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America’s love affair with the SUV is killing the reliable sedan
The Chevy Malibu is gone the way of the dodo.
The long-running Malibu nameplate has had two separate runs with Chevrolet, with its first run dating back 50 years. GM sold 10 million Malibuses during its time, but in recent days it’s a rarity – a sedan.
GM (GM) said space at the Malibu factory will now be dedicated to manufacturing more crossovers, SUVs and EVs.
“The Chevy Malibu has been a victim of consumer shifts from traditional sedans to crossovers of all shapes and sizes. GM also needed space at its Kansas City factory to build the next generation Chevy Bolt EV,” Autoblog editor-in-chief Greg Migliore told Yahoo Finance. The Cadillac XT4 SUV will also be built at the Kansas City plant. “So you can see the hierarchy, and midsize sedans like the Malibu are at the bottom for Chevy and its buyers.”
Case in point: Take a look at any mall parking lot or airport boarding area, where SUVs and sporty crossovers dominate the terrain. (Disclosure: Autoblog is owned by Yahoo Finance, Yahoo’s parent company.)
The 2019 Chevrolet Malibu is on display at the 111th Annual Chicago Auto Show at McCormick Place in Chicago, Illinois on February 7, 2019. (Raymond Boyd/Getty Images) (Raymond Boyd via Getty Images)
“Crossovers are a simple choice for many consumers. They do many things well, combining functionality with pleasant driving dynamics to reach a wide swath of the market,” adds Migliore. “Broadly speaking, the crossover segment is the appliance section of the automotive business: a safe choice that you don’t have to think too much about.”
While major automakers like Toyota with the Camry, Honda with its long-running Accord and Hyundai with the Sonata continue sales of midsize sedans, GM, Ford and Stellantis have, for the most part, exited the market due to to the decrease in sales. Japanese and Korean automakers produce sedans because they can make money on them through cost efficiencies and scale, but that pie is getting smaller.
Sales data provided to Yahoo Finance by the automotive research site Edmunds. with shows that from 2019 to 2023, the global market share of new “cars” (made up mainly of sedans, but also coupes) sold in the US fell by almost a third, from 27.1% to 20.5%. In particular, midsize cars fell from a market share of 8.2% to 5.8%, and that of compact cars fell from 8.8% to 6.1%.
Meanwhile, global SUV sales have soared to 56.3% in 2023 from an already robust 48.5% in 2019, essentially taking up half the market. Gains were widespread, with notable moves in compact SUVs (18.8% from 17.9%) and midsize SUVs (16.6% from 15.9%).
“The popularity of sedans has steadily declined as automakers have expanded and enhanced their SUV portfolios across segments and budgets,” Joseph Yoon, consumer insights analyst at Edmunds, told Yahoo Finance. “Customers have signaled loud and clear with their wallets that they want a raised seating position and the perception of additional utility across all segments, whether they need it or not.”
The story continues
Despite the perception that SUVs are generally more practical and Americans’ predilection for big, brutish SUVs, the sedan body still has a lot to offer consumers. In terms of size, the Camry and Accord can comfortably seat four to five adults, with trunk space that can accommodate several large suitcases, comparable to a midsize SUV.
With their smaller footprint, more aerodynamic bodywork and lower overall weight, sedans are more fuel efficient than similarly sized SUVs and crossovers and emit fewer pollutants. According to the latest EPA Automotive Trends Report, truck-based SUVs produced an impressive 364 grams/mile of CO₂ emissions, while cars produced 260 grams. Although overall miles per gallon levels are improving for SUVs compared to cars, they still tend to pollute more.
Additionally, better aerodynamics, less weight on the wheels and a lower center of gravity can mean better performance on the road. Sedans like high performance BMW M5 It is Cadillac CT5-V Black Wing can run circles around the sportiest SUV.
The 2025 Cadillac CT5 is displayed at the North American International Auto Show in Detroit, Wednesday, Sept. 13, 2023. (AP Photo/Paul Sancya) (ASSOCIATED PRESS)
In the upper echelons of the automobile market, some sedans continue to thrive due to their strong performance, size and appearance. The aforementioned BMW M5 isn’t going anywhere, and the CT5-V Blackwing has was a sales winner for Cadillac.
Sedans also tend to be more affordable. Edmunds data reveals that the transaction price for a midsize car like a Camry or Accord averages $32,029, compared to $48,706 for a midsize SUV like a Kia Telluride or a Jeep Grand Cherokee.
Even Stellantis’ Dodge Charger sedan is still seeing sales success in its final model year compared to the Malibu.
“Ford and Chevy haven’t been able to win with sedans in years, so [killing the Malibu] It’s a logical move. But all they need to do is look at Dodge and the success the Charger has had for two decades to see how a differentiated product can make consumers want to buy an American sedan,” said Migliore.
Migliore notes that even after its cancellation, the Malibu name could return in revised form (again).
Maybe GM will split the difference and give tired sedan fans a rejuvenated Malibu. After all, if the venerable Mustang name can be repurposed like an electric crossoverWhy can’t there be an electrified Malibu sedan for the 21st century?
Pras Subramanian is a reporter for Yahoo Finance. You can follow it Twitter and so on Instagram.
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