increasingly small vehicles no one wanted to buy. It was inevitable that consumers would "work around" the government regulations.

bitkahuna

iTrader: (20)

very good point! just like the govt is rapidly killing off v8's in sedans.