There’s nothing clearer in the U.S. auto market than the hard pivot away from sedans. Consumers are flocking to crossovers and SUVs, leaving most automakers to axe their sedan models. Now the Toyota Avalon becomes the latest casualty of changing consumer sentiment.
Automotive News reports that Toyota has notified its suppliers the Avalon will cease production after the 2022 model year. This means there will not be a 2023 model in North America. The Avalon is produced at Toyota’s Kentucky assembly plant, which also builds the Lexus ES, Toyota Camry and RAV4 Hybrid. Assembly plant employment is unlikely to be impacted by the Avalon’s death.
The logic behind the Avalon’s death is fairly straightforward. Sales of the large sedan have been stagnate in recent years. In fact, sales volumes have dropped below 20,000 a year, which in Toyota terms is very low volume.
It’s unclear if Toyota will indirectly replace the Avalon with a new model. The more likely path is that development dollars that would have gone to Avalon will go to the Camry, since there’s little to no chance Toyota axes one of its most-popular nameplates.