Are We Heading For A Future Where Dealers Only Sell Crossovers?

Industry News

Seriously, if it were up to dealerships there wouldn't be any sedans at all.

It's just a matter of time before the crossover becomes the most popular body style on the market. The sedan is dying out as the ideal car of choice, and the crossover is the number one reason why. Speaking with Automotive News, executives from several dealerships in the US discussed the specifics of how crossovers relate to their brands. In many circumstances, the people in charge of the dealerships are realizing that SUVs and crossovers are far more profitable. Are we entering a future where dealerships don't even stock sedans?

Volkswagen was an interesting topic. Michael DiFeo, dealer principal at Linden Volkswagen in Roselle, NJ, said that "The Atlas is the first time that we'll be in this large [crossover] segment, getting the larger Tiguan is huge for us considering the growth of that segment." Volkswagen has been struggling for years without a three-row crossover, and now it is bringing two new models to the US market to help fill the void. Timothy Kraemer, general manager of BMW Minnetonka, Minnesota, said "We had too many sedans and not enough SUVs, the X3 and X5. It is a matter of adjusting production and having the right amount of cars at the right time."

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This makes us feel even worse. We love BMW sedans, especially the M models. However, if the dealerships can't sell them, it means that BMW may start to focus more on its SUVs than sedans and sports cars. Jim Morino, owner of Acura of Lynnwood in Washington, said 2016 "was a tough year." Sedan sales were slow, but RDX and MDX supplies couldn't meet demand. Acura is now trying some new things to get people into showrooms, which we can only assume will involve more SUV and crossover models. The key takeaway from these interviews is clear, dealerships barely want to sell sedans anymore. Even new entrants to the market like Jaguar are quickly discovering how profitable SUVs are. Better get used to the new world order.

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