Consumer demographics - the aging of the baby boom generation - also play a large role in the future of SUVs
and crossovers.
Theoldest baby boomers are now 59 years old, said Pipas, 58. Many are, orsoon will be empty nesters, and the idea of using "a step bar to climbup into the vehicle is going to have as much appeal as it did four orfive years ago."
Boomers will be looking for vehicles that aresmaller and have better ride and handling characteristics, and arelower to the ground than traditional SUVs, and that will continue toinfluence manufacturer offerings. The next car buying age group, Gen X,only have half the numbers of the boomers.
The final factorthat has led to the decline of the traditional SUV is the high price ofgasoline over the past two to three years. Consumers are now thinkingmore about fuel economy than they did during the last two decades, atleast since the oil crises of 1973 through 74 and 1980.
"Inlate 2002, I was at an auto conference for investors... and said thatthe
best days for traditional SUVs are behind us," Pipas noted,explaining that he was looking at the rise of the crossovers back then."In 2002, fuel economy was not an issue when I was thinking of the babyboomers and what they wanted, and I don't think it is the majorsustainable issue."
What the sustained rise in fuel prices hasdone is accelerate the movement of some customers out of large SUVs andinto crossovers. For example, the No. 1 vehicle that many Explorercustomers are buying, when they want to switch out of an SUV, is theFord Freestyle CUV.
"There are a number of people who werebuying large SUVs who didn't need them," Pipas said. But, if "they needto haul a boat or a trailer, they might stay with their (SUV)indefinitely."
 |
| Ford will debut the new Fusion-based 2007 Edge CUV in Detroit next month, featuring an all-new 250-horsepower 3.5-litre V6 and equally new six-speed automatic transmission. (Artist's Rendering (modified for size): Roger Kim, Ford Motor Company of Canada) |
Theoldest baby boomers are now 59 years old, said Pipas, 58. Many are, orsoon will be empty nesters, and the idea of using "a step bar to climbup into the vehicle is going to have as much appeal as it did four orfive years ago."
Boomers will be looking for vehicles that aresmaller and have better ride and handling characteristics, and arelower to the ground than traditional SUVs, and that will continue toinfluence manufacturer offerings. The next car buying age group, Gen X,only have half the numbers of the boomers.
The final factorthat has led to the decline of the traditional SUV is the high price ofgasoline over the past two to three years. Consumers are now thinkingmore about fuel economy than they did during the last two decades, atleast since the oil crises of 1973 through 74 and 1980.
"Inlate 2002, I was at an auto conference for investors... and said thatthe
 |
| What the sustained rise in fuel prices has done is accelerate the movement of some customers out of large SUVs and into crossovers. (Photo: Trevor Hofmann, Canadian Auto Press) |
What the sustained rise in fuel prices hasdone is accelerate the movement of some customers out of large SUVs andinto crossovers. For example, the No. 1 vehicle that many Explorercustomers are buying, when they want to switch out of an SUV, is theFord Freestyle CUV.
"There are a number of people who werebuying large SUVs who didn't need them," Pipas said. But, if "they needto haul a boat or a trailer, they might stay with their (SUV)indefinitely."