Detroit Report: Ford Predicts Explosive CUV Growth

Will the CUV Change the Way We Drive?

The SUV is dead. Long live the SUV. Sales of traditional, truck-based sport utility vehicles have declined by double digits - 13.5 percent overall, dropping by 400,000 units for 2005. The numbers are worse for large SUVs as sales of Ford Expeditions, Chevy Tahoes and Suburbans, GMC Yukons, Toyota Sequoias, Nissan Armadas and Dodge Durangos have plunged an average of 18 percent, dropping from 1 million units in 2004 to about 800,000 today.

Although some automotive journalists and industry analysts are writing epitaphs for the sport utility vehicle based on the declining sales of vehicles such as the Ford Explorer, Ford Motor Co.s U.S. sales analyst provided a different view when

Sales of traditional, truck-based sport utility vehicles have declined by double digits - 13.5 percent overall, dropping by 400,000 units for 2005. (Photo: Trevor Hofmann, American Auto Press)

he spoke to the Automotive Press Association at the Detroit Athletic Club on Dec. 8.

Although sales of truck-based SUVs are down from their peak of nearly 3 million units in 2000, "the total SUV market keeps growing," said Fords George Pipas.

The growth of SUV sales is coming from so-called "crossovers" or CUVs, which are car-based vehicles. In fact,

Although sales of truck-based SUVs are down from their peak of nearly 3 million units in 2000, "the total SUV market keeps growing," said Fords George Pipas. (Photo: Joseph Cabadas, American Auto Press)

Pipas predicted that crossover sales would surpass SUV sales in 2006, nearly three or four years earlier than previous projections.

Currently, about 2.45 million traditional SUVs have been sold through 2005 versus sales of 2.24 million CUVs, and the sales figures for those segments will flip next year, Pipas forecasted.
Crossovers "are the competition to traditional SUVs... but CUVs will take the last barriers to entry away from the sport

Car-based CUVs, such as the Ford Freestyle or the Toyota RAV4, have different attributes that appeal to many more people. (Photo: Ford Motor Company)

utility market," Pipas said. "In other words, some people dont want to buy an Explorer or Expedition or a competitors product because its too big, too hard to park, not enough fuel economy or maybe because its got too much (height or width) or because its too bouncy like a truck."

But the car-based CUVs, such as the Ford Freestyle or the Toyota RAV4, have different attributes that appeal to many more people.

"They are generally more fuel efficient, more comfortable ride and handling, theyre not as high off the ground," Pipas said. "So, the SUV segment in general is going to keep

Since 2000 when there were only 14 crossovers on the market, there are now 41 different crossover models offered by automakers in North America, and that number is expected to reach nearly 50 models next year. (Photo: Mazda U.S.A.)

growing."

There are several reasons for the decline of traditional SUVs and the rise of crossovers, which Pipas added will be considered "the vehicle of this decade." Vehicle sales are being influenced by the availability of a wide variety of CUV models, customer demographics, and fuel prices that have risen and have remained at more than $2 USD per gallon for a long time.

On the sales side, Pipas pointed out that crossovers were still just a niche segment of the SUV market in 2000, when only 14 models were available and total sales were 541,000 units. This segment only started in 1996 with the introduction of the Toyota RAV4

The best selling crossover in the U.S. is the Ford Escape at 153,000 units, now available with a gasoline-electric hybrid drivetrain. (Photo: Ford Motor Company)

and was followed by vehicles such as the Honda CR-V and the Ford Escape, while many had sheet metal designs that made them look more like traditional SUVs.

Since then, there are now 41 different crossover models offered by automakers in North America, and that number is expected to reach nearly 50 models next year.

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