Midsize SUVs run low on sales due to gas prices

[genjy]

Midsize SUVs run low on sales

Gas prices affect them more than full-size versions

11:11 AM CDT on Tuesday, June 13, 2006

By TERRY BOX / The Dallas Morning News


As fuel prices soar, big SUV sales sink – or so the story typically goes.

But the media may be focusing on the wrong segment, some industry officials say. Midsize truck-based SUVs are even more endangered.

Although $3-a-gallon gas has scared off some buyers of full-size sport utility vehicles and pickup trucks, it has deeply eroded the sales of the truck-based vehicles such as the Ford Explorer and Jeep Grand Cherokee that launched the SUV craze 15 years ago.

Sales of truck-based midsize SUVs have been hit even harder than those of full-size SUVs.

Full-size SUVs have more space, cargo capacity and cachet. And most buyers of full-size SUVs care more about interior space and cargo capacity than fuel consumption, so the midsize SUVs are not an option when gas prices shoot up, some analysts say.

"That [midsize] segment has fallen off significantly," said Paul Ballew, executive director of global marketing and industry analysis at General Motors Corp. "Our mids get worse mileage than our full-size SUVs, and you're seeing manufacturers shift accordingly. Its day in the sun has probably passed."



Sales of truck-based midsize SUVs have been hit even harder than those of full-size SUVs. Here are national sales numbers and percentage change through April:

CHEVROLET TRAILBLAZER
-13.9%
National sales through April: 56,183

DODGE DURANGO
-39.3%
National sales through April: 26,152

FORD EXPLORER
-29.9%
National sales through April: 60,488

GMC ENVOY
-23.1%
National sales through April: 23,599

JEEP GRAND CHEROKEE
-17.7%
National sales through April: 45,348


Full text:
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[Bravada]

What's suprising is that the Explorer, which is an apparently new model, is taking more beating than the veteran GMT360s. Either GM reps were faster at the Avis headquarters or GM has some really faithful customers. Either way, given the slew of new crossovers I don't find this suprising. I guess this segment might even get partially wiped out and substituted by crossovers in the long run.

[GM_Fanatic]

GM is smarter then we all give them credit for!

They stressed the importance of getting the redesigned best in class fullsize SUVs out. (While this market is not growing like it was in the late 90's, it is still extremely profitable and not as influenced by gas prices.)

They are delaying the redesign for their midsize SUVs. (This was a move of pure genius on GMs part. Bring on the Lambda crossovers and delay the release of midsize SUV's which are being hit hardest by gas prices.)

I think I will go revel in the sheer brilliance of the Generals product development strategy.

[kenman923]

Yes, the midsize SUVs are no better on fuel economy than their full size siblings. I think that midsize SUVs will be phased out in favor of the crossovers. I would think that the full size SUVs and pickups are here to stay because people who drive them like the utility they bring.

[T-Type]

Originally Posted by GM_Fanatic

They are delaying the redesign for their midsize SUVs. <- This was a move of pure genius on GMs part. Bring on the Lambda crossovers and delay the release of midsize SUV's which are being hit hardest by gas prices.

I was under the impression the GM midsizers are going away. Period. The crossovers were supposed to fill that gap.

[GM_Fanatic]

Originally Posted by T-Type

I was under the impression the GM midsizers are going away. Period. The crossovers were supposed to fill that gap.

Last I heard was a TB refresh for 2008...? Maybe not though. Personally I'm fine with that. It will cause an uproar among a few, but ultimately it would be for the better. GM doesn't need to sink anymore money into the GMT360 when they have Lambda coming out of the gates.

But then DOES Chevy need a Lambda to fill the Trailblazer's hole?....hmmmm. Well, as long as its not a rebadge of the Outlook, I'm fine with that too. But then the 'Nox doesn't need a third row. Gosh their lineup is cluttered!

[paul8488]

Wonder how the TB SS is doing. Any special model takes some development bucks, so I hope they can recoup them. I wonder what the total for the GMT360s is... must be nearing 90,000, with the Rainier and 9-7x added in. Not bad for a pretty tired vehicle.

I think you're right Bravada... large crossovers will likely take the place of these midsizers.

[cadillacpimpin]

i think the explorer is doing badly because it looks ugly now. there isnt really a design theme, too many circles in the lights... looks like a big traffic light.

[GMFreak8]

Originally Posted by Bravada

What's suprising is that the Explorer, which is an apparently new model, is taking more beating than the veteran GMT360s. Either GM reps were faster at the Avis headquarters or GM has some really faithful customers. Either way, given the slew of new crossovers I don't find this suprising. I guess this segment might even get partially wiped out and substituted by crossovers in the long run.

Just what I don't want to see happen. I really am hating this recent crossover craze. Watering down SUVs into nothing more than jacked up minivans. I want a true small or midsize body on frame SUV that can actually handle off roading. Sort of like the Blazer, which GM killed with no true replacement. I guess I'm in the minority though. The people who use SUVs for want they were originally designed for end up getting screwed so the people who should have bought minivans in the first place can buy SUVs.

[uujjj]

This is fantastic news! Hopefully the soccer moms have seen the light and these hideous monstrosities are on their way off our roads.

[rsbaker]

It's a shame they Gm doesn't have diesel option ready to go.

[04Colorado]

2 things I saw wrong in the article:

1) Sorry, there's no way that a Tahoe gets better mileage than an I6 TB.

2) The Grand Cherokee isn't truck based. Its unibody. The first crossover??

[paul8488]

Couldn't the TB and Envoy have a better shot at life if they were more closely related to the Colorado and Canyon? As much as I'm glad the full size trucks and SUVs don't look alike, if it's the only way to fund another generation of midsize SUVs, it's maybe not such a bad idea. Build them in a flexible plant that can adjust demand to meet truck / SUV demands as it ebbs and flows.

[SUPERBADD75]

Originally Posted by GMFreak8

Just what I don't want to see happen. I really am hating this recent crossover craze. Watering down SUVs into nothing more than jacked up minivans. I want a true small or midsize body on frame SUV that can actually handle off roading. Sort of like the Blazer, which GM killed with no true replacement. I guess I'm in the minority though. The people who use SUVs for want they were originally designed for end up getting screwed so the people who should have bought minivans in the first place can buy SUVs.

exactly! i don't want a stupid station wagon in truck drag, i want a real truck and if the TB goes away, what will i be left to buy when my current one wears out? the imports aren't abandoning the market. there has been no talk of the 4Runner or Pathfinder being axed, so why would GM even consider it when they handily outsell both of those? perhaps what they need to do, rather than just axe the '360s all together is drop all but the GMC and Chevy, give everyone else the Lambdas, and continue selling the body on frame SUVs. if GM ceases to offer real midsize SUVs i may have no choice but to buy elsewhere when i'm ready to replace my truck. sure, gas prices suck right now, and we'll never have $1 gasoline ever again, but i'm dealing with it. i don't want a crossover, i want a real truck, and if i have to spend more on gas then so be it. GM, don't drop the GMT-360s. you'll rue the day if you do.

[SUPERBADD75]

Originally Posted by 04Colorado

2 things I saw wrong in the article:

1) Sorry, there's no way that a Tahoe gets better mileage than an I6 TB.

2) The Grand Cherokee isn't truck based. Its unibody. The first crossover??

my I6 TB gets pretty bad mileage. i don't know what the new Tahoe gets, but i'm right around 16 in the city. it's totally possible that the Tahoe gets at least equal mileage. i like the size of my truck better though, and the price is pretty darn friendly too.