- Automakers are beginning to warm up to sedans again.
- After nearly a decade of crossover dominance, the industry is eyeing up to the possibility of resurrecting the four-door.
- This could potentially be charged by modified fuel economy standards and consumers growing tired of "boring" designs.
Cars have been getting bigger and more bloated for decades. American consumers have had a growing, seemingly insatiable appetite for crossovers and SUVs. Meanwhile, sedan sales declined, with some brands like Ford even giving up on the segment in the U.S.
But the four-door's hiatus could soon come to an end. Detroit's Big Three are reportedly looking at reviving their sedans. Not only could the move combat rising vehicle costs, but it may also help to offset regulatory changes to emissions should a proposal to reclassify crossovers as passenger cars instead of light trucks be successful.
According to a Sunday report from Automotive News, Ford, General Motors, Stellantis, and other automakers have at least shown interest in bringing back the sedan in some form.
From the report:
General Motors plans to introduce a Buick sedan built on the same platform as the next-generation Cadillac CT5 and Chevrolet Camaro, a source at a major GM supplier told Automotive News.
Stellantis, whose design chief says he’s gotten tired of SUVs, is considering a new car that would cost less than $30,000.
Ford Motor Co. CEO Jim Farley answered "never say never" when asked whether the automaker would revive sedans as an affordability play.
The report also cites interest from Infiniti, which reportedly plans to re-enter the sedan market in 2027, and Mitsubishi (which has told dealers that a "strategic shift" is coming in its product plan).
All of that raises an obvious question: after years of crossover dominance, what exactly changed?
Well, for starters, everything got expensive. The Average Transaction Price in the U.S. has quietly crept past $50,000 for new cars, largely padded by big SUVs and high-end EVs. Lenders have even resorted making seven-year auto loans the norm in order to offset monthly costs.
Meanwhile, some of the best selling sedans—the Toyota Camry and Honda Accord—start at around $30,000. In fact, both models—and sedans as a whole from the two brands—have been selling fairly well this year. For example, Honda sold nearly 22% more Accords year-over-year in Q1. Every model in the brand's portfolio remained close to break-even, excepting the redesigned Passport. Toyota also saw upticks across the board with the Corolla, Crown, and Camry all showing double-digit increases.
"It’s not that there isn’t a market there," said Ford CEO Jim Farley earlier this year, describing the sedan market as vibrant. "It’s just we couldn’t find a way to compete and be profitable. Well, we may find a way to do that.”
Stephanie Brinley, Associate Director of Auto Intelligence at S&P Global Mobility, told Automotive News that consumers are also beginning to find that crossovers are looking "kind of boring." She went on to note that automakers have a better opportunity to create expressive designs with sedans, which could potentially call consumers back into the four-door fold.
Then there's the proposed regulatory wrinkle that could reclassify crossovers as passenger cars.
A proposed ruling by the EPA in December would loosen federal fleetwide fuel economy standards to just 34.5 miles per gallon in 2031 (down from 50.4 MPG). However, the reclassification would also mean that crossovers are subject to stricter passenger car fuel economy requirements despite being "deliberatively designed" to be classified as light trucks, according to consulting firm AlixPartners.
Before you get too excited, this doesn't mean that sedans are going to become popular again overnight. The industry has been building out a crossover-filled lineup for more than a decade. However, there's this growing realization that maybe the industry overcorrected and consumers want something different. In the rush to chase higher margins, the industry may realize it left behind a segment that really does have demand.
As prices climb and regulatory agencies shuffle the rules, it's a natural time for brands to reconsider their strategy. Will the sedan every reclaim its primacy? That's unclear. But the body style certainly isn't dead yet.
