Americans Want Econoboxes? SUVs Back Over 50 Percent of Vehicle Sales

[CSpec]

Americans Want Econoboxes? SUVs Back Over 50 Percent of Vehicle Sales

National Review

For the first time in more than two years, SUV sales account for more than half of the U.S. auto market. This will come as no surprise to readers of this blog, as we have charted the growing rebound of light truck sales as the U.S. economy has (albeit slowly) rebounded and gas prices remain under $3 a gallon.

The trend comes even as Washington issued a new edict that vehicles average an absurd 62 mpg by 2025. The current absurd standard — 35 mpg by 2015 — has forced manufacturers to invest billions in new small-car development.

Today, manufacturers are in defiance of their own customers — their marketing departments churning out small-car ads touting their new green products. This puts automakers in a tough spot: Continue to make cars for the government, or listen to their customers.

For now, manufacturers are sticking with the government, telling the Detroit News that “with a slew of new cars coming out, such as the Chevrolet Cruze, the Ford Fiesta and a new Ford Focus early next year, car sales are likely to outpace truck sales in the coming months.”

Maybe. But it would contradict this year’s clear market trend in precisely the opposite direction.

Despite a record 29 models on the market (nearly double the number three years ago) — and loud predictions that hybrids are in demand — hybrid vehicle market share continued to decline in September from its high in the $4-a-gallon-gas spring of 2008.

August hybrid sales came in at just 2.3 percent — down from 2.8 percent a year ago and 3.2 percent in April, 2008. The huge increase in green offerings looks less like a way to meet market demand and more like a way for manufacturers to get credits towards federal mpg fleet mandates.

The Toyota Prius — the king of the green niche — continues to account for over 50 percent of hybrid sales.

[regfootball]

benefit- at least Ford and GM will have GOOD small cars in the showroom now. Cruze, Aveo, Focus, Fiesta.

A lot of domestic haters have formed their opinion on US brands because of not having good small cars HERE.

So that will help fix that.

Otherwise time and history have shown Amurchans love room and space.

At some point to satisfy America we need fuel economy + room and space.

It's just a natural pendulum. Big cars, small cars, the market cycles. The green bunch got mouthy and look at what's in office.

The pendulum will go back as long as gas prices don't kill. The govt saw what happened to the auto sector when gas got too expensive. If cars don't sell and people don't drive your governments do not collect as much tax revenue.

My own point of reference recent is taking a family trip with 4 in the cobalt this past weekend again. I had been back at the 'we can have one small car in the house' point but after another trip in the compact i am pretty much back to requiring space in the next car. Doesn't need to be a hulking Tahoe, but space is needed.

Edited October 5, 2010 by regfootball

[Drew Dowdell]

My only issue with this is the flawed premise that econoboxes and big SUVS are equals in terms of amenities and quality.

People don't want econoboxes because 95% of them are penalty boxes. Even the nicer econoboxes are nothing like the luxury available in the big SUVS.

My humble opinion is, until you can get lux comfort in a smaller package, people will continue to buy SUVS.

One of those luxuries is QUIET. My biggest complaint when I ride in any of the small cars, Civic, Impreza, 3, is the amount of wind and tire noise is so bad as to turn me off to the whole idea of owning something that size.

So, until smaller cars offer the amenities, ride, comfort, and quiet that the big SUVS can...this trend will continue.

[CSpec]

That's right. People are willing to pay more in gas to get the added size, comfort, utility, and better driving position of SUVs. It's classic government boondoggle to try and force preferences on people in this way.

[Drew Dowdell]

Do you simply ignore everything I say?

I just said that people drive SUVs because small cars don't currently offer the amenities people want in a vehicle.

It doesn't take a rocket scientist to figure out why people who can afford it buy an Escalade or DTS or STS over a Cobalt. It's because there isn't a Cobalt sized vehicle that offers the comfort and amenities that the big vehicles have.

[Camino LS6]

...or Americans just prefer larger cars.

[Drew Dowdell]

3-series.

[balthazar]

The question I always return to is- say small cars offer the same quiet, handling, ride, amenities & features that large cars offer.

What, then, beyond physical space, is the draw to large cars? Would achieving that shift be enough to 'justify' large cars continuing?

Anyone think the 'think tank' push is just that; to get small cars to be the equal in everything but size/displacement, nudging the populous into smaller & smaller (=more economic) cars ??

I -for one- will not go quietly in such a dark night...

To continue along this train of my thought... I also again return to an idea stated before, both by myself & Camino IIRC, that such a shift/ push would nudge the automakers back toward a time where 1 size car (maybe a slightly longer second) is all that's feasible.

Edited October 5, 2010 by balthazar

[Robert Hall]

My only issue with this is the flawed premise that econoboxes and big SUVS are equals in terms of amenities and quality.

People don't want econoboxes because 95% of them are penalty boxes. Even the nicer econoboxes are nothing like the luxury available in the big SUVS.

My humble opinion is, until you can get lux comfort in a smaller package, people will continue to buy SUVS.

One of those luxuries is QUIET. My biggest complaint when I ride in any of the small cars, Civic, Impreza, 3, is the amount of wind and tire noise is so bad as to turn me off to the whole idea of owning something that size.

So, until smaller cars offer the amenities, ride, comfort, and quiet that the big SUVS can...this trend will continue.

+1

The noise, cheap plastics, and general feeling of despair of the gray plastic interiors turn me off of most small cars...the only small car I've driven in recent years that I thought I could live with (had a nice beige and black two tone interior, lots of amenities) was a loaded Jetta rental I drove in '08..

[CSpec]

Do you simply ignore everything I say?

I just said that people drive SUVs because small cars don't currently offer the amenities people want in a vehicle.

It doesn't take a rocket scientist to figure out why people who can afford it buy an Escalade or DTS or STS over a Cobalt. It's because there isn't a Cobalt sized vehicle that offers the comfort and amenities that the big vehicles have.

How many expensive Euro compacts have flopped in the States? Size in and of itself is definitely a big selling point for Americans.

[regfootball]

My only issue with this is the flawed premise that econoboxes and big SUVS are equals in terms of amenities and quality.

People don't want econoboxes because 95% of them are penalty boxes. Even the nicer econoboxes are nothing like the luxury available in the big SUVS.

My humble opinion is, until you can get lux comfort in a smaller package, people will continue to buy SUVS.

One of those luxuries is QUIET. My biggest complaint when I ride in any of the small cars, Civic, Impreza, 3, is the amount of wind and tire noise is so bad as to turn me off to the whole idea of owning something that size.

So, until smaller cars offer the amenities, ride, comfort, and quiet that the big SUVS can...this trend will continue.

i think adding lots of sound deadener, quieter and larger tires, stiffer chassis, amenities, all those things that would refine small cars, also add the weight and cost that make a tough sell. there is a point of diminishing return on small vehicles in terms of the price you can charge, and the fuel economy that is expected out of them.

mini sells well, but its like the prius, its the king of a niche, and its just fashionistas who are trying a cheap entry into the BMW brand. You'd probably be better off studying the sales charts of the A1's and Volvo C30's of the world to see exactly how much the public likes 'premium small cars'. You've got more buyers who want a bigger crossover or SUV for the same price in comparison to those feature laden small vehicles.

Edited October 5, 2010 by regfootball

[SoCalCTS]

I would never drive an "econobox" or a "penalty box". I cant stand SUV's. I need a premium small car. I hope the Cadillac ATS, baby Buick, etc will come to market soon. Ford is taking the first steps in bringing these cars to market, the Cruze is almost there but lacks the power and technology of larger cars.

[regfootball]

+1

The noise, cheap plastics, and general feeling of despair of the gray plastic interiors turn me off of most small cars...the only small car I've driven in recent years that I thought I could live with (had a nice beige and black two tone interior, lots of amenities) was a loaded Jetta rental I drove in '08..

I parked next to a 2001 ish Jetta at TARGET yesterday. Those cars had NO room. Earlier in the day I had sat in a new 011 Jetta that had SPACE.

VW upsized the Jetta about 2 classes in the US in less than a decade.

That pretty much says it all right there in terms of how companies like VW see our market and what people desire.

VW would never currently expect to get the volume increase they are looking for with the size Jetta it had back in 01/02 ish.....they even though the 08 was too small....

[Drew Dowdell]

i think adding lots of sound deadener, quieter and larger tires, stiffer chassis, amenities, all those things that would refine small cars, also add the weight and cost that make a tough sell. there is a point of diminishing return on small vehicles in terms of the price you can charge, and the fuel economy that is expected out of them.

mini sells well, but its like the prius, its the king of a niche, and its just fashionistas who are trying a cheap entry into the BMW brand. You'd probably be better off studying the sales charts of the A1's and Volvo C30's of the world to see exactly how much the public likes 'premium small cars'. You've got more buyers who want a bigger crossover or SUV for the same price in comparison to those feature laden small vehicles.

The Mini is awful with noise, ride comfort, and ergonomics! Even even gets lame fuel economy for how small it is.

If someone made a previous generation 3-series with more of an eye on fuel economy, that is what I would use as a model for "small, but premium and efficient"

[SAmadei]

I just said that people drive SUVs because small cars don't currently offer the amenities people want in a vehicle.

And the number one amenity seems to be space... volume... size. I imagine huge engine comes second.

As soon as they build an econobox with a huge interior and monster engine, I'll be first in line. ;-)

[Drew Dowdell]

And the number one amenity seems to be space... volume... size. I imagine huge engine comes second.

As soon as they build an econobox with a huge interior and monster engine, I'll be first in line. ;-)

Not especially. Look at the best selling SUVs and CUVs (the only way you get to 50% is by including CUVs)

CR-V, RAV4, Equinox, Escape, Forester, and things like the HHR and PT Cruiser are technically included in the CUV count.

The 4-cylinders are at better than a 75% take rate on models that have a V6 available.

What American's really want are tall AWD station wagons..... they just don't want to call them that.

[smk4565]

Not especially. Look at the best selling SUVs and CUVs (the only way you get to 50% is by including CUVs)

CR-V, RAV4, Equinox, Escape, Forester, and things like the HHR and PT Cruiser are technically included in the CUV count.

The 4-cylinders are at better than a 75% take rate on models that have a V6 available.

What American's really want are tall AWD station wagons..... they just don't want to call them that.

True, people want their tall AWD wagons because they think they are safer than a car, and it gives them more status than driving a sedan.

This buying preference isn't helped any by the fact that many small-midsize cars, especially domestic aren't that good. And if the Kia Soul, Nissan Juke, and Scion-type vehicles are classified as SUVs, over 50% is no surprise. Many younger people like the versatility of them or that they are different from the sedans their parents drive.

If better sedan options arise however, cars can take some of that share back.

[smk4565]

If the government's wish is to cut down on SUV sales, CAFE isn't the answer, just tax gas more. Europe has $7 a gallon gas, they aren't driving Tahoes and Grand Cherokees over there, it is all wagons and hatchbacks with diesels.

[A Horse With No Name]

How many expensive Euro compacts have flopped in the States? Size in and of itself is definitely a big selling point for Americans.

Depends on the Americans....the new GTI/Golf is up in sales, and the GTI is a verysuccessful niche model vehicle.

People will want idfferent things in cars...as an advocate of the free market, what is wrong with a free market that gives us the GTI, Cooper S, CTS, 3 series, Fusion, Escalade, Focus, Charger, and a bunch of other wonderful product.

Why the heck are people so threatened by small cars?

And why would we want to force familes to drive vehicles they won't fit into. Just came back from an 8th grade football game with my son daniel...lots of familes at the game driving MINI vans, Pick em ups and SUV's.

IMHO let the market do it's work, provide alternative fuels, and let us have great product for as long as we want it.

[67impss]

"What American's really want are tall AWD station wagons..... they just don't want to call them that."

Nah I want my wagon longer lower wider & I like to call em station wagons.OH and Americans don't like hatchbacks either

[A Horse With No Name]

If the government's wish is to cut down on SUV sales, CAFE isn't the answer, just tax gas more. Europe has $7 a gallon gas, they aren't driving Tahoes and Grand Cherokees over there, it is all wagons and hatchbacks with diesels.

I don't know that a ton of gasolene tax will do good...although I would like to see a slightly higher tax used to repair rotted bridges, tunnels, and so forth....

And Americans have very different needs than Europeans. Like I said, I just came back from a football game...we live just outside of Columbus, but down here in Pickaway County it's farm country...people need and want trucks, SUV's, and MINIvans. Change the fuel, not what we drive.

[Drew Dowdell]

"What American's really want are tall AWD station wagons..... they just don't want to call them that."

Nah I want my wagon longer lower wider & I like to call em station wagons.OH and Americans don't like hatchbacks either

You and I aren't Molly McMansion

[A Horse With No Name]

Actually, since most SUV's and MINIvans have a rear hatch...we just dirve Burger King ish super sized hatch backs....hatch backs that match American butt sizes perhaps?

[regfootball]

The Mini is awful with noise, ride comfort, and ergonomics! Even even gets lame fuel economy for how small it is.

If someone made a previous generation 3-series with more of an eye on fuel economy, that is what I would use as a model for "small, but premium and efficient"

the mini is a fashion accessory.

something about the size of the 3, sure.

but i wouldn't saddle it with any rwd need.

in THEORY a car like the cruze should be big enough, but i can tell you the interior is nice, its not PREMIUM, and it still lacks some space. i doubt it has all the road noise kept out that you'd want to call it premium. and then if you make those parts of the car premium, then you gotta pump up the motor and the suspension, the brakes.......

pretty soon you have a nice heavy expensive small car that costs too much, weighs too much, and doesn't have enough room. there's a deal breaker in there somewhere of all those good things that just makes it tough to do on a small car that can be sold for volume and profit.

Edited October 6, 2010 by regfootball

[ocnblu]

A larger vehicle imparts a feeling of safety. It also negates much of the need for a second vehicle for vacations and trips to the Home Depot. If a family is to have one vehicle, it needs to serve the family's needs in all foreseeable situations. My cousin has four young sons under 12 years old who are into sports. When the real estate market crashed (she's a realtor), she traded her Excursion on an Outlook to save on fuel and payments. Well, that didn't last long. She now has a new Suburban in her driveway.

[pow]

Today, manufacturers are in defiance of their own customers — their marketing departments churning out small-car ads touting their new green products. This puts automakers in a tough spot: Continue to make cars for the government, or listen to their customers.

As usual, another poorly researched article by the National Review. Government policy has never been targeted against large vehicles; in fact, thanks to the lobbying efforts of the AAM, there is no penalty for making larger vehicles as manufacturers each have different target MPGs based on their average vehicle footprint (external size). What the government has focused on is reducing the number of inefficient and polluting vehicles, and that's to minimize the externalities they have to pay off down the road. But there's no focus on size per se.

The US isn't Europe. Our roads are much wider and can accommodate larger vehicles. Smaller cars don't always get better fuel efficiency; a Civic is more efficient than a Fit, and a Cruze Eco is as efficient as a Fiesta SFE. So if we do go gaga for small cars one day, it'll be because of their performance or style, and that's why I think cars like the MINI or Fiat 500 will still remain a niche.

I think you'll find the Fusion Hybrid and F-150 EcoBoost to be all quite large, and those will be the vehicles of the future.

Edited October 6, 2010 by pow

[Intrepidation]

A larger vehicle imparts a feeling of safety. It also negates much of the need for a second vehicle for vacations and trips to the Home Depot. If a family is to have one vehicle, it needs to serve the family's needs in all foreseeable situations. My cousin has four young sons under 12 years old who are into sports. When the real estate market crashed (she's a realtor), she traded her Excursion on an Outlook to save on fuel and payments. Well, that didn't last long. She now has a new Suburban in her driveway.

Clearly not a fan a halfway decent packaging.

[CSpec]

Depends on the Americans....the new GTI/Golf is up in sales, and the GTI is a verysuccessful niche model vehicle.

People will want idfferent things in cars...as an advocate of the free market, what is wrong with a free market that gives us the GTI, Cooper S, CTS, 3 series, Fusion, Escalade, Focus, Charger, and a bunch of other wonderful product.

Why the heck are people so threatened by small cars?

And why would we want to force familes to drive vehicles they won't fit into. Just came back from an 8th grade football game with my son daniel...lots of familes at the game driving MINI vans, Pick em ups and SUV's.

IMHO let the market do it's work, provide alternative fuels, and let us have great product for as long as we want it.

Well, yes. Obviously people should be free to buy whatever car they like. I'm just saying that the anemic sales of premium small cars shows that most Americans don't particularly like them. As is their right.

[Drew Dowdell]

Well, yes. Obviously people should be free to buy whatever car they like. I'm just saying that the anemic sales of premium small cars shows that most Americans don't particularly like them. As is their right.

3-series.

[Camino LS6]

Externally, the 3-series seems just about the right size.

However, I found the cockpit to be rather cramped (especially in the footwell).

Not a car I'd be happy with on a daily basis.

Edited October 6, 2010 by Camino LS6

[Drew Dowdell]

I don't think anyone on C&G can be considered a "typical" automotive consumer.

My point was that CSpec's assertion that people won't buy premium small cars is conspicuously wrong with the 3-series. Here in Chevy land, even with lots of hills and snow, you can't swing a dead cat without hitting a 3-series... I can't imagine what it's like in SoCal.

[ocnblu]

Clearly not a fan a halfway decent packaging.

I'm not sure what that means.

[Robert Hall]

After 16+ years of having SUVs as a daily driver, I can't see myself driving a compact car daily. Maybe a full size sedan. But I like the ground clearance, snow capability, high seating position, and interior space of an SUV. Even if it does only get 18 mpg.

Edited October 6, 2010 by Cubical-aka-Moltar

[Drew Dowdell]

After 16+ years of having SUVs as a daily driver, I can't see myself driving a compact car daily. Maybe a full size sedan. But I like the ground clearance, snow capability, high seating position, and interior space of an SUV. Even if it does only get 18 mpg.

Snow capability is a big concern for you there in Phoenix, eh?

Equinox 4-cylinder can do 30 on the highway if you're gentle with it.

[Robert Hall]

Snow capability is a big concern for you there in Phoenix, eh?

Equinox 4-cylinder can do 30 on the highway if you're gentle with it.

Well, I have gone up in the mountains in the winter a few times. But AZ will hopefully soon be in my rear view when I make my escape for greener pastures and grayer skies..

[Drew Dowdell]

Oh have I got the place for you today...

[Camino LS6]

Oh have I got the place for you today...

Here too lately.

[Dsuupr]

One of those luxuries is QUIET. My biggest complaint when I ride in any of the small cars, Civic, Impreza, 3, is the amount of wind and tire noise is so bad as to turn me off to the whole idea of owning something that size.

So, until smaller cars offer the amenities, ride, comfort, and quiet that the big SUVS can...this trend will continue.

I couldn't agree more. At this point in time, I would probably save a fair amount of money if I traded my Tahoe in on a new Spark, Aveo or Cruze, but it won't happen. Part of that is image as well. Cars have long helped us define what we want the world to think about us and at this point in my life I don't want someone defining me in the Aveo category.

Besides that, I know my vehicle uses the same amount of oil a prius uses and spews less emissions, so I am doing my part for the environment while still getting all the benefits of a big, quite, comfortable SUV.

[Dsuupr]

Change the fuel, not what we drive.

That is what I have been saying all along. Make the fuel from algae & waste and there will be no need to tear down mountains so that we can get to metal of which we will run out of. At this point we are looking at additional trade deficit with China to get the metals we need to build all the electric cars people are wanting.

If you have not already read the report I wrote over a year ago, with all of it now becoming a reality, check out http://www.scribd.com/doc/33118890/Cellulosic-Ethenal-Report-for-Yamhill-County

We don't need higher gas mileage, we need a different type of fuel.

[Camino LS6]

We don't need higher gas mileage, we need a different type of fuel.

This simple truth seems to escape those in power.

Pathetic.