zzdcar
Home
/
Reviews
/
Buying
/
Peak SUV Isn't Here Yet But It's Coming Ever Faster
Peak SUV Isn't Here Yet But It's Coming Ever Faster-July 2024
2024-02-19 EST 22:09:42

Image for article titled Peak SUV Isn't Here Yet But It's Coming Ever Faster

The : Where and when might it end? Because it will end, and it . A suggests that that end might be closer than we think.

The current market landscape is, basically, about what you’d expect, given what happened the last time we went through this. A little refresher: Around this time eleven years ago, GM pulled the plug on a new platform for the Yukon, Suburban, and Escalade. The SUV market was quickly fading, thanks to expensive gas and a recession that made SUVs unaffordable. And so GM found itself in the opposite position it finds itself today, trying to bail as fast as possible on SUVs.

From :

The executives killed the [Yukon, Suburban, and Escalade platform] project without a single dissenting vote. And with that, the era of the big S.U.V. was as good as dead, done in by soaring gasoline prices and consumers fleeing to smaller, more fuel-efficient cars.

“It would have been very difficult in today’s environment to spend a couple of billion dollars to do a replacement,” said Robert A. Lutz, G.M.’s vice chairman and head of product development. “Reality had set in.”

The era of of the big SUV was indeed as good as dead, at least then. The biggest victim was Hummer, of course, which shut down entirely, but, interestingly, none of the Big Three carmakers gave up on the segment entirely, or even partially, like . That’s probably because SUVs have always been a more profitable proposition vis-à-vis sedans, and so even if they weren’t selling as they used to back in the Great Recession, they still brought in money at low volumes.

Fast forward to today, and carmakers can’t stop making SUVs of all shapes and sizes: whole new models, in fact, like the (really big and really good) Kia Telluride . What surprised me, via the WSJ, is how many new models are yet to come.

The number of crossover and sport-utility models on sale in the U.S. has steadily climbed this decade from 70 individual nameplates in model-year 2014 to 96 currently, according to a Bank of America report. By 2023, that figure is expected to rise to 149 models, the most ever for this category, the report found.

More than double the number of SUVs in less than ten years! That’s astounding, though perhaps not surprising for carmakers who only respond to a few real incentives, which are government regulations () and, of course, profit numbers and share price.

The problem here is that the market is pretty much already full, which means that the market will have to splinter when all these SUVs do materialize. Not everyone wants an SUV, it turns out, and those who do, these days, probably already have one.

Industry executives don’t anticipate buyers will swing back to sedans en masse. But analysts say demand for crossovers and SUVs is topping out amid a broader slowdown in U.S. auto industry sales, and the market share for these models isn’t likely to grow too much beyond its current size.

“The piece of the pie is about set,” said Jeremy Acevedo, an analyst for Edmunds.com.

While sales of crossovers and SUVs rose 1.6% in the first half of 2019, the pace of growth has slowed considerably from the 13.2% increase recorded in the same year-over-year period last year, according to research firm LMC Automotive.

Somewhat hilariously, automakers say that, you know, despite the numbers, they got this all figured out (emphasis mine).

Already, crossovers and SUVs are taking longer for dealers to sell, with the average vehicle sitting on the new-vehicle lot for 71 days in May, up from 63 days last year and 51 days in 2015, according to data collected by Edmunds.com. That is compared with 79 days for sedans, a figure that hasn’t changed much over the last three years.

[...]

Auto executives say they aren’t too worried because even as the sales rate slows, there is still healthy demand among consumers for these types of vehicles and their models will continue to stand out.

said Bill Fay, senior vice president for Toyota North America.

It must be reassuring for Toyota’s shareholders that the company relies on a metaphorical crystal ball to make product decisions, since they all saw it coming last time. But, snark aside, Toyota I think has been smart, like other Japanese automakers and the Europeans, in not abandoning sedans like Ford and Chevy have. The Japanese and European carmakers know that the American SUV boom won’t be for forever and, even if they don’t know, they’ve backed into the what’s looking more and more like the correct position regardless.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Buying
For $4,000, You’ll Flip Over This Reliant
For $4,000, You’ll Flip Over This Reliant
Schoolhouse Rock once espoused that three is a magic number. And while that hipster edutainment series never expanded the concept past basic math, today's Reliant can, because it's magically threelicious. Fake, phony, poseur, fraud, gonif; all good choices for vanity plates to be affixed to yesterday's , which, while it...
Jul 8, 2025
For $15,995, It’s the Falcon and the Blowman
For $15,995, It’s the Falcon and the Blowman
The Peregrine Falcon is considered to be the World's fastest animal, with a diving speed of over 200 mph. Today's Ford Falcon won't do that, but then again, have you ever seen a Peregrine topless? At the dawn of the sixties, the major American manufacturers all began introducing smaller, more...
Jul 8, 2025
For $3,900, Be a Straight Up G
For $3,900, Be a Straight Up G
The Current Lincoln Town Car is not long for this world, and its styling wasn't all that elegant to begin with. Today's '89 however is sharp enough that you could cut a line with it. You probably wouldn't want to be reliant on yesterday's to get you anywhere in one...
Jul 8, 2025
For $900, Your Death is Almost Certain
For $900, Your Death is Almost Certain
Call 411 on your phone and you'll get Information. That might be helpful as the first question that springs to mind about today's Olds 455-powered 411 is WTF?! Beaded seat covers, along with the unavoidable presence that only an impressively large car, or a trail of used TP stuck to...
Jul 8, 2025
For $12,500, Get on the Bugus
For $12,500, Get on the Bugus
Tastes great, less filling, peace without compromise, there's plenty of have-it-all maxims. And for today's , you can add the Bugus to that list. What, you might ask, is the Bugus? Well, let's start with what the Bugus is not: It isn't a mobile version of a Roach Motel, it's...
Jul 8, 2025
For $35,000, Slip your Crockett Into This Tubb.
For $35,000, Slip your Crockett Into This Tubb.
Only 122 real 365 GTS/4 Spiders were ever built and they now regularly command upwards of a million bucks. Today's McBurnie-built Faux-rrari is only thirty five grand, but it still looks like a million. When I was a kid, one of my favorite 1/24 scale models was Monogram's , a...
Jul 8, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved