Tameron Hyundai announces Conservative Camry faces stiff competition.

Aug. 19, 2011 - PRLog -- Toyota Motor Corp. has dominated the midsize car market for 13 of the last 14 years. But as it prepares to launch the seventh-generation Camry sedan, it faces new and bolder contenders.

The Camry, often described as "plain vanilla" even by Toyota executives because of its bland, mainstream looks, has won a broad and loyal audience over the years because it's comfortable, reliable and holds its value.

But some of its redesigned rivals are challenging the notion that midsize car buyers prefer conservative vehicles.

Hyundai Motor Co.'s boldly styled Sonata sedan has surged in the rankings after nearly doubling sales in the past two years.

Detroit's automakers have increased their slice of the market, too, after fielding vastly improved models such as the Chevrolet Malibu and Ford Fusion.

"It's become harder for Toyota to be a slam-dunk," said Jesse Toprak, vice president of industry trends at TrueCar.com in Santa Monica, Calif.

"In the past, all they had to worry about was the (Honda) Accord. Now they have to worry about the Sonata, the Malibu, multiple competitors."

People familiar with the new Camry sedan making its public debut next week say it hews to the traditional, conservative look that has defined the car for years.

"They're not re-inventing the Camry with this design," said Jeff Schuster, executive director of global forecasting for J.D. Power and Associates. "Clearly, the new Camry is evolutionary."

Toyota will unveil the car on Tuesday at the Automotive Hall of Fame in Dearborn.

Some Toyota dealers pressed the automaker to be bolder with the new Camry. One dealer said Toyota is expected to make outward changes to the car in the next two years, even before the traditional mid-cycle "facelift" that most models undergo.

Toyota declined to comment.

Masaki Taketani, a Northville-based analyst at IHS Automotive, said the Camry faces much tougher competition now. "It's very tough for Toyota and it may have to change its conception of what the car should be," he said.

Still, even in its last months, the outgoing Camry has held its competitors at bay. It has remained No. 1 in its segment despite a run of misfortunes at Toyota — the collapse in 2008-09 of the U.S. auto market, record safety recalls and then a devastating quake this year in Japan.

In this context, the automaker has a lot riding on the new Camry. A successful launch would help Toyota reassert its standing as a dynamic competitor.

On the other hand, a sluggish start would reinforce the perception that the normally sure-footed Japanese are stumbling. The launch of Honda's Civic compact was derailed by the quake, and the car is getting mixed reviews.

The Camry faces an array of refurbished rivals, including a new Volkswagen Passat.

But Toyota executives see the greatest challenge coming from the Sonata.

"The Sonata of Hyundai would be the competitive vehicle" in this segment, Takahiko Ijichi, a senior managing officer at Toyota, told investors this month on a quarterly earnings call.

The Sonata was the most researched vehicle on the North American Dealer Association's NADAguides.com in the second quarter, said Troy Snyder, site product development director.

The Camry is consistently among the most researched vehicles, he said, but "this is something we're not used to with Hyundai. We've never seen the Sonata with this much energy."

Compared with the Sonata's flashier looks, conservative designs tend to age better, say Volkswagen executives. Their new Passat also is conservatively styled.

But some analysts disagree. "That's an old-fashioned way of thinking," Toprak said. "The Sonata is the biggest competitor to the Camry now."

The Sonata and Accord will be its main direct competitors, he said. But he expects consumers to engage in more cross-shopping of domestic competitors, such as the Chevrolet Malibu, which is being replaced next year, and the Ford Fusion.

Both cars are more popular and command higher prices than their predecessors, which were designed at a time when Detroit's automakers were focusing on their light trucks.

Now everyone's battling for a bigger share of the midsize car segment, which is growing as drivers switch out of full-size cars and crossovers, Taketani said.

IHS predicts sales in the segment will rise to 2.5 million in 2015 from 2.1 million this year.

Midsize cars start as low as $19,000, but the economies of scale make the segment lucrative for automakers — and helps them reduce their overall mileage scores to comply with stringent regulations.

With the segment set to expand, there may be room for more variety, Schuster said.

"The success of the Sonata does suggest an appetite for more assertive design," he said, "without compromising demand for the standard midsize entry that the Camry has become."

Visit Tameron Hyundai today for your next NEW HYUNDAI SONATA!!!!
www.tameronhyundia.com

# # #

Tameron Hyundai is the premier Hyundai dealer in Birmingham, Alabama. We carry the full Hyundai line and offer the customer service in town. We have an award winning service and parts department as well. Come see us at 1595 Montgomery Hwy.