Subaru Says Sedans Are Still Working, Doubles As Contingency Plan

Ford’s announcement that it will eventually eliminate every sedan from its domestic lineup has forced the automotive media to consider which automaker will be next to cart theirs off to the guillotine. Due to the growing popularity of crossovers and their inherent profitability, it’s probably just a matter of time until another manufacturer tosses all of its sedans in a burlap sack and drowns them in the proverbial river.

General Motors seems ready to abandon the Chevrolet Impala and Sonic, and Cadillac’s ATS, CTS, and XTS will soon be replaced by two unnamed sedans. Buick’s Lacrosse also looks to be a likely candidate for execution, and rumors exist that Caddy’s CT6 may also be destined for death. However, while rumors swell that American automakers are just years away from from killing the four-door car, Subaru says sedans remain totally relevant.

As a smaller but rapidly growing manufacturer (domestic sales have tripled since 2010), it’s dangerous for the brand to become too reliant on a single segment. If the market suddenly shifts, Subaru knows it’s better not to get caught with its pants down. In fact, it’s almost as if the company’s national manager of product communications, Dominick Infante, is counting on that.

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Lexus Knows It Needs to Improve Its Sedans or Prepare Them for a Merciful Death

With crossovers on the rise, and more car-like than ever, Toyota’a global branding chief Tokuo Fukuichi knows that Lexus sedans need to offer more to customers or prepare to join the Tyrannosaurus rex in extinction. Lexus has shifted to become SUV-inclusive, but sedans still comprise a large portion of its lineup.

Lexus’ strategy is to improve the driving dynamics on its sedans to a level that crossovers cannot match, using the lower center of gravity to their advantage. It also wants to make its more traditional cars more appealing to a broader and less-stodgy consumer base. Assuming the plan works, Toyota’s premium brand won’t need to engage in any automotive genocide, eliminating sedans altogether. However, like any automaker, Lexus is still likely to transform its lineup to appease on-trend demands — which could include a station wagon.

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December Sales Were so Good That Lexus Ran Out of SUVs in January

December is typically a peak month for automotive sales, especially among premium brands. With more holiday-themed ads than the majority of its competition, Lexus always sees the year’s final month of sales as its best. However, it did so well last December that January saw a 26 percent drop in sales due to an exhausted supply of sport utility vehicles.

With the narrowest of exceptions for the LX, last December turned out to be the best month in the history of all of Lexus’ SUVs. The bad news is that most of those sales came at the expense of the automaker’s sedans, which saw comparatively low sales. At around 41,000 units, December 2016 wasn’t all that much different from 2015. However, cars made up a significantly smaller piece of that pie.

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  • Probert They already have hybrids, but these won't ever be them as they are built on the modular E-GMP skateboard.
  • Justin You guys still looking for that sportbak? I just saw one on the Facebook marketplace in Arizona
  • 28-Cars-Later I cannot remember what happens now, but there are whiteblocks in this period which develop a "tick" like sound which indicates they are toast (maybe head gasket?). Ten or so years ago I looked at an '03 or '04 S60 (I forget why) and I brought my Volvo indy along to tell me if it was worth my time - it ticked and that's when I learned this. This XC90 is probably worth about $300 as it sits, not kidding, and it will cost you conservatively $2500 for an engine swap (all the ones I see on car-part.com have north of 130K miles starting at $1,100 and that's not including freight to a shop, shop labor, other internals to do such as timing belt while engine out etc).
  • 28-Cars-Later Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses. https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible Given these facts, how did Tesla ever produce anything in volume let alone profit?
  • AZFelix Let's forego all of this dilly-dallying with autonomous cars and cut right to the chase and the only real solution.