Kbb.com: The Slow Extinction of the SUV | Dealer Communications

According to Alec Gutierrez, senior market analyst of automotive insights, Kelley Blue Book, the exodus away from SUVs has been underway for the past five years and will likely continue for the foreseeable future.? Since 2007, mid-size SUV sales have dropped by 70 percent, while compact crossover sales have skyrocketed by 50 percent.? Through the same time period, the number of mid-size sport utility vehicles offered up by manufacturers for sale has declined from 19 nameplates in 2007 to a paltry seven today.? All that remains today are the Jeep Wrangler, Jeep Liberty, Toyota 4Runner, Toyota FJ Cruiser, Nissan Pathfinder, Nissan Xterra and Dodge Nitro.

It?s no secret that America?s love affair with the mid-size SUV has steadily faded during the past several years.? As gas prices approached $4.00 per gallon not once, but three times since 2008, consumers have reassessed their priorities and determined that in most cases, a truck-based gas-guzzling SUV isn?t necessary.? Unless you have a need for the off-road or towing capability of a true truck-based SUV, there are far more suitable alternatives available today that offer comparable utility with the added bonus of improved performance, handling and fuel economy.

Not only has consumer preference for SUVs waned, the priorities of manufacturers have shifted to producing vehicles with better fuel economy to meet increasing CAFE standards.? For 2012, CAFE standards call for light trucks such as SUVs and Crossovers maintain just over 24 mpg.? This is expected to increase to 28.8 mpg by 2016 before maxing out at 40.3 mpg by 2025.

Fuel efficiency has become one of the top factors consumers consider when shopping for a new vehicle.? According to the Q2 Consumer Sentiment Survey conducted by Kelley Blue Book?s Market Intelligence group, 19 percent of all respondents indicated that they were shopping for a new vehicle to obtain better fuel economy than the vehicle they were replacing.? Fuel efficiency ranked second out of the 12 reasons consumers indicated they were in the market for a new vehicle.

Due to their larger footprint and weight, traditional SUVs are less favorable among automakers focused on producing more fuel-efficient crossovers.? In fact, the latest generation Jeep Grand Cherokee, Dodge Durango and Ford Explorer all converted from body on frame SUVs to unibody crossovers to help lower weight and increase fuel efficiency.? As CAFE standards continue to rise and consumers seek more fuel-efficient alternatives, SUVs will continue to lose market share.

As the popularity of SUVs has declined, crossovers have emerged to fill the gap.? Crossovers offer AWD, towing capability near that of a comparable SUV, an elevated seating position and many of the same characteristics that helped endear the SUV in the hearts and minds of consumers through the 1990s and early 2000s.? Crossovers deliver on nearly everything SUVs bring to the table, while also offering performance, handling and fuel economy comparable to a mid-size or compact sedan.

Not only are the crossovers available today far more fuel efficient than traditional SUVs, in some cases, they actually approach the fuel economy of small cars.? The all-new 2013 Mazda CX-5 with SKYACTIV technology offers up an incredible 35 mpg on the highway; equal to the redesigned Toyota Camry and a scant 5 mpg shy of the 40 mpg benchmark of the most fuel-efficient subcompact and compact cars.? It is able to achieve this without sacrificing ride height, performance or utility, making it a practical alternative for someone looking to transition from an SUV to crossover.

Among those left standing, Nissan has already announced that the next generation Pathfinder will become a crossover sharing its architecture with the well-received Infiniti JX.? The Liberty also is expected to become a crossover for its next redesign, while the Dodge Nitro ceased production altogether late last year.? By 2014, the only mid-size SUVs left standing will be the Jeep Wrangler (a favorite among enthusiasts), the Toyota 4Runner, Nissan Xterra and the Toyota FJ Cruiser.

Although mid-size SUV sales have all but disappeared, there is still a large segment of the population that prefers utility vehicles over cars.? As the mid-size SUV continues on its long death march, the crossover will solidify its position as the vehicle of choice for consumers seeking utility.

SUV Sales Dive while Crossovers Surge
Segment	2007	2008	2009	2010	2011	2012	2007 vs. 2012
Compact Crossover	650,164	688,263	545,760	649,027	817,992	960,217	47.7%
Mid-Size Sport Utility	718,606	449,477	222,738	241,402	176,845	198,930	-72.3%
Total Sales	9,541,886	8,608,590	5,795,434	6,661,036	7,388,887	8,421,167	-11.7%
Note: Chart depicts sales through the first seven months of each year displayed

Source: http://dealer-communications.com/news/kbb-com-the-slow-extinction-of-the-suv/

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