Wrangler went on a summer tear last month, more than doubling its July 2009 number, and leading SUVs to a strong rally. The segment’s top 18 nameplates all improved their year-over-year numbers last month, as gas prices look to hold steady through the summer (only the Suzuki Grand Vitara lost ground). SUVs should be way up again (year-on-year) this month as well, as Cash For Clunkers limited SUV sales in August 2009. Strong sales in this segment could continue into the fall on the strength of new launches like the Jeep Grand Cherokee, and Ford Explorer. On the other hand, with the Explorer moving to a Crossover platform and lines between SUVs and CUVs generally blurring, it’s becoming increasingly important to compare mid/large CUVs against this SUV segment. Based on that comparison, it’s easy to see that the mass market tends to pick road-oriented people-haulers rather than offroad-oriented rock crawlers. SUVs may be booming this summer, but in the big picture they’re melting away into the ever-expanding Crossover category. Hit the jump for a bonus graph of Luxury-brand SUV/CUV sales in July.
Tag: SUV

I recently attended a fancy-pants dinner held by Chrysler PR for some Houston-area bloggers. We were wined, dined and introduced to the 2011 Grand Cherokee. While free food and journalistic integrity are a tough combo to swallow, I found something entertaining and inherently blog worthy: the castrated 2011 Ford Explorer is in the new Grand Cherokee’s gunsight. Why? One of the SUV’s most famous nameplates is now a crossover, while another is still an SUV. But neither of them like being called names.
Several years ago, I paid heed to my inner child and attended Iron Maiden’s “Aces (Very) High Tour”. During one of the breaks, singer Bruce Dickinson said, “I don’t know what’s going on. We’re still making records, and I think they’re pretty good. But nobody on the radio wants to play them. They don’t play that kind of music now. Even if people want to hear it.” Intrigued by his comment, I bought the new Maiden record. He’s right. It’s pretty good, even if the music industry has moved on. It’s also a completely standard, formulaic effort that sounds exactly like every Iron Maiden record after their final burst of creativity, “Seventh Son Of A Seventh Son.”
What if… the new Iron Maiden record had been a double album, with the first disc being an absolutely perfect distillation of every previous record, and the second one being ten jazz standards, all performed to the highest standard of musicianship? Would anybody buy it, or would they still line up for the latest MP3s from the Silversun Pickups? That’s the 2011 Jeep Grand Cherokee in a nutshell. It’s staggeringly competent off-road, but it’s also an absurdly composed, quiet, and comfortable freeway cruiser. Are you interested, or would you rather have a GMC Acadia?
Alfa’s been talking about selling an SUV for years now, as the brand has thrashed around looking for a rescue line. Now, a long-rumored ute named Kamal (after an Alfa SUV concept) has finally materialized at Alfa’s 100-year anniversary, looking an awful lot like a BMW X1. In fact, it is a BMW X1 with tacked-on Alfa cues. If this is a sign that Alfa fans are desperate for an SUV, their dreams will come true. Automotive News [sub] reports that SUVs are a crucial component of Alfa’s plan to sell half a million cars per year by 2014, up from just over 100k last year. A small SUV, to be built by Chrysler and imported to Europe, will start sales in 2012, with another, larger ute (based on the next Jeep Libery) planned for 2014. In other words, look for rebadged Chryslers to rescue Alfa’s SUV dreams rather than a taped-off BMW. No wonder analysts are so skeptical of Alfa’s turnaround plans, telling AN [sub]
The potential of the (Alfa) brand is huge, but to multiply sales fivefold in five years they probably also will need to sell cars on the Moon and on Mars
It’s been written at least a few times here at TTAC that crossovers are the methadone of SUV addiction, and Ford is proving the point, as it prepares to launch its 2011 Explorer. Once one of the most popular SUVs in America, the Explorer is going to a unibody chassis, and the reactions to teaser images on Facebook show that America is still struggling with its SUV addiction. Facebook reactions [in gallery below] show a mixed reaction to the Explorer’s new crossover-inspired look, including unfavorable comparisons to such “cute utes” as the Honda CR-V. Ford is reacting with a video [above] which describes the Explorer as a “21st Century SUV” that offers “do anything, go anywhere” capability. Which is funny, considering that the original Explorer was never exceptional at either off-road or on-road capability. But hey, who ever said that addiction was a logical choice?
Possibly worried that SUVs are falling out of favor along with the dinosaur juice that keeps their desert kingdom afloat, Saudi Arabia is getting into the SUV business, with this Ghazal 1. Personally approved by King Abdullah, some 20,000 of these peculiarly-styled utes will be sold around the Gulf Region each year, according to Top Gear. The project started life as a Mercedes G-Wagen, which was re-skinned by students at King Saud University. Apparently the king was so impressed with the design (or just bored enough with his Escalade) that he approved the thing for production. Pricing, equipment and options are not available at the moment, but don’t expect the Ghazal 1 to do particularly well outside of the circle of Saudi Royal Family dependents. On the other hand, that is one hell of a market right there…
Spoiled market watchers were disappointed by China’s less than red-hot May numbers: Passenger vehicles grew just 23.2 percent, the whole market grew 26 percent. Now here’s a number worth waiting for (or to induce a heart attack, if you have green leanings:) (Read More…)
Chrysler has announced pricing for the new Jeep Grand Cherokee, arguably the most important vehicle it will launch this year. The cheapest option, the Laredo 4×2 (which isn’t even mentioned in Chrysler’s release), starts at an MSRP of $30,995 (including destination charge, confirmed via Twitter)… at least until ChryCo rolls out the $5k cash back it’s offering on the outgoing model. Hit the jump for trim levels and corresponding pricing.
We live to serve here at TTAC, so when our faithful commentators requested a comparative graph of Chevy Suburban and Tahoe Sales from the heart of the SUV boom, who were we to say no? And sure enough, there are some interest lessons to be learned from the exercise. In 1999, as the SUV boom headed for the stratosphere, the ‘burban actually passed the Tahoe in terms of volume for one year. But the fad wouldn’t last: Suburban sales peaked in 2001, a year before the Tahoe topped out at nearly 209k units. The Suburban also fell further, suffering big year-over-year losses until a pre-gas-shock uptick in 2007, a year after the Tahoe recorded its first post-peak upswing. Counter-intuitively, the 2008 gas shock actually hurt Tahoe volumes even worse than Suburban, shedding over 50k units (or about 60 percent) compared to 2007 levels. Over the same period, the Suburban “only” lost 30k units of volume (about 55 percent).

Not so long ago Volvo attempted to poach some customers from BMW by offering high-performance R variants of the S60 sedan and V70 wagon. Then it decided these weren’t selling well enough to justify the expense of developing them. So now we’re offered “R-Design” variants instead. These involve larger wheels, a mildly stiffened suspension, and a slew of styling tweaks. Not part of the recipe: additional horsepower. Halfway through the 2010 model year the XC60 gained such a variant. All sizzle, or is there some steak here as well?
The French-Japanese relations continue to bloom. Here is the latest tie-up. Forget former on-again, then off-again relationships. This time, it’s serious. The Nikkei [sub] reports that Mitsubishi Motors and France’s PSA have tied the knot and will jointly breed new sports utility vehicles. (Read More…)
Within my first mile in the original Kia Sorento I couldn’t help but wonder, “Is that a live rear axle I feel?” I stopped the vehicle, peered beneath it and, sure enough, there it was. The Sorento looked like a car-based crossover, but body-on-frame construction, a two-speed transfer case, and a live rear axle dwelled beneath the Mercedes-inspired sheetmetal. The upshot: superior off-road capability, but subpar fuel economy and ride quality. Well, the Sorento has been redesigned, and as with the Sportage before it the trucky bits have been tossed in favor of a Hyundai car-based foundation. Specifically, the 2011 Kia Sorento is now a Hyundai Santa Fe beneath the surface. Now that it’s much like all of the others, why buy the Kia?
Automotive News [sub] quotes CAW President Ken Lawenza as saying “supplier challenges” have shut down production of the Chrysler Group’s minivan plant in Windsor, Ontario. Chrysler confirmed that the plant would be closed until February 1, but refused to elaborate on the circumstances. According to Lawenza, “the reason is because if a supplier never lived up to their contract, then it could be legal ramifications. We let those guys hash it out legally.” The President of CAW Local 444 Rick LaPorte adds “it’s a piece for the key fob, so my understanding is that it’s a raw material issue. The good news is that it’s not an inventory adjustment problem or a lack of sales; it’s a good problem to have.” You know, relatively speaking.
(Read More…)
TTAC Commentator PG writes:
Sajeev, In their December 2009 issue, Car and Driver has a great article about how extended warranties — such as those offered by U.S. Fidelis and others — are largely scams that deceive customers, don’t really cover the cost of repairs at all, and don’t give refunds at cancellation.
My parents own a 2002 BMW X5 4.4. They bought it from Carmax and have the extended warranty from that dealership. It’s a fantastic car, but it’s had some very costly repairs — thankfully, those have been covered in full or at least in part by Carmax’s warranty. The thing is, that warranty expires this month and can’t be renewed.
The ‘rents are thinking of getting an extended warranty for the Bimmer, but after reading that C&D story I’m pretty convinced they would be throwing their money away. My question: are there ANY extended warranties out there that they can use? What can they do to help avoid the full cost of repairs?
Buying a new/different car isn’t really an option right now, because they want to keep the X5 as long as they can. The car has about 80,000 miles on it and still runs well, except for the occasional hiccup, but those can be pretty pricey on a BMW.
If you or the best and brightest have any suggestions, I’d love to hear them.
In a delightfully surreal bit of news out of India, a man sued GM for claiming one of its SUVs had mountain goat-like capabilities when it couldn’t in fact navigate one foot-deep water. What, you might ask, is the SUV in question? The answer is just another amusing twist to this hilarious tale of marketing claims meeting cold, wet reality. Here’s a hint: it’s sold in the US, but not as a Chevrolet…














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