Death of a segment: minivans

The Chrysler minivan was one of the most groundbreaking vehicles of the second half of the 20th century. Today, the category is a quarter of what it once was, and the automakers still present in North America — Stellantis, Toyota, Honda and Kia — are fighting for a dwindling market of buyers. They plan to exploit existing platforms to earn maximum profits.

The industry is facing the slow demise of a segment.

U.S. minivan sales totaled 306,000 in 2023, according to Wards Intelligence data. In comparison, there were 540,000 units in 2010, 1.3 million in 2000 and the same number in 1995.

Stellantis is reintroducing the Chrysler Voyager minivan, a lower-spec Pacifica, to the public for the 2025 model year after selling it only as a fleet vehicle in 2023. It was previously planned to hire him in 2025. The Chrysler Pacifica is the category leader, selling a total of 121,000 units in the United States in 2023

The change is a result of dealer complaints and Stellantis' need to streamline production at its Windsor, ON, Canada, factory, which exclusively produces minivans on a platform developed a decade ago that is not shared with any other Stellantis product. Under intense pressure from Wall Street, dealers and workers, Stellantis is delaying battery-electric vehicle production in Canada and needs to squeeze as much profitable production out of the factory as possible until its BEV plans gain traction.

“The 2025 Chrysler Voyager offers customers a well-equipped, value-conscious minivan and underscores our brand's commitment to providing choice in the segment that Stellantis created more than 40 years ago and continues to lead,” said Chris Feuell, CEO of Chrysler brand. The Voyager trim will put pressure on Kia, which imports its Carnival price leader from South Korea.

Toyota has made some improvements to its Sienna minivan for 2025. Despite significantly lower sales figures than Pacifica/Voyager, Toyota has a manufacturing, price and profit advantage due to its flexible manufacturing strategy.

The current Sienna platform was launched in 2021. This fourth-generation Sienna featured a completely redesigned architecture, switching to a pure hybrid powertrain on the TNGA-K (Toyota New Global Architecture-K) platform. The architecture is shared with several other models in the Toyota range: Highlander, Highlander Hybrid, Lexus TX and Toyota Grand Highlander. All are built in Princeton, Indiana, allowing Toyota to adjust the number of these models on production lines based on consumer demand, says Aaron Credo, executive program manager for the Toyota Sienna.

For 2025, Toyota is upgrading its kid hauler with an integrated vacuum and refrigerator in the top Platinum trim or bundled with the Sienna Limited. It also features the Toyota Advanced Rear Seat Reminder, standard on all trim levels, newly developed to ensure a child is never left behind in the van.

It works via a radar sensor hidden behind the headliner that looks for movement in the second and third rows of seats when the car is turned off and locked. When it senses movement, even the rise and fall of an infant's chest while breathing normally, the door lock beeps nine times. If a door is not opened within 90 seconds, the horn will sound until a door is opened.

Owners can also opt-in to receive push notifications, text messages and phone calls if notification is required. “We believe this technology will give us an advantage with customers and may even bring some into the category for the first time,” says Credo.

Despite these improvements and pricing strategies, the minivan category appears to be a niche segment that is on the rise and will rely on flexible manufacturing strategies like Toyota's. Honda's Odyssey, for example, is eight years old since its last overhaul and is manufactured at the Honda Manufacturing of Alabama (HMA) plant in Lincoln, Alabama, where the Honda Passport SUV, Honda Pilot SUV and Honda Ridgeline pickup are also produced the same platform.

Millennial families have largely rejected minivans in favor of CUVs and SUVs. Take Nora and David Long from Chatham, New Jersey. They have three active sons ages 8 to 11 – top minivan customers in 1990. After the third boy arrived, the millennial couple purchased a full-size GMC SUV. “No minivans. Absolutely not,” says Nora Long.

Families like the Longs are increasingly rejecting minivans for several reasons. At the top of the list is the perception of minivans as less “cool” compared to CUVs and SUVs, which are seen as more rugged, versatile and visually appealing. Additionally, SUVs offer a combination of features that are a priority for many families, such as increased ground clearance, off-road capability and a more modern design.

This attitude pushed Ford, General Motors and Nissan out of this category years ago.

Baby boomers with grandchildren

But while the Longs are typical of Millennials, the baby boomers who drove the growth of minivans in the '80s and '90s are still a lucrative audience, albeit in smaller quantities, as children are replaced by grandchildren and active lifestyles Retirement were replaced.

The exact percentage of minivan sales to empty nesters is not readily available. But Toyota says it typically accounts for about 30% of sales, and Chrysler and Toyota target that demographic. Empty nesters, Toyota's credo, are attracted to minivans because of their spaciousness, comfort and advanced features for long-distance travel. Chrysler and Toyota, in particular, have introduced new models with features tailored to older buyers, such as luxury features and hybrid options. Not to be neglected is the smaller and easier exit compared to SUVs.

About 20% of all minivan sales go to rental fleets, where they are convenient for traveling families or people moving into a new home. Combined with sales to older shoppers, this represents about half of today's sales going to childless households.

And as Millennials retire, they're unlikely to give up their disdain for minivans just because they're in the market for knee and hip replacements.