Category Archive:

SUV Jihad Continues as SUV Segment Atomizes

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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.

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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.


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2007MY Chevy Suburban Continues Value Pricing

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.

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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.


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Chevrolet Avalanche – New Look and New Engines for Chevy's Jack-of-all-Trades

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Latest Avalanche Matures
At the 2006 Chicago Auto Show, Chevrolet took the wraps off the second-generation Avalanche. The Avalanche introduction was overshadowed by Toyota’s much-anticipated Tundra launch, but as Chevrolet sold about 379,500 units between its spring 2001 launch and December 2005, the truck is certainly important in its own right. The latest Avalanche goes on sale in the second quarter of 2006.
We have not had the opportunity to drive the updated Tahoe, GMC Yukon, or Cadillac Escalade, but initial accounts from our friends in the industry are that the new products are terrific to drive. Expectations are high for an equally enthusiastic response to the Avalanche.

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Avalanche gets the same updates its sibling SUVs (Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and all three Cadillac Escalade products) see for 2007 model year, which GM promises improve ride and handling, improved fuel economy from more powerful engines, and a more refined interior. The first Avalanche took on a face more like the Silverado pickup truck, but this second-generation aligns itself with the SUVs by taking on a face more similar to the Tahoe.


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Motorweek 2006 Driver's Choice Awards

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Motorweek, the PBS-oriented car show, announced the winners of its 2006 Driver’s Choice Awards at the 2006 Chicago Auto Show. It will be interesting to see how these winners correspond to the owner awards from VehicleVoice and AutoPacific. The surveys for the annual AutoPacific Vehicle Satisfaction Award are in the field during the 1st Quarter 2006 and winners will be announced in early May.
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Their winners include:
Best of the Year: Honda Civic
Best Small Car: Honda Civic
Best Family Sedan: Hyundai Sonata
Best Minivan: Honda Odyssey
Best Convertible: Pontiac Solstice
Best Luxury Sedan: Infiniti M-Series
Best Sports Sedan: BMW 3-Series
Best Performance Car: Ford Mustang
Best Small Sport Utility Vehicle: Toyota RAV4 (guess they didn’t measure it… Mid-Size SUV now)
Best Family Sport Utility Vehicle: Ford Explorer and Mercury Mountaineer
Best Pickup Truck: Ford F-150
Best Eco-Friendly: Toyota Highlander Hybrid
Best Dream Machine: Chevrolet Corvette ZO6, Dodge Viper SRT10 Coupe, Ferrari F430
Special Category: Most Jane Car: BMW 3-Series


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2007 Ford Expedition and Expedition EL

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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.

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VehicleVoice 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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Car & Driver – 10Best Cars 2006

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Every year, Car & Driver, one of the high circulation car enthusiast magazines in the United States, publishes the results of its 10Best awards. The 2006 10Best Cars awards were released in the January 2006 issue of Car & Driver and you can find them on the C&D website at (http://www.caranddriver.com/article.asp?section_id=33&article_id=10354)
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Not having looked at the winners prior to writing this blog, VehicleVoice (http://www.vehiclevoice.com) staff conjectured about what types of cars Car & Driver would select.
We knew that, being a buff book, they’d select cars that appealed to the enthusiast, maybe throw one or two mundane winners into the mix, be heavy on import marques and generally favor smaller cars. Lets see how accurate we were?
BEST SPORTS SEDAN – Acura TSX
BEST SPORT COMPACT- Audi A3
BEST LUXURY SPORTS SEDAN – BMW 3-Series
BEST PERFORMANCE CAR – Chevrolet Corvette
BEST FULL SIZE SEDAN – Chrysler 300
BEST MUSCLE CAR – Ford Mustang GT
BEST FAMILY SEDAN – Honda Accord
BEST ROADSTER – Mazda MX-5 (Miata)
BEST SPORTS COUPE – Mazda RX-8
BEST LUXURY SPORTS CAR – Porsche Boxster
So, lets see, seven are import brands, 3 of the imports are from Germany and four are from Japan. Mazda picks up two wins with its sports cars.


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NIIHS Announces Safety Winners

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The National Insurance Institute of Highway Safety announced its rankings of the ten safest 2006 model year cars on Sunday December 4, 2005. To make the ratings game easier to understand, NIIHS has developed a gold silver rating scheme. Cars receiving a GOLD rating have “Good” ratings for frontal impact, side impact and head restraints. Cars receiving a SILVER rating have “Good” ratings for frontal impact and side impacts, “Acceptable” for head restraints.
One of the key objectives for this new combined rating scheme is to push manufacturers in a subtle way towards stronger performances in all aspects of the rating game.
The winners are:
GOLD

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Large Cars: Ford Five Hundred, Mercury Montego
Mid-Size Cars: Saab 9-3, Subaru Legacy
Small Car: Honda Civic 4-door
SILVER
Large Cars: Audi A6
Mid-Size Cars: Audi A3, Audi A4, Chevrolet Malibu with side airbags, Volkswagen Jetta, Volkswagen Passat


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Chevrolet Camaro & Dodge Challenger – It's All About Street Cred

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DETROIT’S MUSCLE-CAR REVIVAL: ALL ABOUT STREET CRED
The latest Mustang is a success in the image ranks and in the buff books. Its sales success has surprised even Ford and production capacity has been increased so they can sell even more. The other historic Detroit brands will revisit the rear-wheel-drive coupe idea at the 2006 North American International Motor Show in Detroit. The first announced concept is the Dodge Challenger shown below. Still under wraps is a new generation Chevrolet Camaro.
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Though Ford has consistently offered a Mustang since 1964 and kept it alive (even if some iterations were less memorable than others), both GM and Chrysler Group abandoned the product formula. Mustang has the edge and success at GM, Chrysler Group, or for any other contenders requires that they establish modern-day credibility with the consumer.
In the heart of most car product planners at American car companies beats a rear-wheel-drive V8-powered coupe or convertible, going much further back than the muscle-car era that gets so much attention these days. As a result, whether timing is by design or by reaction, Dodge and Chevrolet are expected to show concepts on the muscle-car theme at the 2006 Detroit show this January.


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Will Chevrolet Camaro Return? Camaro Concept at Detroit

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Detroit Show Car Hints at Potential Camaro Revival
Ever since the Chevrolet Camaro was dropped for 2002 model year, die-hard Camaro fans have insisted that it will return, regardless of the business case or lack of an approved programs. Many “Camaro” photosketches found their way from someone’s daydream post to other sites labeled as “the NEXT CAMARO.” There are certainly those within General Motors who would like to revive the nameplate, feeding the fire.
The 2006 concept is said by Automotive News to be based on the Kappa platform and due for production as a 2009MY vehicle. Other sources, however, indicate that the business plan has not been approved, and it remains to be seen if the project arrives on market. The Kappa platform is the basis for the Pontiac Solstice and Saturn Sky sports cars. There was also a Chevrolet Nomad concept car a few years ago that was absolutely gorgeous.


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Toyota to Overtake GM as Top Carmaker

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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.


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