Full-size Sedan Faithful, Take Heart - Fifth-gen Toyota Avalon Due Next Year; Toyota Says "We're Committed"

Timothy Cain
by Timothy Cain

U.S. sales of full-size, volume-brand sedans fell 17 percent in the first seven months of 2017, a sharp drop following noteworthy declines in each of the last three years. Despite the growth the market has seen since the auto industry’s collapse in 2009, big sedans have lost 37 percent of their U.S. sales volume over the last four years.

Compared with 2013, that’s 18,000 fewer sales for the segment every month. Even compared with 2016, that’s 6,500 fewer sales every month.

In what was historically a fleet-dependent corner of the passenger-car market, many automakers’ reduced emphasis on sales to daily rental companies plays a major role. Numerous players in the segment also attempted to move upmarket, further away from the midsize cars that now offer the requisite interior volume. It hasn’t turned out so well for some. Remember the Mitsubishi Diamante and Mercury Montego? We’ll soon forget the discontinued Hyundai Azera. The Ford Taurus is likely not long for this market, either.

Yet in a market that’s lost 17 percent of its sales this year, the Toyota Avalon has shed 28 percent of its year-to-date volume, a loss of 7,475 sales. With an all-new 2018 Camry set to generate more than its fair share of Toyota sedan sales, does the Avalon even deserve a place in Toyota’s 2018 lineup?

Indeed it does, as Toyota will launch the fifth-generation, TNGA-based Avalon in 2018. “We’re committed to Avalon,” says Toyota North America’s executive vice president for sales, Bob Carter.

Speaking to Wards Auto, Carter expressed the view that automakers did in fact see the crossover trend approaching, but that cars remain vital components in Toyota’s lineup. That’s reflected in the fact that Toyota’s brand boss Jack Hollis believes the industry will settle in with a 63/37 ratio of light trucks to cars, ending the passenger car sector’s rapid decline.

And while the launch of an all-new Camry looks like the very kind of event that could squeeze the already-fading Avalon out of Toyota’s lineup, Toyota’s Bob Carter believes the opposite is true. “Because we’ve taken Camry to such a significantly different place… that really increases the importance of Avalon.”

Toyota has sought to up the Camry’s performance ante and emphasize its sedan nature with lower ride height and more aggressive styling.

Previous to Carter’s exchange with Wards, a plant executive at the Georgetown, Kentucky, facility where the Camry, Avalon, and Lexus ES are assembled essentially confirmed the TNGA-based Avalon’s timing. With Carter’s commitment to the Avalon’s future, one wonders whether Toyota can produce the same kind of temporary rebound the fourth-gen Avalon achieved in 2013.

Toyota had averaged only 31,000 annual U.S. Avalon sales for the half-decade prior to the then-new 2013 Avalon’s launch. But then Avalon volume jumped to 70,990 units in 2013, a six-year high, albeit well off the 95,318-unit sales pace achieved in 2005 when the third-gen Avalon was launched.

U.S. Avalon sales fell 5 percent in 2014, 11 percent in 2015, and 20 percent in 2016. Through the first seven months of 2017, U.S. Avalon sales are down 55 percent compared with the model’s 2013 launch year. The Avalon is easily outselling the Buick LaCrosse, but trails the Dodge Charger, Nissan Maxima, Chevrolet Impala, Chrysler 300, and Ford Taurus by wide margins, claiming a 9-percent share of the segment.

[Images: Toyota]

Timothy Cain is a contributing analyst at The Truth About Cars and Autofocus.ca and the founder and former editor of GoodCarBadCar.net. Follow on Twitter @timcaincars.

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  • Krhodes1 Krhodes1 on Aug 15, 2017

    I had a brand-new Avalon as a rental from Savannah GA a few weeks ago. And now I know how you make a Camry worse. Make it bigger and more wallowy, but with that nice too low profile tire shudder/jiggle over bumps. My Grandmother would have loved the thing, but she is no longer with us. The radar cruise control was amusing though. It almost made up for the awful touch buttons all over the console, and the worst touchscreen ever made by the hand of man. Just not my cup of tea. This week's MB CLA may be a Jetta with delusions of grandeur, but it is soooo much better than a grannymobile.

  • La834 La834 on Aug 17, 2017

    It should be inexpensive to build a next-gen Avalon. Basically take a Lexus ES 350, tweak the styling inside and out, de-content it, and price it lower to compensate. Should be profitable even if they only sell 40,000/year or so.

  • Amy I owned this exact car from 16 until 19 (1990 to 1993) I miss this car immensely and am on the search to own it again, although it looks like my search may be in vane. It was affectionatly dubbed, " The Dragon Wagon," and hauled many a teenager around the city of Charlotte, NC. For me, it was dependable and trustworthy. I was able to do much of the maintenance myself until I was struck by lightning and a month later the battery exploded. My parents did have the entire electrical system redone and he was back to new. I hope to find one in the near future and make it my every day driver. I'm a dreamer.
  • Jeff Overall I prefer the 59 GM cars to the 58s because of less chrome but I have a new appreciation of the 58 Cadillac Eldorados after reading this series. I use to not like the 58 Eldorados but I now don't mind them. Overall I prefer the 55-57s GMs over most of the 58-60s GMs. For the most part I like the 61 GMs. Chryslers I like the 57 and 58s. Fords I liked the 55 thru 57s but the 58s and 59s not as much with the exception of Mercury which I for the most part like all those. As the 60s progressed the tail fins started to go away and the amount of chrome was reduced. More understated.
  • Theflyersfan Nissan could have the best auto lineup of any carmaker (they don't), but until they improve one major issue, the best cars out there won't matter. That is the dealership experience. Year after year in multiple customer service surveys from groups like JD Power and CR, Nissan frequency scrapes the bottom. Personally, I really like the never seen new Z, but after having several truly awful Nissan dealer experiences, my shadow will never darken a Nissan showroom. I'm painting with broad strokes here, but maybe it is so ingrained in their culture to try to take advantage of people who might not be savvy enough in the buying experience that they by default treat everyone like idiots and saps. All of this has to be frustrating to Nissan HQ as they are improving their lineup but their dealers drag them down.
  • SPPPP I am actually a pretty big Alfa fan ... and that is why I hate this car.
  • SCE to AUX They're spending billions on this venture, so I hope so.Investing during a lull in the EV market seems like a smart move - "buy low, sell high" and all that.Key for Honda will be achieving high efficiency in its EVs, something not everybody can do.
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