Virtually all of us “experts” long, long ago dismissed the minivan as a dead concept, ravaged and then destroyed by the bilious contempt of Baby Boomers who suffered through years of transporting their kids in “little milk trucks” because that was the sensible and affordable transportation option in the spittle-wipe-up years.
For a decade now, the accepted wisdom has been that once you’re out of the parent trap, it’s on to an SUV. Yet lo and behold, the minivan is very much alive, reinvigorated by the sheer practicality of the thing — along with new designs and technologies, and most important of all, thousands and thousands of dollars in discounts on Fiat Chrysler’s Dodge Grand Caravan kiddy-hauler.
In Canada, Grand Caravan sales are up nearly 25 per cent and the U.S. minivan market grew by 28 per cent in the first half of 2016. FCA’s total minivan market share is up to 45 per cent in the U.S., (70 per cent in Canada), although in fairness, most other automakers pay no attention to minivans.
Yes, Ford now has the Transit Connect Wagon, but it’s a bit player. Ford tried to be a volume minivan player with the Windstar/Freestar, but failed spectacularly.
As for General Motors, that company killed any hope of being taken seriously here when it launched the “Dustbusters” of 1990-96 – the Pontiac Trans Sport, Oldsmobile Silhouette, and Chevrolet Lumina APV. Jalopnik asked this about the Trans Sport: “Was this minivan the greatest letdown in automotive history?” Yes.
These shockingly ugly minivans killed any hope that GM would find a formula to milk minivans for cash cows the way FCA has done for decades. The Dustbuster catastrophe made GM gun shy about replacing them, too.
And so the bean counters took over, forcing GM’s designers and engineers to create “global” minivans for 1997. Sharing costs with Opel and Vauxhall, GM’s European brands, looked good on a spreadsheet, but utterly compromised the designs – not to mention any hope of success.
Europeans drive on narrow city streets, so the 1997 versions of the Trans Sport, Silhouette and Lumina APV (re-named the Venture) appeared to have been squished in a vice. This disastrous product decision was made worse by GM’s decision to make an SUV out of these slab-sided minivans. Voila – the Pontiac Aztek.
Still, the import brands keep at it to this day. Kia recently re-did its Sedona to some success. Nice van, one that drives well and is beautifully appointed.
Toyota has the safe and reliable Sienna, the only minivan offered with all-wheel drive. The Odyssey has also soldiered on, though Honda’s obvious lack of interest is making it an orphan in Honda’s lineup. Too bad. The Odyssey once was considered the gold standard of minivans.
At FCA, however, the minivan is a core model and a source of ready cash. Minivans may not generate a great deal of respect among critics and commentators, but they’re important at FCA, and they matter to tens of thousands of buyers.
Consider this point made by a Seeking Alpha blogger Anton Wahlman. FCA’s minivan sales are nearly five times larger than Telsa’s total global sales. FCA’s market capitalization – what the stock market says the company is worth — is about $7.2 billion (US), versus about $31.3 billion (US) for Tesla.
If FCA got the same free pass from consumers, and enjoyed the same gee-whiz, new-new-thing valuation among investors that Tesla enjoys, “FCA’s U.S. minivan business alone should be worth $160 billion.” This side-show thinking is worth a laugh, but it’s not terribly useful if you’re a car buyer.
Here’s what is. FCA is just now in the early stages of launching its latest “luxury” minivan. The made-in-Canada 2017 Chrysler Pacifica starts at $43,995, which seems astounding. Who would pay $44,000 for a minivan? Apparently more than 10,000 people in North America, to date.
For me, the only minivan I’d buy would be the cheapest Dodge Grand Caravan available. Chrysler is advertising one for $23,495, which translates into a $348 monthly lease payment or 96 months of $133 bi-weekly payments at 1.99 per cent financing.
Bargain hard and you can get that price down to $20,000-ish. More than 60,000 Canadians will learn this for themselves before 2016 is done. They’ll buy an FCA minivan, proving the experts wrong — and making FCA’s rivals look foolish for failing to find a winning minivan formula.