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Mass Market Demand for SUVs
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Posted by cloudship [Email] (more from cloudship) on Sun, 12 Jul 2009 19:29:49 Share Post by Email
In Reply to: Recommend book, FauxRealism, Sun, 12 Jul 2009 09:38:07
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It bothers me when people try and fit history to their own causes, and the hatred SUVs receive, deserved or not, is really prone to this. While there is a lot to hate about the SUV, so much anger is directed their way that a lot of facts get distorted along the way simply to make the big 3 look bad.

The true SUV started with Jeep, and the Jeep Wagoneer, which was the first utility vehicle to go with car-level accommodations. Everything else before that (and even after, until the Range Rover) was still very much a truck with an enclosed back. It was the early 80s when Jeep announced that they were going to offer a more modern sports utility model. This in turn caused GM, Ford, and Mitsubishi to come out with their own competitive versions, and this was the start of the craze. 4 door versions of the GM and Ford did not come about until almost the 90s, so their sales, though decent, were nothing compared to where they would be in the 90s.

Once there were several 4 door models to choose from people started to really go nuts over SUVs. Jeep came out with a slightly larger Grand Cherokee, which only added to sales. And while the Minivan was the darling of the 80s, people were starting to shy away from the "familly" image of the minivan, and the SUV seemed like a great alternative. Seeing sales climb, automotive companies rushed to offer more SUV products, trying to carve out more and more of a market.

By the 2000's, most wagons were sold as SUVs. Combined with a growing demand for large and luxurious cars, luxury SUVs became popular. Just like the minivans before them, though, the popularity of the SUV also caused a backlash. While some of the smaller SUV models indeed got mileage very comparable with cars of the same amount of room, opponents focused on the large SUVs, which in many cases were actually trucks with car-like interiors. Soon SUVs were seen as gas hogs and irresponsible.

With the spike in gasoline prices there was a big turn away from the large SUVs. Again, opponents focused on this crying the death of the SUV. In fact smaller SUVs are still quite popular, and small truck sales ave been much steadier than some car sales.

Now, tying this back to the whole point of the thread in the first place, the explosion in SUVs really came about as a result of capitalizing on current trneds, not future trends. The Jeep was a new idea - it opened up a new market. GM and Ford copied that. They saw great success - for a while. But it couldn't last. instead of trying to find a new direction, they are trying to further and further refine their focus. But so many offerings of what is now a tired idea is hurting the market, and they simply cannot sell enough vehicles to cover their costs.

Lutz is great about cashing in on current cutting edge trends. Which works for a short period of time, but only just. And he can't keep it going. Chrysler cashed in on the trend of retro cars. Only it got old fast, and no one wants them anymore. Success for GM isn't going to come in on current trends - the GM Volt sounds great today because it is cutting edge, but by the time it comes to market it will be old hat. The Prius effect - now that everyone makes a hybrid no one needs a hybrid to look different. GM needs to focus on looking one step ahead - bringing out what people are going ot want in a couple years time, not today.



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