Crossover Mania: Why GM is Poised to Lead this Important New Segment

[ChevroletRevived]

Crossover Mania
''Why GM is Poised to Lead this Important New Segment''

A ChevroletRevived Commentary
www.gminsidenews.com
Tuesday, April 11, 2006




Hailed by experts everywhere as the 'next big thing', it looks like the Crossover will become the next fad. SUV's defined the 90's, now it looks like crossovers are going to define the 00's. The Automakers know this, and they all are looking to become the market leaders, as cornering and capturing an burgeoning new segment is an automaker's dream. Toyota introduced the Highlander, For 2007 Ford fielded the Edge and Lincoln MKX and now GM, with the new Outlook, Enclave and upcoming Acadia is taking it's hand at capturing the crossover market. In designing the over-budget Lambda's, it's apparent that GM's focus was upon the Outlook and Enclave, the most important of the Lambda crossovers. These vehicles are clearly defined in terms of purpose and mission. The Outlook is designed to lead the segment in the lower price categories.The Enclave, on the other hand, is attacking the luxury end of the segment, going head to head with competitors like the Lexus RX330 and Lincoln MKX. No doubt, the Outlook will be the volume seller of all the Lambda platform mates. The Outlook is one of the essential ingredients of Saturn's positioning as GM's import fighting brand. Saturn, which, just a few days ago, had the weakest lineup in GM's brand hierarchy, now has the one of the most modern and competitive due to the competentness of the Outlook and Aura. Once each model is introduced, GM will have the largest lineup of crossovers available, eclipsing Ford and Toyota. This lineup will include the Saturn Outlook, GMC Acadia, Buick Enclave and Cadillac SRX. Each platform mate will be well differentiated from one other. The stylistic difference between the Enclave and Outlook is apparent; the two look nothing alike. The stylistic difference carries over into the interiors as well: both are fresh and modern, yet they carry an impressive design distinction. I applaud GM for taking the time to do this; according to researchers, re badged vehicles don't fare well in the market place. GM is putting fresh and competitive powertrains in the new crossovers. In the Outlook, the smooth and refined 3.6l HF V6 mated to a new 6 speed show you that GM really was serious about making these crossovers not only contenders, but class leaders.

Conclusion

GM has long been criticized for being cumbersome and slow to react to market changes. It seems however, that GM was always there to ride the wave of a new trend. Take the popularity of SUV's for instance. Who was there to tap into that market? GM capitalized on this new trend, and enjoyed the high volumes and high profits generated by these vehicles. Their immense popularity and profit generating capability helped GM to stay on top. Although GM will be able to retain it's sales, and stay the leader in this area, the market is changing and shifting to crossover vehicles. GM realized this and developed the Lambda's, the most stunning lineup of vehicles yet to come out of GM. When GM takes something seriously, look what can happen. Once again, it looks like GM will be there to tap into this new market, and become the segment leader.

[MNdudeswitz]

But crossovers have been around for quite some time now...........in the form of the CRV and the Rav4.........heck even lexus! But hey, its better late than never! And GM has come to the game ready to play !!!!

P.S. Good write up...........and I love the Outlook!!!!!!!!

[CobaltSScrazy]

good write up chev rev. I hope saturn does end up doing it, my friend HATES the morroco brown in teh aura and the wood trim, so I'm waiting for the metallic trim version to come out, and the redline

[ChevyRules]

Good write up, but I disagree with one thing. I think the Acadia will be the better selling of the 3. Saturn and Buick have to shake off the reputations they have. GMC on the other hand has no such reputation that would harm the sales of the Acadia. GMC has the reputation of trucks and SUV's well due to them having nothing but trucks and SUV's. Saturn will have the Legacy of the L-series and Ion. People with experience with the Vue might help out its sales as the Vue was a great Saturn as I see ton of them in my area. As long as the Acadia is styled right, I see it being the better seller seeing the brand it is in isn't a damaged brand and is also full of great sellers. While the hard core fans of GMC might not like the Acadia based on the fact that it isn't a BOF design, I doubt it will impact sales all that too much.

[mbukukanyau]

Lets put it this way, Its not Mania until GM makes it mania, but, they need to turn their attention to Camry and accord..
AND , I think they should keep both the Rainier and Trailblazer

[ChevyRules]

Originally Posted by mbukukanyau

Lets put it this way, Its not Mania until GM makes it mania, but, they need to turn their attention to Camry and accord..
AND , I think they should keep both the Rainier and Trailblazer

I think the Rainer is definitely being killed. The Trailblazer will most likely live. What we don't know is will it be based on a new 360 platform with it of course being BOF, or will it be unibody based platform( I hope on a RWD crossover platform which GM currently lacks). Then that also leaves the fate of the Envoy. If the TB stays BOF, then the Envoy is guaranteed to stay in GMC's line up. If the TB goes to a new unibody platform, we might see the Envoy nameplate dropped or the unibody Envoy replaces the Acadia. The TB and Envoy have at least one more generation left as GM can't develop a brand new RWD crossover platform in just 2 years. It is the next generation after that that will be the decision maker. What will also help push GM to make the TB unibody will be Ford's decision to make the Explorer unibody based or keep it BOF. It will be like domino's. One company makes their BOF mid size SUV a crossover, the others will follow.

[USA1Fan]

I'd be less interested in a true unibody for the next TB / Envoy than a hybrid chassis, like that used by some other automakers now (Honda and Suzuki come to mind). Definitely keep them RWD / 4WD with good towing capacities, because that is one of their strong selling points. Vehicles like the Lambdas may carry as many people and have as much space, but the BOF type RWD SUVs tend to be better for towing needs. Also, make them more off-road friendly (at least an optional version- Z71). This would further differentiate them from the crossovers, and would make some models extremely attractive to that segment that bought the previous 2 door Blazer ZR2 models.

[wpbharry]

GM now will have the large end of the CUV market covered (possibly too large; time will tell), but it has nothing to go up against the 5-passenger Edge/MKX and it's smaller products (Equinox, Torrent and Vue) aren't exactly state-of-the-art.

It does have the Maxx, which really can now be called a CUV, but that's short-lived (going away in '09 or '10), per rumors.

I see major gaps. GM is still focusing on the big guns, hoping to reap in their associated profits. Fine, unless gas continues its rise.

[tama z71]

SRX doesnt count?

[darndot]

Let stop calling it a crossover. I would call it a TSW meaning a tall station wagnon.

[USA1Fan]

Nah. It's as much a crossoever as any other vehicle on the market that we refer to under that heading right now. Station wagons used to all be body on frame, like trucks.

[germeezy1]

the SRX is a crossover...thats styled like a tall station wagon....the SRX by far is one of the best luxury crossovers out but the styling hampers the sales.

[megeebee]

Did I read this correctly? The SRX is now on the Sigma platform. Is it's replacement going to be a Lamda? You refer to it as a "platform mate" to the Acadia, Outlook, etc.

[mbukukanyau]

Originally Posted by Chevy_Rules

I think the Rainer is definitely being killed. The Trailblazer will most likely live. What we don't know is will it be based on a new 360 platform with it of course being BOF, or will it be unibody based platform( I hope on a RWD crossover platform which GM currently lacks). Then that also leaves the fate of the Envoy. If the TB stays BOF, then the Envoy is guaranteed to stay in GMC's line up. If the TB goes to a new unibody platform, we might see the Envoy nameplate dropped or the unibody Envoy replaces the Acadia. The TB and Envoy have at least one more generation left as GM can't develop a brand new RWD crossover platform in just 2 years. It is the next generation after that that will be the decision maker. What will also help push GM to make the TB unibody will be Ford's decision to make the Explorer unibody based or keep it BOF. It will be like domino's. One company makes their BOF mid size SUV a crossover, the others will follow.

Thanks for a very detailed update. I think GM's concern should not be Ford Exproler but Toyota 4 runner, and this is on a global scale
Chevy is a Global brand, GM should make the TB to go after the pathfinder and 4 Runner, not exploler which is a North American phenomenon

[ChevyRules]

Originally Posted by mbukukanyau

Thanks for a very detailed update. I think GM's concern should not be Ford Exproler but Toyota 4 runner, and this is on a global scale
Chevy is a Global brand, GM should make the TB to go after the pathfinder and 4 Runner, not exploler which is a North American phenomenon

Yes, Chevy is a global brand, but I think the TB is NA only right? So unless Chevy has plans to export the TB, I think GM should concern with the Explorer.