General Motors to Discontinue Production of Chevrolet Malibu as Focus Shifts to Electric Vehicles

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ICARO Media Group
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09/05/2024 21h30

In a move reflecting the changing trends in the U.S. auto market, General Motors (GM) has announced that it will cease manufacturing the Chevrolet Malibu, the last midsize car made by a Detroit automaker. The decision comes as GM directs its attention toward the production of electric vehicles (EVs).

Once a popular choice for American families, the Chevrolet Malibu has seen its sales dwindle in recent years, losing ground to the rising popularity of SUVs and pickup trucks. In fact, full-size pickups from Ford, Chevrolet, and Ram have become the top-selling vehicles in the country, with Toyota's RAV4 small SUV as the leading non-pickup option.

According to Motorintelligence.com, midsize cars accounted for a mere 8% of U.S. new vehicle sales last year, a significant decrease from the 22% market share they held in 2007. However, despite the decline, the midsize car segment witnessed a slight revival in 2021, with sales recording a nearly 5% increase.

GM's decision to discontinue the Malibu comes after the company sold just over 130,000 units in 2021, marking an 8.5% decline compared to the previous year. The introduction of a redesign in 2016 led to a temporary boost in sales, peaking at almost 230,000 units. However, many of these sales were to rental car companies, yielding lower profits.

GM's Kansas City factory, which currently produces the Malibu along with the Cadillac XT4 small SUV, will cease manufacturing the Malibu in November and the XT4 in January. The facility will undergo a $390 million retooling process to accommodate the production of a new version of the Chevrolet Bolt, a small electric car.

The reconfigured plant, set to begin production of the Bolt and the XT4 on the same assembly line in late 2025, aims to provide flexibility in meeting customer demands, as per GM's statement. The move aligns with GM's commitment to electrification and its goal of offering a wide range of electric vehicles to cater to evolving consumer preferences.

The Wall Street Journal initially reported on the discontinuation of the Chevrolet Malibu, highlighting the shift in GM's production strategy amid the surging popularity of EVs and the dominance of SUVs and trucks in the U.S. auto market.

As the Chevrolet Malibu bids farewell after a storied run that spanned nine generations, GM's decision echoes the industry-wide shift towards electric mobility while adjusting to changing consumer preferences.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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