2022 models being cancelled, what do they mean for the industry?

Change is inevitable, cars get cancelled, replaced, renamed or even just put on hold. But these changes often are part of a larger trend, generally years in the making. However, in looking at the retiring class of 2022, there are a few trends worth reading into a bit further.

Small cars, smaller price

1. Chevrolet Spark
2. Hyundai Accent

The Chevrolet Spark joins its former showroom-mate, the Chevrolet Sonic in the new car lot in the sky. The $14,595 Spark is the cheapest new car one can get and one of the very few cars with a base price under $17k.  And at 143” long (9 inches shorter than a MINI Cooper), it is one of the smallest, despite being a 5-door. The Hyundai Accent, the spiritual successor to the Excel, is the 5^th least expensive car available. Given the ongoing vehicle shortage, it should not come as a surprise that cars priced around one-third of the average transaction price of a new car are not exactly the most profitable way to use a limited number of microchips and other resources.

It’s not just cheap cars

1. Volkswagen Passat
2. Mercedes-Benz A-Class
3. Nissan Maxima*
4. Chrysler 300*
5. Kia Stinger*

It’s always sad to see a long-standing model like the Passat meet the end of the road. Just over a decade ago, it went large, diverging from the European model.  Refreshed for 2020, the Passat’s large car room and elegant styling for midsize car pricing just wasn’t enough. Unlike the Passat, the Mercedes A-Class after just 4 model years is proudly small.  But while it was added with an eye towards allowing the CLA to move a bit upmarket, ultimately the market wasn’t large enough to support both models. The Maxima, 300 & Stinger actually do survive through the 2023 model year, but seeing as how they’re 3 of the 5 large sedans on sale, they beared mentioning at this juncture. So then why are these models that sell for not insignificant sums of money getting the ax? Simply put, the sales volume doesn’t support their continued existence. And those looking for large vehicles or pricier ones are more and more looking towards SUVs.

Coupes still suffer in an SUV world

1. Infiniti Q60
2. Hyundai Veloster

The Infiniti Q60, previously known as the G35/G37 Coupe still traces back its platform to the 2003 G35 Coupe. Despite that, the less of a RWD and good looking performance coupe hurts. One upshot is that its turbocharged V6 lives on in the Nissan Z, a good looking modern yet faithfully retro sports car. As for the Veloster, ok, it’s not really a coupe, and frankly after all these years, we still don’t know what to make of that asymmetric doors. But the common thread here is fun cars that aren’t the most practical find less of a place in this SUV world.

Even SUVs get cut sometimes

1. Buick Encore
2. Nissan Rogue Sport
3. Ford EcoSport
4. Toyota C-HR

Just as video killed the radio star, SUVs killed the small & large car. But now there’s so many SUVs on the market that in-fighting leads to SUV on SUV tournament style elimination. But one thing these SUVs have in common with the small cars mentioned earlier is that they’re at the smaller and less pricey end of the market. Some, like the Rogue Sport & C-HR are getting squeezed out in their lineups, others like the EcoSport or Encore simply are the lowest end of their respective lineups, there’s a newer, more expensive and more profitable vehicle in the line up they’d rather you consider.

Supercars too good for this cold, cruel world

1. Acura NSX
2. Ford GT
3. Lamborghini Aventador & Countach

The Acura NSX was legendary from the time it launched until it was first cancelled in 2002. The return of the NSX as a heavier AWD hybrid that while still an impressive vehicle, hasn’t been quite as successful. The Ford GT, however was always intended as a limited production model and same goes for the 1-model-year-only Countach. The Aventador, after 11 years on the market was bound for retirement eventually. One thing likely is that each of these are likely to return eventually more likely as an EV in the case of the NSX or GT, or as a PHEV in the case of the Aventador (which won’t be called that). The Countach? As a homage to the original Countach, it may come around again another 30 or 40 years from now when the next planetary alignment harkens it back from the beyond.

Honorable mentions (ie: don’t read into these too much)

There’s some cars that are reaching the end of the road, but it isn’t what it seems.  Some are being replaced by a rose with a different name (does it not smell just as sweet?), some are merely going on hold for now.

1. Acura ILX
2. Toyota Avalon
3. Chevrolet Trax
4. Honda Insight
5. Hyundai Ioniq (not to be confused with the IONIQ 5)

The models on this list may be going away, but that’s not really what happening.  The Acura ILX, which other than a few refreshes is still in its first generation after a decade, is effectively being transmorphed into the resurrected Integra, even if that’s not the association Acura was seeking. Just as the 1995 Avalon replaced the Cressida, the Crown replaces the Avalon. No longer just a large sedan, a Lexus without the badge or price so to speak, the Crown is an AMC Eagle or Subaru Outback Sedan type of crossover of crossovers. Hybrid only and priced just a bit above the Avalon Hybrid, it’s an interesting upmarket move.  The Trax is taking a 1-year hiatus and is coming back in 2024, not much else to say there. The Honda Insight and Civic Hybrid have traded on and off the last few generations, and while it’s not here yet, there is a Civic Hybrid coming. The Insight name may come back one day, but probably as an EV SUV if anything. Lastly, the Ioniq, Hyundai’s Prius-like Hybrid, PHEV & EV may be exiting stage left, but in some sense its been replaced already with the IONIQ 5 and there’s reason to believe that in addition to the IONIQ 6 & 7, there’s likely to be a 3 & 4 that slot in below it.