Toyota exec predicts end of sedan dominance, displaced by compact SUVs
Despite creating among the best selling cars in background in the Camry, Toyota considers the archetypal sedan -- almost interchangeable using the word "automobile" itself -- might not function as the prevalent mode of transport for considerably more. Its alternative? The compact SUV.
In accordance with Bloomberg, best Toyota USA executive Bob Carter, talking at a Toyota-sponsored vacation celebration in Detroit, foretold of another where the RAV4, the organization 's compact crossover, outsells the Camry. Carter even place his money where his mouth was: "I Will bet you lunch that can occur." Also, he believes this can happen within another five years.
The Camry has been America's best selling passenger-car for 13 years, and is estimated to reach 425,000 in revenue by 2015's ending. Relatively, Toyota calls it's going to sell 300,000 RAV4s, up 16% from last year. Yet, collectively, compact SUVs -- including the Honda CR-V, Nissan Rogue, and Ford Escape -- are already out-selling midsized sedans.
What is driving this change in purchasing patterns? Sport utility vehicles -- or more exactly, vehicle-based crossovers -- are getting better mpg than when truck-based sport-utilities first came into style in the 90s. There is not an economic punishment to be paid. Also, after 2 decades decades of sport utility vehicles, millennial auto buyers have grown-up with these as the default option vehicle of selection. As more of these make new automobile purchases, that view appears profoundly ingrained.
This comes as a shock even for Carter. "Five years back, if somebody might have mentioned compact SUVs would be out-selling midsize sedans, I likely could have questioned that." Toyota is prepared for the change. Though most RAV4s sold in the United States are assemble here, the automaker has already been importing Japan-created RAV4s to satisfy demand. A new plant being built in Canada is going to have the capacity to improve North American capability to 400,000. Pictures by Byron Hurd.Read Source
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