Despite Being Among Chevy’s Top-Selling Models, the Malibu Couldn't Avoid this Fate

Despite Being Among Chevy’s Top-Selling Models, the Malibu Couldn’t Avoid this Fate

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Chevrolet has decided to halt the production of the Malibu—the last remaining sedan in its lineup—to revamp the assembly plant that currently manufactures this four-door vehicle, making way for the imminent Chevy Bolt. While it might appear as another setback for sedans, which have been losing ground to full-size trucks and SUVs in the U.S. over the past decade, the Malibu’s discontinuation comes as a surprise given that over 130,000 units were sold in 2023, as reported by Automotive News.

Despite not reaching its past sales heights—and likely a significant portion being destined for rental fleets—the Malibu was still performing relatively well, taking the third spot in sales behind the Equinox and Silverado in the most recent year according to Chevrolet. Sales of the Malibu hit a peak in 2016, when over 227,000 units were sold, but a drop of approximately 97,000 units from the peak in the mid-2010s indicated a troubling trend. However, the sedan managed to boost its sales in 2023 compared to 2022, during which Chevy sold just over 115,000 units. So, what led to this decision?

It would have been more logical for Chevy to discontinue the Malibu if its sales were as dismal as the recently dethroned Subaru Legacy, which saw around 25,500 sales in 2023. So, why would Chevy forgo these sales opportunities?

According to the carmaker’s official announcement, this move is in preparation for the new Bolt. According to GM:

As previously communicated, GM is investing about $390 million in our Fairfax Assembly Plant to produce the new Ultium-based Chevrolet Bolt EV, offering one of the most cost-effective all-electric vehicles with enhanced driving, charging, and ownership experiences.

To facilitate the installation of machinery and site adjustments, after nine generations and over 10 million global sales, GM will cease Malibu production in November 2024 and temporarily halt production of the Cadillac XT4 after January 2025. This pause will result in a temporary layoff for affected workers, who will receive support as outlined in the UAW-GM agreement.

Upon production resume by late 2025, Fairfax will manufacture both the Bolt EV and XT4 on the same production line, providing GM with versatility to adapt to shifts in consumer demand.

General Motors

GM intends to make way for EVs at the present Malibu production site within the Fairfax Assembly and Stamping facility in Kansas City. This manufacturing plant also produces the Cadillac XT4, another crossover model which will have production paused next year, to be resumed when the plant is ready to commence assembly of the upcoming Bolt alongside the gasoline-powered Cadillac.

General Motors

While GM’s official stance attributes the Malibu’s demise to the need for making room for the Bolt in Fairfax, this rationale is questionable considering that the ICE-powered XT4 will continue to be produced at the same location. The remaining distinction is that the XT4 is a crossover—one with a “luxurious” image at that—contrasting with the Malibu’s classification as a modest (read: less profitable) sedan.

The skeptical perspective suggests that the decline of the Malibu might be related to sedans generating narrower profit margins, as opposed to full-size pickups and crossovers which typically yield higher profits for automakers. For instance, Chevy sold 555,000 Silverados in 2023, while the Chevy Equinox achieved nearly 213,000 in sales. The discontinuation of the Malibu brand is primarily attributed to Chevy’s high hopes for the upcoming Bolt EV model, in which GM has invested $390 million.

It’s not the initial instance where Chevy has opted to discontinue the Malibu: the car’s initial production spanned nearly two decades, from 1964 to 1983. During that period, four generations of the Malibu were introduced, but it wasn’t until 1997 that the front-wheel-drive Malibu reappeared and won the prestigious Car of the Year award from Motor Trend.

The fifth-generation Malibu paved the way for another four iterations (making a total of nine) that were in continuous production for an additional 27 years, surpassing the duration of the Malibu’s initial production run. It seemed like the resilient Chevy sedan would survive the recent sedan scarcity. However, even though it may have thrived based on sales alone, the Malibu is being phased out to give the new Bolt a chance.

I hardly have any objections to a dependable ICE-equipped sedan fading away to make room for an economical EV, but I do wish GM would expedite the release of an affordable EV sedan, rather than focusing solely on the crossover-esque Chevy Bolt. The U.S. is in urgent need of small, budget-friendly EVs, and the Tesla Model 3 could certainly benefit from a competitor from the major American automakers.