By William Maley
Staff Writer - CheersandGears.com
May 10, 2013
While the midsize sedan market as a whole remains the single largest segment in the U.S., sales of the Honda Accord and Toyota Camry are shrinking due to the rise of crossovers.
"While the segment is still growing year-over-year, it's nowhere near what it was growing last year as the industry was launching a lot of new midsize cars," said Bill Fay, the U.S. head of the Toyota brand.
The rise of crossovers are being fueled by their practicalness, ability to get in and out much easier, and improved fuel economy. The price gap between midsize sedans and crossovers has also narrowed. Kelly Blue Book says a crossover costs $1,300 more on average than a midsize sedan. To put it another way, the difference in monthly payments between a midsize sedan and a crossover is less than $20.
"Fundamentally, both serve the family market. Midsize cars have gotten smaller and more expensive, because of a variety of factors. People are switching to crossovers, because they satisfy the family needs very well," said Mustafa Mohatarem, General Motors Co's chief economist.