SHOPSMART AUTOS – CUSTOMER INFORMATION – AUGUST 4, 2021
NOT DEAD YET – THE CASE FOR SEDANS (PT. 3) “Younger generations feel like things cost more than in times past, and their money isn’t going as far,” Howard explained. “Sedans are more affordable, easier to drive and park, and you can fuel up for less. For many, sedans just seem hassle free.” “Many consumers see that sedans offer nearly every feature you find on a crossover, but at a much lower price with lower operating costs,” Ferreira added. “Younger people like sedans because they’re usually 20 to 40 percent less costly than a similarly-sized SUV or CUV. If you’re looking at a pre-owned sedan that’s a year or two old versus an used SUV or CUV that’s the same age, the price difference is even greater.” The funeral procession for the modern sedan most likely started here. Ford stirred the discussion in April of last year, announcing plans to cut their sedan lines in favor of trucks and SUVs. By that fall, we were learning of GM’s intentions to drop the Chevy Impala, Cruze, and Volt; Cadillac CT6 and XTS; and the Buick LaCrosse. The news came to a boiling point as GM announced the closures of Lordstown and Detroit-Hamtramck Assembly. While billed as restructuring efforts to make both companies more competitive and lean for the future, it underscores a long-held belief that American automakers struggle with sedans. “Japanese automakers, particularly Toyota and Honda, built their reputations on cars and car quality. They are still known for that as they have also expanded their utility vehicle offerings,” Krebs explained. “The Detroit Three never really had as good a reputation for building fabulous cars and consumers remained skeptical about their quality. And their costs to make cars are generally higher than those of the Japanese and Koreans.” “The Detroit Three take great pride in their sales of SUVs and trucks, but it is missing the mark to suggest that sedans aren’t a highly lucrative area,” Howard said. “It’s why the CEO of Volkswagen said during the North American International Auto Show that they have no plans to cede the segment.” Despite conducting this study on sedans, Nissan does have a growing portfolio of trucks and SVUs. However, sedans are essential to Nissan’s core business, serving as a means of winning over younger buyers. As an example, the Nissan Versa starts below $15,000 and remains under $20,000 even in its top trim. The little car comes with a fuel-sipping four-cylinder, Siri Eyes Free, and a host of new safety technologies. Given its price and content, the 2020 Versa is an ideal car for younger buyers or anybody else on a strict budget.Tags: 2019 Subaru Forester Touring, 2020 BMW iX3, 2020 Chevrolet Suburban, 2020 dodge charger, 2020 EQC, 2020 Ford Super Duty, 2020 Honda Pilot, 2020 Kia Optima, 2020 Mercedes Benz, 2020 Nissan Versa, 2020 Subaru WRX STI, Audi SUV, BMW, Brandon K. Hardison, Chevrolet Car, Chevrolet Sonic, Dodge charger, electric vehicles, honda, Honda Pilot, Hyundai SUV, Mercedes Benz, Nissan Rogue, SUV, upcoming car, Volkswagen, Volkswagen Tiguan SEL Premium R-Line, Volvo Car
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