“General Motors or GM plans to introduce two new crossovers from Chevrolet and Buick to address affordability issues left by discontinued, less expensive sedans.”
Investors and consumers are increasingly concerned about affordability. According to Cox Automotive, the average price paid for a new vehicle this year has risen to more than $48,600. This is a $5,200 increase from two years ago and a $11,700 increase from five years ago. According to Cox, higher prices have driven approximately 10% of traditional new car buyers out of the market.
General Motors or GM plans to introduce two new crossovers from Chevrolet and Buick to address affordability issues left by discontinued, less expensive sedans.
Michelle Krebs, executive analyst at Cox Automotive, said, “Automakers have made a choice to focus, especially during the chip crisis, to focus on bigger, more expensive, more profitable vehicles. But there clearly is demand for less-expensive vehicles.”
GM, like its competitors, has largely phased out traditional sedans in favour of popular, larger crossover vehicles. The issue is that those smaller vehicles were among the most affordable in the industry and have yet to be replaced by anything comparable in size and price.
While non-domestic automobile manufacturers like Toyota Motor and Hyundai Motor keep selling sedans, prices have steadily risen, and those options have been scarce in recent years due to supply chain issues.
Chevrolet expects the Trax – a familiar name for the brand but an all-new car – to be its third best-selling vehicle after cutting all sedans except the Malibu. That would put the Trax behind the Silverado full-size pickup and the Equinox compact crossover, but ahead of the Chevy Tahoe, which sold over 105,000 units last year.
The new Buick Envista 2024 and redesigned Chevrolet Trax 2024 crossovers from GM start at $22,400 and $20,400, respectively. As a result, they are priced competitively with sedans from other automakers. According to Russell, the Envista is expected to be one of Buick’s best-selling vehicles, with some potential buyers described as “segment orphans” due to a lack of sedans.