Can the new Camry stay on top?
SEATTLE -- Now comes the real test for Toyota as it battles back from two years of turmoil: how to keep the Camry -- America's best-selling car for nine years running -- on top of the heap.
Toyota's low-risk, evolutionary redesign would seem a safe bet, but the world has changed for both Toyota and the Camry.
Not only has the brand been damaged since the current Camry debuted; the mid-sized sedan segment has been turned on its head. The Hyundai Sonata, Ford Fusion, Chevy Malibu and Nissan Altima have been climbing up the charts.
And competition is heating up. The Camry, which goes on sale Oct. 3, is the first of several redesigns planned in the mid-sized segment in the next year. New versions of the Altima, Malibu, Honda Accord and Volkswagen Passat are on the way.
Toyota will have its hands full if the competition comes out with bolder designs and significant new technology. The Camry's interior is upgraded, with stitched leather on the dashboard, for example, and slightly more room. But the powertrains -- though capable and efficient -- are carryovers. And the exterior design is plain vanilla, little changed from the current model.
Why didn't designers take more risks with the Camry's styling?
"Styling like the Sonata's is not a quick way to get to 400,000 sales," said Toyota Division General Manager Bob Carter.
The Sonata's flashy look is one of the top three reasons people buy the car, according to a study by J.D. Power and Associates. But design can be polarizing. Power says the Sonata's appearance also is among the top three reasons people don't buy the car.
Still, exterior styling also was cited as a key reason shoppers avoid the Camry. And in a new trend, Power says a significantly higher percentage of Camry buyers said "the deal" was a more important reason than reliability when buying a Camry.
Compete Automotive, a research group in Boston, says the Camry lost its position last year as the most-shopped car among interested buyers.
For four consecutive months in 2010 -- while Toyota writhed under congressional scrutiny of its unintended acceleration crisis -- the Sonata topped the list while Camry interest hit all-time lows, said Dennis Bulgarelli, director of Compete's automotive consulting unit.
Interest in the Camry has rebounded this year thanks to hefty end-of-cycle incentives. But the Sonata is still strong, and interest in the Fusion, Malibu and Nissan Altima is much higher than in the past, according to Compete.
"We're seeing a lot more cross-shop interaction than before," Bulgarelli said. "Camry still hasn't lost its cachet. You still look at a Camry even if you are a Fusion customer, but even the Kia Optima is getting attention now."
Rebecca Lindland, director of strategic review for IHS Global Insight, says the incremental changes to Camry might not be enough. She says the Camry and Honda Accord's days as the segment's one-two punch may be numbered.
"The trend is weakening toward those two magnets," Lindland said. "We are seeing Toyota and Honda struggle to keep their position. Hyundai is growing. The Ford Fusion is gaining traction. There are incremental volumes that Camry is losing."
This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com