Zachary Berry
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GM to Sedans: “Never Gonna Give You Up”

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Even with other domestic automakers abandoning the passenger car segment, GM is determined to stick with its sedans

2018 Chevrolet Malibu

GM’s sedan strategy will either gift it with a competitive advantage or cost it even more money

In 2016, passenger cars made up 46 percent of Chevrolet’s new vehicle sales. That market share is currently down to a mere 32 percent.

Even so, General Motors is not ready to give up on sedans just yet. Indeed, while Ford and Fiat Chrysler appeared to have abandoned the segment, GM is reportedly doubling down on sedans.


New Sedans for the Segment: Introducing the 2019 Chevrolet Spark


“It’s a pretty big opportunity for us,” explains Steve Majoros, Chevrolet’s marketing director. “If other competitors are leaving, we’re very happy to pick up that business, and we’ll certainly do that.”

To GM, the sedan segment is a useful tool for introducing customers to its brand via entry-level products. While shrinking, the market for such vehicles is still sizable, with an estimated 4 million customers at the moment.

Chevy’s passenger cars are back with a brand-new style

Many of GM’s brands have already invested in future entries for their respective compact and midsize sedan segments. Chevrolet is set to add updated versions of its Spark, Cruze, and Malibu vehicles for the 2019 model year. Furthermore, Chevrolet will invest in every sedan category sometime during the next few years.

Of course, GM’s brands will still be introducing new crossovers and SUVs during this time. Cadillac is adding the XT4 to its lineup sometime in the next few months, and the Chevrolet Blazer will be making its official return early next year.


Award-Winning Models: Chevy Traverse, Malibu named on 10 Best Family Cars 2018 list


Majoros feels that car sales have “hit the floor” in terms of sales losses, and he expects them to stabilize sometime in the near future. In GM’s view, Ford and FCA removing their sedan models from the market reduces competition.

If GM is wrong, however, then it could stand to lose even more money on a segment with an already declining market share. Only time will tell if GM’s sedan-based strategy pays off.

News Source: Jalopnik

Zachary Berry currently resides in the Dayton, Ohio area. However, he enjoys traveling from place to place, as he was born in Oklahoma City and has also lived in Albuquerque and Orlando (such is the life of a military brat). Zachary graduated from Ohio University with a major in Strategic Communication, which is fancy talk for advertising and public relations. Beginning his career at The News Wheel as a lowly intern, he was able to climb his way to the top, eventually claiming his place within the last cubicle on the left. Other jobs that Zachary has held include driving around a safari truck at Disney’s Animal Kingdom. When he’s not putting his nose to the grindstone, Zachary enjoys watching and critiquing movies and television. See more articles by Zachary.