New York Show is Backdrop for Reveal
Volvo‘s current XC90 was introduced for the 2003 model year, and is due for a bit of a refresh. As the U.S. accounts for about 50 percent of all XC90s sold, it is no surprise that the minor change for 2007 model year was introduced at the 2006 New York auto show. Brought to you by AutoPacific and VehicleVoice, below is a first review of the changes, complete with before and after photos.
Among the most significant aspects of the update, which include some new safety features as well, is an all-new 232HP 3.2L in-line six-cylinder engine to slot between the 208HP 2.5L turbocharged I5 and the 315HP V8. The new six launches in the S80, though quickly followed by installation in the XC90, and is mated to a six-speed automatic transmission. The new engine will figure prominently in Volvo’s range over the next several years.
Back in November 2005, a VehicleVoice Blog commented on the existence of a periodic jihad on sport utility vehicles in the USA and worldwide. The introduction of General Motors’ GMT900 SUVs – the Chevrolet Tahoe and Suburban, the GMC Yukon and Yukon XL, plus the Cadillac Escalade and Escalade ESV have set the earth-is-flat crowd wailing again.
Audi Q7 Latest Target of SUV Jihad… This Time From British – Austrian Axis
But June 2006 intro of the Audi Q7 in the USA following its earlier introduction in Europe also will be watched closely. As Audi is about the last major brand to add an SUV to its lineup, it is a fresh target for the anti-SUV crowd. The March 2006 issue of CAR Magazine is a case in point. Georg Kacher, a 6-foot, 13-inch Austrian based in Germany, writes, “Big, heavy, chunky, aggressive, unwieldy – SUVs deplete our resources, tear up the countryside and flatten whatever they hit.
So why does a company like Audi, renowned for advanced engineering enter this bad karma segment?”
Because the market is allegedly craving a mud-crawler made in Ingolstadt, and because Audi firmly believes it can add a new dimension to the SUV game.”
As with many non-USA automotive journalists and even American buff book scribes, Kacher’s loathing of SUVs is mis-directed.
SUVs respond more to customer pull than manufacturer push. After the demise of station wagons (or estates as the Europeans so lovingly call them) and the image black hole called Minivans, came sport utility vehicles. These jack-of-all-trades vehicles carry people and stuff with aplomb. Well… more aplomb today than at any time in the past when they were admittedly crude trucks with a closed in cargo area. They go anywhere, anytime, with anyone, carrying anything within reason. They come in all flavors from the late and not particularly lamented Ford Excursion to the Suzuki Vitara. Populated between the Excursion and Vitara are SUVs of every ilk. Some are suited for suburban streets only. Some are rock crawlers. Some are designed to tow horse trailers and boats.
The beauty of SUVs is the breadth of choice within the segment. The SUV buyer has the luxury of choosing between more brands and more models than ever before. Like the overall auto industry, the larger SUV segment is atomizing into smaller and smaller niche entries.
Choice is good and Audi is welcomed.
Pricing for 2007MY Suburban Follows Tahoe with a Drop in MSRP
According to an announcement from Chevrolet, a comparably equipped 2006 Chevrolet Suburban LS was $2550 more expensive than a 2007MY LS. This may well be true for the new Suburban’s MSRP, but the transaction price for the outgoing SUV was far lower than MSRP, sometimes varying appreciably from month to month. GM’s new approach to pricing is logical, whether customers can be weaned off incentives or not. If your vehicles almost never sell for full price and there is a significant difference between transaction prices and MSRP, the MSRP is clearly set above what customers are willing to pay. Moving MSRP and transaction prices closer together, in the long term, should improve the image of the brand. Some buyers will feel smart for getting the “great deal” incentives can appear to be, but others are turned off by constant loud and dramatic incentives.
While a 2006 Suburban 1500 4WD started at about $42,500, the LTZ package (which included the 6.0L engine) also added almost $11,000 to the price. For 2007, Chevrolet says the 4WD LTZ starts at $48,455. Though the trim package components may have shifted a bit, both LTZs get the bigger engine and there is a price drop between the models.
The reduced pricing strategy is supposed to help Chevrolet and GM reduce their dependence on rebates, incentives, a deal-of-a-lifetime sale periods, like last fall’s Employee Pricing for everyone and even the $5500 hundred sitting on the hoods of 2006 Suburbans through at least the end of February. Dropping the price by something in the neighborhood of $2500 can earn some goodwill as well as setting themselves up for potentially smaller rebates if they are needed down the road. Whether this really works with customers now conditioned to blow-out sales and large incentives remains to be seen.
Read on for the official Chevrolet 2007 Suburban pricing release.
With Ford and GM easily dominating the full-size SUV segment and both companies offering heavily revised and improved entries for the 2007 model year, it is a good time to be a large-SUV buyer. Beyond the updates to Expedition and the GM lineup (GMC Yukon/Yukon XL, Cadillac Escalade and Escalade ESV, Chevrolet Tahoe and Suburban), Chrysler joins the fray with the Aspen and change is in the wind for the Toyota Sequoia soon as well. Though the sheer number of people buying full-size SUVs is shrinking in the current climate of fuel-cost concerns and an uncertain economy, there are still customers whose lives demand the level of utility that can only be found in a vehicle this large, and these buyers have lots of new toys to pick from this fall.
Ford has released much of the information on the new Expedition, which reaches showrooms in fall 2006 in two lengths. With the 2007MY, Ford buyers can go from Escape to Edge to Explorer to Expedition to Expedition XL in their search for their own “just right” sized SUV.
contributor and AutoPacific
president George Peterson has had considerable experience with the Ford Expedition, having leased four in a row until he decided he was in a rut. Will the new Expedition be enough of a change to get him out of his CAR and back into an SUV? Time will tell.
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Want to see the brand new 2007 Cadillac Escalade? Through our exclusive video tour, we show you every inch and nook and cranny.
Also in this episode, learn from our resident expert how the Escalade was born and evolved into the super lux SUV it is today. And finally, we include a stop at the VIP Auto Fashion Show at the Anaheim Convention Center where we asked other car enthusiasts “What’s Your Dream Car. The answers might surprise you.
Crossover SUVs will outsell Traditional truck-based SUVs beginning in 2006. This forecast comes from George Pipas, Ford’s Manager of Sales Analysis and Reporting in a presentation in Long Beach, CA on December 12, 2005. Refer to the VehicleVoice Blog on December 8 citing a USA Today article on similar observations.
A Few Comments on What a Crossover SUV Is
Pipas’ analysis charts the meteoric rise of Traditional SUVs during the 1990s and the similarly meteoric rise of Crossover SUVs since 1996 when the first crossovers – the Honda CR-V and Toyota RAV4 – were introduced. Of course, defining SUV categories is getting murkier and murkier. VehicleVoice (http://www.vehiclevoice.com) and AutoPacific (http://www.autopacific.com) have used the “at-a-glance” rule to define SUVs. If you can, at-a-glance, tell that a vehicle is an SUV, then by golly it is an SUV. In this way you are not confused about whether it is car-based or truck-based. (Pipas contends that only about 70% of Crossover SUVs meet this at-a-glance requirement with 30% easily confused as cars, hatchbacks, or wagons.)
Traditional SUV 2007 Cadillac Escalade – Category Expected to Decline as a Percentage of Overall SUV Universe
The auto industry thinks differently and often gets caught up in definition problems. They have variously called car-based SUVs “hybrids” (a term since adopted by gasoline-electric ‘hybrid’ powerplants) or “crossovers”. In our research, we have found that folks really have not yet adopted the crossover term and still like to refer to SUVs as SUVs. But enough about splitting hairs about what is a crossover and what is not.
An article in the Saturday, November 19, 2005 Wall Street Journal projects that Toyota may overtake General Motors as the highest selling carmaker in 2006.
While Toyota (Toyota, Lexus, Scion) may not sell more than GM (Chevrolet, Pontiac, GMC, Buick, Cadillac, Hummer, Saturn, Saab) in the United States, it may sell more worldwide. Toyota is concentrating much of its sales expansion in North America where it is pulling sales from General Motors and Ford. GM is bolstering production capacity in China and South America where it sees room for growth where Toyota is not yet strong.
The Wall Street Journal article is one of many recent media reports confirming the results of VehicleVoice research and forecasts by AutoPacific. VehicleVoice research shows a continuing deterioration in General Motors’ (and Ford and Chrysler traditional brands) market share in the United States under the concentrated onslaught of the Japanese Big Three. AutoPacific’s forecast of United States sales shows Toyota, Honda and Nissan increasing market share by adding new assembly capacity and models.
General Motors is getting ready to launch its new GMT900 SUVs. This lineup includes the Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, GMC Yukon XL, Cadillac Escalade and Cadillac Escalade ESV. The shorter versions will be launched in the 1st Quarter 2006 as 2007 model year vehicles. The long wheelbase Suburban, et. al. will be launched in March or April.
Early reviews of the GMT900 provided in Burbank, California (GM’s California Design Studio) and Warren, Michigan (GM’s Design HQ) prove that the GMT900s are an excellent piece of work. While they do not look too much different from their predecessors, they have wider front and rear track and larger tires and wheels. This gives the GM SUVs a very purposeful stance avoiding the undertired appearance some past GM vehicles have had. At the same time, the more prominent tires and wheels actually make the vehicles look slightly smaller even though they aren’t.
Lack of Fold Flat 3rd Row a Major Omission
To keep these comments focused on what we want to observe, lets change the order a bit.
The most glaring omission in the GMT900 SUVs is the lack of a 3rd row seat that folds flat into the floor like the Ford Expedition and Lincoln Navigator and now the Ford Explorer and Mercury Mountaineer. The key to the Ford system is the use of an independent rear suspension that allows the rear floor to be dropped several inches providing space for the seat to fold flat. GM’s GMT900 management said they “couldn’t break Ford’s code” and it appeared that they were thinking Ford adopted IRS more for ride and handling than for interior package. WRONG. The key all along was the rear seat package.
The resulting seating package is very similar to the GMT800 SUVs. The seats, when folded, rest on top of the floor obstructing the load area of the vehicle.
GM also claimed their research showed that SUV buyers wanted a power folding 2nd row seat more than they wanted a flat folding, power operated 3rd row seat. According to ex-GM researchers who shall remain anonymous, GM’s research actually showed a strong preference for “a seat like in the Expedition in a body like the Suburban”. The real reason, of course, is investment. The expenditures for the combination of IRS and fold flat 3rd row seat has variously been quoted as $165 million or $300 million. Either number would cause a product planner to pause and clearly these very important features were pipped – not easily.