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Chevy, Lincoln dealers say they still want sedans

Detroit automakers have famously turned their backs on sedans as they make the strategic bet to double down on money-making trucks and SUVs, but dealers for at least two American brands are giving the companies contrary signals. In separate recent interviews with leading national dealer councils for Chevrolet and Lincoln, Automotive News reports that both brands’ dealers still see a need for cars. The publication published a Q&A interview with Mike Bowsher, chairman of the Chevrolet National Dealer Council, who said Chevy dealers managed to hold onto market share last year despite the phase-out of the Cruze compact sedan and hatchback, thanks to products like the Spark and Sonic subcompacts and the Trax and Equinox crossovers. But, he acknowledged, “We do feel like we could use a car, especially in the low-MSRP range.” The comments follow similar recent comments from Tom Lynch, who chairs the Lincoln National Dealer Council. He told AN, “If weÂ’re not in segments where there is still a good amount of business, I think the company and the dealers lose out.” The Cruze was one of the victims of GMÂ’s November 2018 announcement of plant closures, with production having ceased with the closure of GMÂ’s Lordstown, Ohio assembly plant last year. GM sold 47,975 Cruzes in 2019 but a healthy 142,617 in 2018. At Lincoln, Lynch said the council has been telling the company it needs to stick with the sedan segment, despite plans to kill the MKZ sedan in the coming months and unconfirmed reports that the Continental isnÂ’t long for this world, either, despite the buzz of the suicide-door Coach Door Edition, shown in the photo above. Lincoln sold 17,725 MKZs and 6,586 Continental sedans in 2019, down a combined 15%, but still good for almost 22% of overall Lincoln sales. It's worth noting that Lincoln competes in a luxury segment that still expresses allegiance to four- and two-door cars. Even Cadillac, its cross-town rival, is staying active with the upcoming CT5 and CT4 sedans. Lynch pointed to Tesla as evidence that strong sedan products can resonate with consumers, though he conceded that “What that looks like for Lincoln going forward, IÂ’m not sure of.” For now, anyway, Chevy still offers the Sonic and Spark subcompacts, the latter of which saw sales climb 32.5% in 2019 to 31,281 (Sonic sales fell nearly as steeply).

Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

7 major automakers to build open EV charging network

A new joint venture established by BMW, GM, Honda, Hyundai, Kia, Mercedes-Benz and Stellantis will build a new North American electric vehicle charging network on a scale designed to compete with Tesla's industry-benchmark Supercharger network. The 30,000-plus planned new chargers will accommodate both Tesla's almost-standard North American Charging System (NACS) and existing automakers' Combined Charging System (CCS) options, effectively guaranteeing compatibility with the vast majority of current and upcoming electric models — whether they're from one of the involved automakers or not.  "With the generational investments in public charging being implemented on the Federal and State level, the joint venture will leverage public and private funds to accelerate the installation of high-powered charging for customers. The new charging stations will be accessible to all battery-powered electric vehicles from any automaker using Combined Charging System (CCS) or North American Charging Standard (NACS) and are expected to meet or exceed the spirit and requirements of the U.S. National Electric Vehicle Infrastructure (NEVI) program." Critically, the automakers involved will have a say in how the charging tech is implemented, guaranteeing that the hardware will play nicely with each automaker's in-house charging systems. Hyundai and Kia, for example, were hesitant to jump on board the Tesla NACS bandwagon earlier this year over concerns that the Supercharger network is insufficient for powering the two automakers' 800-volt charging systems; similar tech is used by Volkswagen and Porsche.  In addition to providing much-needed capacity and high-output charging for America's growing fleet of electric cars and trucks, the new network will integrate seamlessly with each automaker's in-app and in-vehicle features, rather than forcing customers to use third-party tools and payment systems, as is the case with some existing public charging infrastructure.  "The functions and services of the network will allow for seamless integration with participating automakersÂ’ in-vehicle and in-app experiences, including reservations, intelligent route planning and navigation, payment applications, transparent energy management and more. In addition, the network will leverage Plug & Charge technology to further enhance the customer experience," the announcement said.