26 Votes

Boost it!

First The The SUV, Now Has The Collapse Of The Crossover Market Already Begun?

Agent009 submitted on 7/15/2008 Official Bell & Ross Timestamp: 10:14:16 AM

34 user comments | Category: Misc News | Source: | SOURCE: www.msnbc.msn.com

When Ford Motor Co.

came out with its new Edge crossover in 2006, the company hoped the truck-like vehicle built on a car frame would attract longtime Ford buyers trading in their inefficient sport utility vehicles.

For a while, it worked well. But last month, sales of the Edge and nearly all crossover vehicles dropped dramatically, causing another worry for automakers struggling with the dramatic shift by U.S. auto buyers from trucks to cars.

Automakers and some industry analysts say it's a temporary lull due to a combination of economic worries, sliding SUV values that prevent people from trading them in, and the lingering shock of $4 per gallon gasoline

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First The The SUV, Now Has The Collapse Of The Crossover Market Already Begun?

About the Author

Agent009

"If everything seems under control, you're just not going fast enough."

— Agent009 (View Profile)


User Comments

Shredmo

Most of the people that purchased large SUVs really only needed minivans. I am not surprised with the lagging sales of crossovers, I am surprised that minivan sales haven't increased. Where are the wagons that brought us out of the late 70's?

— Shredmo (View Profile)

Posted on 7/15/2008 10:35:32 AM | reply to this comment | Votes: 5   

w209w114

The wagons are coming!!!!!

— w209w114 (View Profile)

Posted on 7/15/2008 10:53:05 AM | | Votes: 6   

M35MT

You're right, however, I'd say more than HALF of all SUV buyers could get by with a family sedan, i.e. Honda Accord.

— M35MT (View Profile)

Posted on 7/15/2008 4:30:02 PM | | Votes: 5   

Shredmo

M35,
That is REALLY my point, but you know on the internets, you have to humor people, or they will twist your words on you. Most buyers of these vehicles don't need the inferred benefits offered by SUVs/CUVs.

— Shredmo (View Profile)

Posted on 7/15/2008 4:55:02 PM | | Votes: 3   

DogLb

WE ARE TURNING INTO EUROPE!!! The small(er) calls are coming! Honda Fits will be everywhere.

All kidding aside, my '01 330 BMW got on average 21-25 mpg. My 06 M35 gets maybe 17-19 on average. I may have to turn myself European again

— DogLb (View Profile)

Posted on 7/15/2008 9:12:25 PM | | Votes: 2   

xlr8

shaggin wagons ftw lol.

— xlr8 (View Profile)

Posted on 7/15/2008 10:53:42 AM | reply to this comment | Votes: 5   

BmwVoyager

lol rofl

— BmwVoyager (View Profile)

Posted on 7/15/2008 11:09:42 AM | | Votes: 2   

EL34

There is still a market for all these vehicles.

— EL34 (View Profile)

Posted on 7/15/2008 11:14:37 AM | reply to this comment | Votes: 0   

Agent009

The avg unemployment rate in the US since 1948 has averaged 5.6%

The current rate is holding at 5.5%

So while it is not a banner year is is also not a terrible year either.

— Agent009 (View Profile)

Posted on 7/15/2008 12:14:36 PM | | Votes: 4   

tkindred

"The avg unemployment rate in the US since 1948 has averaged 5.6%

The current rate is holding at 5.5%

So while it is not a banner year is is also not a terrible year either."

Hmmm, but you forget some key elements that have great significance like the value of the dollar and the increase costs of goods. That is what is killing people.

— tkindred (View Profile)

Posted on 7/15/2008 3:37:39 PM | | Votes: 4   

DogLb

I don't necessarily think the crossover is dying...it really just started. People are just holding on to their cars a little bit longer now with uncertain times ahead. ALSO, PEOPLE ARE GETTING KILLED ON RESALE/TRADEIN VALUE! I talk to people inj wholesale markets and 1-2 year old large trucks and SUVs are barely geting half of their original price.

The crossover (like the entire market) is in a bad cycle. Simple economics will tell us that what goes around comes around.

If I'm not mistaken, during the previous gas price of the 1970s, a similar thing happened. Sales were down and the market started introducing smaller cars and lower displacement engines and eventually corrected itself.

We still need people movers, and the "cross-over" isn't going away. It's just a matter of time!

— DogLb (View Profile)

Posted on 7/16/2008 8:29:40 PM | | Votes: 1   

answer

When you market the crossovers as light SUVs, the public remembers the "SUV" part when gas prices get crazy, and stays away.

— answer (View Profile)

Posted on 7/15/2008 11:43:04 AM | reply to this comment | Votes: 4   

Maverick2020

I think it's too soon to be writing the obituaries for CUVs. We're in a period of tremendous flux--there is the inevitable shakeout of brands, vehicle segments, etc that is occurring right now.

The main problem is that the CUVs are in many cases just as gas thirsty as the SUVs they purport to replace. Especially in the case of the GM Lambdas--they are not much better than the Trailblazer and Envoy.

— Maverick2020 (View Profile)

Posted on 7/15/2008 2:02:42 PM | reply to this comment | Votes: 1   

Whelan

This is good news for me, I am going to be trading in my 2005 Toyota Matrix XR AWD soon. Should get good dollars for it since its a 4cyl. hatchback with AWD that gets 28mpg avg. and is not a hybrid with only a 12 gallon tank. WooHoo!

I am goin in the other direction though, not downsizing. Moving into a pre-owned Infiniti G35 Coupe with the 6MT.

— Whelan (View Profile)

Posted on 7/15/2008 2:57:10 PM | reply to this comment | Votes: 4   

SteveL

The Trailblazer and Envoy got 16 city, 18 Hwy at best. The GMC Acadia, Saturn Outlook and Buick Enclave get 18 city 24 Hwy. Thats a lot better and way better than any big SUV and about the same as many cars with a V6 even Toyota's and Hondas with V6's.

— SteveL (View Profile)

Posted on 7/15/2008 3:11:04 PM | reply to this comment | Votes: 1   

Shredmo

Not bad, but that MPG is for the FWD version. Who needs a FWD "CUV/SUV?" It is a non-ergonomically designed mini-van.

And how can you say "At best". I trust you used the same source to compare the Trailblazer/Envoy's MPG as you did for the Acadia/Outlook/Enclave. Sounds suspect to me.

— Shredmo (View Profile)

Posted on 7/15/2008 3:28:36 PM | | Votes: 2   

M35MT

Who needs one?

People in the south that never see snow...but...I guess they still dont need it...but...they certainly DONT need AWD.

— M35MT (View Profile)

Posted on 7/15/2008 4:32:51 PM | | Votes: 2   

Shredmo

A full size wagon would get better mileage than an "off-road looking" jacked up station wagon would. I understand that the masses have to be "different", so an ordinary, practical wagon or minivan will not be created. Unfortunately for most, it is about image over function.

— Shredmo (View Profile)

Posted on 7/15/2008 4:37:43 PM | | Votes: 2   

Maverick2020

Not true.

According to fueleconomy.gov, the 6-cyl Envoy/Trailblazer 4WD gets 16 MPG combined (14 city/20 hwy).

The AWD Acadia gets 18 MPG combined (15 city/22 hwy).

— Maverick2020 (View Profile)

Posted on 7/15/2008 4:42:05 PM | | Votes: 4   

markanthony0419

crossovers are glorified station wagons. they are marketed as crossovers for the sole purpose to say I have a crossover not a station wagon and they are ugly. The infiniti fx last years anyway looks just like an amc hornet around 1975. look at the pictures just add big wheels and add 30 years of design and you will see it.http://images.google.com/imgres?imgurl=http://www.stationwagon.com/gallery/pictures/1976_AMC_Hornet_Sportabout_2.jpg&imgrefurl=http://www.stationwagon.com/gallery/1976_AMC_Hornet_Sportabout.html&h=230&w=447&sz=31&hl=en&start=15&um=1&tbnid=6uVlTSfu8WxYKM:&tbnh=65&tbnw=127&prev=/images%3Fq%3Damc%2Bhornet%2Bwagon%26um%3D1%26hl%3Den%26rls%3Dcom.microsoft:*%26sa%3DN

— markanthony0419 (View Profile)

Posted on 7/15/2008 3:51:59 PM | reply to this comment | Votes: 4   

markanthony0419

http://www.stationwagon.com/gallery/pictures/1976_AMC_Hornet_Sportabout_2.jpg

— markanthony0419 (View Profile)

Posted on 7/15/2008 3:55:56 PM | reply to this comment | Votes: 1   

SteveL

I liked the Blazer and Envoy. Still do. My friends own a 2006 white Envoy and the best they have got is 17 on the hwy but they do not drive the speed limit. We own an Acadia with AWD and we have got 26 MPG on a long trip. I will have to say though that if we do not watch the way we drive it drops a lot from that 26 to 22 on the HWY and 14 in the city if we are zooming around. You cant have a heavy foot if you want to save gas with ours. Thats why my wife drives it more than me. Mini van? I will not argue to much about that but there is no way a mini van would pull our 20ft boat or handle nearly as well.

— SteveL (View Profile)

Posted on 7/15/2008 4:01:25 PM | reply to this comment | Votes: 0   

Shredmo

For the sake of this argument, I don't care what bad MPG your friends get. I don't care about the miraculous MPG you have acheived. I would drink a beer and talk with you about these #'s, but for the sake of comparing apples to apples, use the EPA.gov. Compare 2wd to 2wd and AWD to AWD or 4x4.

— Shredmo (View Profile)

Posted on 7/15/2008 4:32:57 PM | | Votes: 1   

JMB1013

The sales drop in the Edge can be easily be explained by previous Ford customers waking up and realizing that it is ugly. The Buick Enclave, on the other hand, has a waiting list in many locations. Personally, I think some companies have been too ambitious with their crossover designs (read: the make ugly crossovers)....but I would rather drive a wagon, so I'm not a credible spokesman for crossovers.

— JMB1013 (View Profile)

Posted on 7/15/2008 4:15:03 PM | reply to this comment | Votes: 2   

Agent001

It doesn't help that they only get 2 or 3 MPG more at most than a Tahoe or Explorer in real world mileage.

At that rate, why even bother switching?

001

— Agent001 (View Profile)

Posted on 7/15/2008 4:43:45 PM | reply to this comment | Votes: 6   

olscuul

no kidding. when using my explorer on a trip it is usually way over loaded. last trip was from central ct, through scanton pa, through gaithersberg md, down to salvo nc,(outer banks), and back. averaged 18.7 mpg with 4 people on board, 18 ft cargo box on the top and 2 bikes on the hitch. my bil met up with us driving an '06 mountaineer v8. he mentioned he got stuck in the snow driving an acadia, so he would never buy one. i drove mountaineer up the island for about 60 miles and the readout displyed over 21 mpg. i reset it when i started driving. i still need a wagon and vans suck in the snow.

— olscuul (View Profile)

Posted on 7/15/2008 8:47:06 PM | | Votes: 2   

Bmw8ter

I'm not a big fan of the crossover segment. You have 2 choices: fairly capable engine with bad fuel mileage; or extremely pathetic engine(jeep compass) with decent fuel mileage. You choose.

— Bmw8ter (View Profile)

Posted on 7/15/2008 8:47:30 PM | reply to this comment | Votes: 1   

olscuul

another thing, my explorer was in the body shop for 4 days after getting hit(minor). the loaner was a ford edge. at work, we named it the nuclear pumpkin.
nice drivetrain and seats, but i got 20 mpg. ok, but not enough to replace anything we already have.

— olscuul (View Profile)

Posted on 7/15/2008 8:52:17 PM | reply to this comment | Votes: 2   

Bored

At the risk of showing my naivete when it comes to how quickly a car company can add engine options (diesel, hybrid, etc.) to an existing vehicle mid-cycle, I've always wondered why this can't happen in 12-18 months. If I understand correctly, a new model or complete redesign usually takes 4 years at the minimum. Sourcing an engine and transmission to handle it should be nothing more modifying the engine/chassis mounts, gathering an applicable ECU, then getting the parts from another division until it can be done domestically or from a 3rd party until one could be designed and manufactured in house...or so I would think.

Now I'm not suggesting this as a cure-all (and especially not as some fanboy either) to the sudden decline in Crossover sales. I am suggesting this as a possible adaptation to the current economy. I would guess that outside of Toyota and Honda, a hybrid option (even the so-called "mild" hybrids), would not be available quick enough for other car companies. Diesel is an option because every company has at least one engine readily available in at least one part of the world. For instance, I believe Jeep still uses a CRD designed and manufactured by Daimler AG (Mercedes). Why can't other companies do the same to help move product?

— Bored (View Profile)

Posted on 7/16/2008 12:40:26 AM | reply to this comment | Votes: 0   

SteveL

Thats a good question Bored. I cant really anser that myself but I was just watching a show (I forget what channel) but it was about a company called Hybrid Technoligies and they can take almost any car and turn it into a hybrid. I just caught the last part of the show so I do not know how long it took or what it costs but I did catch some of the vehicles they where working on and I saw a H2, Ford Edge, BMW and a full size truck, looked like a Toyota? I did not catch how much better MPG the cars where getting. I am sure it does cost a lot but if a comapny can do this to many different types of vehicles why cant the car company's do it? I probaly dont want to here the answeres to these questions but I thought somebody here might want to know about this or reply to it.

— SteveL (View Profile)

Posted on 7/16/2008 1:19:51 PM | reply to this comment | Votes: 1   

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