Chevy Market Man: Impala Fleeing from Fleet Sales..Focus on Retail

Chevrolet's Impala earned a reputation as a rental car for most of the last decade. Very few were purchased by real buyers and the Impala became the quintessential fleet vehicle.

Chevrolet is trying to change all that with its all-new 2014 Impala, making it a solid competitor to the Ford Fusion, Toyota Avalon, Nissan Maxima, Kia Cadenza, Hyundai Azera, Chrysler 300, Dodge Charger and even the Buick LaCrosse (Impala shares the same platform with GM's LaCrosse).

The Impala competes in the large sedan segment, which totaled about 600,000 units in 2012. Last year, Impala was the sales leader in the segment, driven mainly by fleet sales.

When the 2014 Impala went on sale recently, it was actual retail customers who got the first 500 models, says Jon Hahn, marketing manager for Impala. Chevy is trying to flip the ratio of fleet vs. retail sales for the 2014 model, two-thirds of which went to fleets last year.

The first Impala models sold were on dealer lots for less than one week. "We're just filling the pipeline now," Hahn says.

"We're focusing on retail sales this year," Hahn says.

The 2014 Impala comes in three trims and offers buyers four-cylinder and V-6 engine options. The base model LS, which Hahn forecasts will account for 25 percent of Impala sales, has a starting price of $27,550. The LT model should garner 55 percent of sales, and has a start price of $29,785. The flagship LTZ is predicted to capture the remaining 20 percent of sales and starts at $34,555. Hahn also estimates average transaction prices will be under $30,000 for the LS, mid-to-upper $30,000s for the LT and under $40,000 for the LTZ.

Hahn expects 60 percent of Impala buyers to choose V-6 engines. The V-6 commands a premium of slightly under $1,000. Hahn also expects almost half of Impala purchasers will take the Safety Package that includes blind spot monitoring, lane departure warning and rear cross traffic warning. -- Herb Shuldiner, Motor Matters

Copyright, Motor Matters, 2013

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