Sometimes, sacrifices must be made for the greater good. This trope is a Hollywood cliché used to portray a character’s internal turmoil with tough choices. However, sometimes, we see real-world examples of it, like General Motors’ (GM) recent decision.
In May, the company announced that the Chevrolet Malibu, a staple of American casual driving, will be discontinued in November 2024. Additionally, the Malibu plant in Fairfax, Kansas, is being flipped into an electric vehicle (EV) production facility.
The Malibu joins the Camaro on the shelf in a growing list of discontinued models from American automakers. Ford cut the Taurus and Fusion, and Dodge ended its gas-powered Challenger and Charger this year.
A Longtime Coming
GM’s decision was not just something that had happened.
According to Cox Automotive, sedans have fallen out of popularity in the United States, making up less than 20% of vehicles on the road.
Pickup trucks, SUVs, and crossovers have been outselling traditional cars for a long time.
Cox Automotive pointed out trends in vehicle sales, noting how the Chevy Equinox sold more than 20% of its units in the fourth quarter of FY2023. The Equinox is getting an electric replacement soon. The Silverado, also awaiting an electric replacement, sold 140,000 units, which is only a 1% year-to-year increase.
Photo Courtesy Haidong Liang
GM is also grappling with the fact that Chevy is no longer its leading brand. According to Cox Automotive, GMC, Buick, and Cadillac outsold it since 2019, with Cadillac having the best five-year sales performance. The Escalade had a 5% gain in 2023, and the electric Lyriq sold above 3,800 units. Outside of these gains, GM brands saw declines in sales as consumers found alternatives.
The Detroit-based company is reviving the Bolt with a higher-performance model, which the Malibu factory will produce going forward when the final sedan is produced. The 2025 Chevy Bolt is hailed as the flagship vehicle for the next generation of GM cars.
Steep Competition
Malibu’s popularity amongst consumers had been at an all-time low. Even though GM reportedly sold 130,000 Malibus last year, it was almost entirely for fleet needs.
GM and rival Ford had formidable competition with the popular Honda Accord and Toyota Camry. The price is one sticking point, but fuel economy and maintenance costs also affect consumer decisions. Now, Chevy is competing with Tesla’s dominance, making it harder to corner the domestic market.
Photos Courtesy Chevrolet Pressroom
“Honda and Toyota alike must be pleasantly surprised to see their competitors pack up and leave the mid-size sedan business,” Mark Schirmer, Cox spokesman, told CNN. “The segment remains sizable — over 900,000 mid-size sedans were bought in 2023 — and Honda and Toyota have excellent offerings, and now with little competition.”
Discontinuing the Malibu is shocking. The car had been a mainstay in the Chevy lineup since the 1970s when it was relisted as a consumer car after being a luxury sedan. However, the company had to decide the future of its lineup in the 2020s, especially with the increased adoption of EVs in the U.S.
The Kansas plant is undergoing a retooling to make EVs. GM Authority reported that GM will invest $391 million toward renovating the Malibu’s old factory. Some layoffs will happen, but GM says all United Auto Workers (UAW) members will be taken care of, per the UAW-GM agreement. The factory will build the 2025 Malibu before moving to Bolt and Cadillac X4T production.
GM wanted to build 400,000 EVs between 2022 and 2024 — Reuters reported it had abandoned this goal — missing the mark by a wide margin. The plan is to revamp existing trucks and SUVs into electric ones and adapt them for the Ultium charging network. Having an original charging network worked for Tesla, and GM hopes it will work for them.
What the Future Holds
Whether it truly does remains to be seen. Don’t forget that Chevy is part of the North American Charging Standard, which will see Tesla charging stations become universal by this summer. Chevy is expected to join the standard in 2025, raising questions about Ultium’s long-term future.
Photo Courtesy GM Authority
Seeing the Malibu go is tough, but GM has hinted they may revive the sedan in electric. Rumor has it the electric Malibu is coming in 2026 or 2027. No official plans have been revealed.
The Malibu’s retirement is not the first time GM has shelved the car. From 1983 to 1997, the sedans weren’t manufactured, but the decision was reversed, and they have been part of Chevy’s lineup ever since. The latest generation was built in 2016, but by then, it had already been passed by Honda, Toyota, and others.
GM feels revamping its lineup to zero-emission motors will help it compete with Tesla, Hyundai, and Rivian. The goal will be to provide more affordable options and take full advantage of the Inflation Reduction Act’s clean vehicle tax credits. Will GM dethrone Tesla and return to its former glory? That remains to be seen, but crazier things have happened.
