With midsize SUV sales down sharply so far this year, many automakers are left wondering what to do with the segment. Largely dominated by body-on-frame 4WD vehicles, the segment has morphed from pint-sized replicas of Blazers and Broncos into vehicles that are often only a few inches smaller and a few pounds lighter than full-sized SUVs. With little or no fuel-economy or price advantage, the buyers that need towing capabilities seem to be taking a step up in the market, while those that are looking mainly for people-hauling abilities are spreading their sales around other vehicles in the showroom, such as minivans, crossovers, and large sedans.
Those automakers that previously relied on strong sales in the segment to boost their bottom line are now faced with a difficult decision - dump billions of dollars into a segment that may be in a persistive vegetative state, or let those products wither on the vine with predictable results. Ford has coined a new term, stating that it won't "Crown Vic the Explorer" and will continue to refresh the former cash cow. The fate of GM's TrailBlazer is unclear, with the automaker dumping the ill-received long-wheelbase version (a truck that was substantially longer than the supposedly-larger Tahoe), trimming production capacity, and postponing or cancelling an upcoming redesign. The perilous financial positions of both companies means that they can ill-afford a mistake. Meanwhile, Chrysler is looking toward diesel power and the promise of improved fuel economy to pump up the sales of its Jeep Grand Cherokee, which are down 26% so far this year.
[Source: BusinessWeek]













Reader Comments (Page 1 of 2)
Sid @ Jun 18th 2006 5:28PM
Big surprise. The RAV4 is the exact same thing as the Highlander. If they make the Highlander bigger, it will be the same thing as the 4Runner. North American market planners have to stop this 'bigger is better' attitude.
Talis @ Jun 18th 2006 5:51PM
This is a tricky question to solve. Knowing that SUV's like the Blazer have grown into SUV's like the Trailblazer, and knowing also that other models have stepped into the smaller size, it will be difficult to come up with the magical answer GM Ford and Dodge will need to stay afloat. I will pose the question of whether or not the new line of crossover's (GMC Acadia) are actually going to replace the GMT-360 platform. I would not be surprised to see that actually happen due to the apparent fact that those who need the truck part of SUV's simply get the truck and those who need the car part of SUV's simply get the car.
Although I do not see Ford Jeep or Dodge have too big a problem with this, I do see GM having a HUGE problem as SUV's accounted for about 70% of the total sales revenue last year. Even if you produce that 70% of sales at a net loss that is still something to be cautious about. GM makes more SUV's than any other manufacturer and so I would simply caution GM when it comes to renewing, replacing, or simply dropping a current model.
All in all this is going to be very interesting.
Kumar @ Jun 18th 2006 5:52PM
It's not necessarily 'bigger is better'. I think it's more like 'America is fatter so they need bigger cars and beefier engines to haul their jumbo selves around'.
El Norte @ Jun 18th 2006 6:10PM
"It's not necessarily 'bigger is better'. I think it's more like 'America is fatter so they need bigger cars and beefier engines to haul their jumbo selves around"
Hahahahahahahahahahahahahahahahahaha.
Kumar, your wit is boundless. I've never heard anyone with such a novel take on America and it's people. Please tell us more...
Juan-Tan @ Jun 18th 2006 6:18PM
Yeah America is fat but lets be honest, how many times have you seen a fat lady driving around in a little cavalier.
the friendly grizzly @ Jun 18th 2006 6:20PM
The only man called Kumar I ever knew was a very nice, gentlemanly sort. But he was also a lard-butt, strangely enough...
Bleed Red White and Blue @ Jun 18th 2006 7:43PM
Hey Kumar, go get your buddy Harold and go to WhiteCastle.
Art @ Jun 18th 2006 8:09PM
haha@7.
Anyway, this is, I agree, somewhat of a conundrum. make the smaller ones more car-ish, let the hulking Tahoe remain a sparesely-used towing brute. Why can't dodge bothered to just offer an dodge-named, more civil looked Commander, dump the Durango, and stretch it to make a veritable Tahoe/Expedition rival? the durango is so...
Non-Bizarro Adam @ Jun 18th 2006 8:25PM
Now that (#7, Bleed Red White and Blue) is humor, El Norte.
BTW, White Castle is good as all hell, especially after a 40 (or three) of Old English. Warms the soul just thinking about it
Ryan @ Jun 18th 2006 11:13PM
It's funny yesterday I was at the grocery store and found a 1988 bodystyle Honda Civic next to my 2004 Mazda 3. It's crazy that both are "compact" cars, the Mazda is sooo much bigger looking, wow the definition of a compact car has sure changed.
Nate Wesley @ Jun 18th 2006 11:20PM
At the risk of saying something laughable (fire away, Autoblog commentators)...I'd like to see someone develop a minivan that didn't have the 'soccer mom' stigma noosed to it. Seriously, I really liked the styling of the previous Honday Odyssey, and would've loved getting something like that if it had AWD or 4WD and four removable captains chairs (don't need that third row).
Seems like the best thing to do would be for the automakers to developing a mix of products that can bring folks back to cars, or develop some really good crossovers and minvans.
shiznannigan @ Jun 19th 2006 1:05AM
Nate, if you don't need the third row, why not just get a station wagon? Unless you really enjoy a more upright seating position, you can enjoy benefits like better mileage, better handling/performance, and not being knocked across two lanes of traffic by a gust of wind.
As far as the soccer-mom stigma that gets placed onto minivans... I don't really get it. I see way more soccer moms in SUVs, especially the "macho" ones like the Durango and H2.
Trenton Lipscomb @ Jun 19th 2006 1:59AM
Nate: Mercedes R-class? Not my cup of tea, but it fits your seating requirements.
Mike G @ Jun 19th 2006 5:00AM
There are a lot of great cars in today's marketplace, but there's also more craptastic cars than ever.
First: That Trailblazer is CRAP! Drive one sometime it feels like you're pushing a little red wagon through half dry concrete. That's the exact steering sensation. It's supposedly got a big V6 in there, feels less powerful than a 1.5 liter four banger.
Even that Mercedes R class someone mentioned is a waste of $70,000. It looks like it was designed by aliens on speed. Why not just buy a fully specced Mazda 3 and use the extra fifty grand to go on a really sweet three month vacation? A Mazda 3 beats both by a mile, much more fun to drive too if you're, you know, not a walking stiff, and into that taking corners at speed thing. Plus the Mazda 6 gets two thumbs up, everyone seems to overlook that great car.
Dave M. @ Jun 19th 2006 8:28AM
I had the opportunity to drive a GMC Envoy last summer for a couple of weeks. I didn't like it's ponderous, harsh ride, the hard plastics, nor the gas mileage (13-14 with the I6). That said, it served its purpose well of getting me and my family around on vacation.
The heady days of 1997-98 are over - where anyone and everyone bought an SUV for the room, driving stance, and coolness factor. Now that there's no such thing as cheap gas, these extravagances are the first to go. Besides, crossovers now can handle the space needs of many families while making the vehcile easier to drive and (most likely) better mpg.
Based on the relative primitiveness of these vehicles to begin with, the authentic customer (boating/camping, off-road, etc) probably isn't expecting much beyond occasional upgrades to the chassis, interior, etc. Thus, the prices should remain relatively low because of lower investment to begin with.
I never understood the constant increase in size when vehicles are restyled. With the exception of rear seat legroom (being 6'4", there is no such thing as enough), smaller vehicles are more fun to drive, and more manageable to park.
I happen to drive an Isuzu Trooper - and after 5 years I continue to admire how perfectly sized it is. I do wish the mileage was better (17), but I also think it's pretty reasonable for it's weight and intention.
That said, I look to the future, in 2010, when I plan to replace it. My goal is 25/25 - base price $25k, at least 25 mpg. Vehicles like the Honda Stream and Ford Edge interest me very much.
Richard Warren @ Jun 19th 2006 8:37AM
Just bring back a mid 60's to mid 70's real station wagon, like a Country Squire and get it over with. SUV's=glorified wagons and the f**king things never get off the road anyway.
Bob @ Jun 19th 2006 8:46AM
Didn't DMC just announce they were cutting Diesel production for the Grand Cherokee and Liberty due to emmission controls?
I agree with most posts that we need to go smaller vehicles, station wagons and the sort. I ignored the stigma and got a minivan (3 kids with lots of friends), it may not be pretty, but it sure fills the needs better than an SUV.
JZeke @ Jun 19th 2006 8:54AM
Why cant Ford "Crown vic the Explorer"? They certainly seem comfortable doing that with the Focus... Some species just cant evolve any further, so they must die.
I am not sure who needs a body-on-frame truck that cant tackle a mountain trail. Explorer buyers, by-and-large just want a tall and handsome looking wagon that can manage snow and dirt without complaint. Im guessing thats what most of the segement wants.
The other Bob @ Jun 19th 2006 9:36AM
Maybe if GM put the Trailbalzer and the Colorado truck back on the same platform, like they did in the previous generation, they could afford to build both.
Nick @ Jun 19th 2006 9:54AM
The GMC Acadia should be a Chevrolet in the first place, a replacement for the Trailblazer. GM is making these good-looking new crossovers and limiting sales potential by not giving one to Chevrolet. Since it is car based; GMC shouldn't have a version. Let that replace the Trailblazer, and then bring back the old Blazer by building a real SUV (like the Xterra) off the Colorado platform. One true SUV for the people who really like and use them, and then one stylish and refined/efficient family carrier. The Trailblazer is a half-assed attempt at covering both markets and specializing in none...no ground clearence/off road package so no one in their right mind would ever really drive it through deep sand or on a rocky trail; yet the interior, having the worst design and parts/build quality of any vehicle on the market today, is sub-par for a family vehicle, and the heavy platform and 4wd lo gear (that will never be used) lowers fuel economy. Give GMC a version of the Colorado-based SUV. Oh yeah, and while they are at it, put the 4.2L I-6 from the Trailblazer in that truck, also--that engine was the only redeemable quality of the Trailblazer.