• Back    • Refer To Friend   • Print

On a crisp day in November, six consumers selected for test drives spent several hours at a raceway near Los Angeles driving three sedans: the redesigned Chevrolet Malibu, the new Honda Accord and the Toyota Camry. At the end of the day, no clear winner emerged in the contest arranged by auto research firm Edmunds.com. Two of the vehicles tied for first place. But there was a definite loser -- the Camry, which wasn't anyone's top choice.

"The Camry got the job done, but it was kind of boring," said Scott Barr, a high school science teacher and self-styled car enthusiast who took part in the exercise.

The Toyota Camry, now in its sixth generation, doesn't turn heads or thrill drivers with its road handling. It's no longer the undisputed leader in quality, either. Yet Toyota's rivals are struggling mightily to dislodge the perennial best-seller.

For the past six years, the Camry has been the top-selling car in America, and it retains its No. 1 ranking in the huge midsize sedan segment even though its rivals have rolled out substantially improved contenders -- not just the Malibu and Accord, but also Nissan Motor Co.'s redesigned Altima, Ford Motor Co.'s Fusion, and the current Hyundai Sonata.

These new models have drawn high praise. Last month, Consumer Reports magazine named the Altima the top-ranked midsize sedan, followed by the Accord and then the Camry. The Malibu was voted Car of the Year at the North American International Auto Show last month.

But auto experts and forecasters expect the Camry to remain at the top of the class. They cite a formidable combination of advantages: the Toyota brand's strength, which has produced legions of repeat Camry buyers, the car's high resale value, and its longstanding reputation for reliability.

"When you're strong, the tendency is to stay strong because people know you're tried and true. That's absolutely the case with the Camry," said Jack Nerad, editorial director at Kelley Blue Book, which tracks used car values.

Marketing ploys by Chevrolet and other brands pitting their new cars against the Camry unwittingly reinforce its position as the leader, he said. "When they mention it in their advertising or marketing, it's an accolade for the Camry."

But the Camry also has vulnerabilities, which its rivals hope to exploit. Checking out the rivals

Its reputation for quality has taken a few dents recently, along with Toyota's overall reputation. Last year, Consumer Reports removed the Camry fitted with a V-6 engine from its list of recommended cars following a surge of complaints about transmission trouble.

The Camry still has a strong following, but "there's more cross-shopping between the Camry and other vehicles," said Mark McCready, vice president at online retailer CarsDirect.com.

Introduced to the U.S. market in 1983, the Camry is often perceived as an older person's car by new buyers.

"No one stays on top forever," McCready said. "The (Chevrolet) Impala was the best-selling car at one point, and the (Ford) Taurus."

Toyota is watching sales trends closely to ensure the Camry remains competitive.

"The segment is the largest and most important in the industry," said Bob Carter, general manager of the Toyota division at Toyota Motor Sales USA.

Last year, sales of midsize cars totaled 3.1 million, he said. "We're fully committed to that segment."

In redesigning the current-generation Camry launched in 2006, Toyota managers refrained from making radical changes to the car they themselves describe as "vanilla-flavored."

But they made the sporty Camry SE version sportier, and they added a hybrid model to sustain demand for the car amid rising competition.

Judging by key data -- sales, incentive levels, and resale values -- the Camry is holding its own.

Last year, its sales growth outpaced the midsize car segment. In January, the Camry held a commanding sales lead over its rivals although Toyota offered lower incentives than any major automaker aside from Honda Motor Co., according to Edmunds estimates.

"It's our No. 1 selling car," said Jim Tuohy, general manager at Auto Plaza in Grand Blanc. "There's nice competition out there, but I still think we have a competitive advantage. We've got reliability, we've got dependability, we've got resale value." Fighting back

In comparison with the domestic brands, Toyota's reputation for reliability remains strong despite the recent knocks. One of the test drivers picked by Edmunds, retired pilot Philip Jensen of Eagle River, Wis., picked the Accord as his first choice and was tempted to rank the Malibu second, ahead of the Camry.

But he hesitated. "The quality is unproven," he said.

In the end, he ranked the Malibu third, although he was impressed with it. "If that car can prove as durable and reliable as the Accord and Camry, GM is on their way back."

As its rivals raise their game, Toyota seems poised to respond if the competition gets tough for the Camry. Unlike Honda, which relies minimally on incentives, Toyota plays the game.

"I think Toyota will incentivize the product a little bit more," said Rosario Criscuolo, a dealer with Toyota and Lexus stores in Michigan.

He also expects Toyota to do more than minor style tweaks to the car when it comes up for a midcycle face-lift in a year or two.

Toyota officials acknowledge the car is a bit bland-looking but say consumers appreciate the looks of the latest one.

"On this current generation, styling and overall packaging has become a more important purchase reason," Carter said.

"Styling isn't in the top three reasons but it's in the top five," he said, "and that's a change from previous generations."