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Crossover SUVs to Outsell Traditional SUVs in 2006

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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.)
Escalade Blog.jpg 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.


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Dear Valued Hybrid Customer…

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This editorial appeared in the Wall Street Journal on Wednesday, November 30, 2005. Written tongue-in-cheek, Jenkins pokes fun at the hype hybrids have achieved to date. Indeed, his commentary reflects some of the perceptions gathered in our September, 2005 VehicleVoice (http://vehiclevoice.com) Hybrid Study.

Dear Valued Hybrid Customer…

Business World/by Holman W. Jenkins, Jr.
We at the Toyota Motor Corporation are writing to address certain misconceptions that have arisen about your Toyota Prius model, which we are proud to note is driven by many celebriies, including Prince Charles and HBO’s Larry David.
Prius blog.jpg
Our pioneering gasoline-electric hybrid, introduced in 1999, has become an object of adoration to the world’s enlightened car buyers. Our competitors, including American’s Big Three, are rushing out hybrid vehicles of their own. Unconfirmed media reports say that we at Toyota intend to double our hybrid output to 500,000 vehicles next year. Along with other members of the auto industry, we will be lobbying for tax breaks and HOV privileges for hybrid vehicles.


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Kiplinger's Best New Cars – December 2005

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Kiplinger’s Personal Finance magazine (December 2005) selects the Best New Cars in several price classes. Their selections are as follows:
Best New Car under $18,000: 2006 Honda Civic. “With its sleek, aerodynamic look, the new Civic gets more power without sacrificing fuel efficiency. Six airbags are now standard equipment.” [Best in Class: Volkswagen New Beetle]
Best New Car – $18,000 – $23,000: 2006 Hyundai Sonata. “It has classy good looks and is surprisingly refined for around $20,000. It also has the most standard safety equipment in its class.”

Best New Car – $23,000 – $30,000: 2006 Dodge Charger R/T.
“Under the hood it’s a whole lot like the Chrysler 300C. But it has a sportier suspension, a lower sticker price and the DNA of a Daytona winner.” [Best in Class: Mini Cooper S Convertible]
Best New Car – $30,000 – $45,000: 2006 Buick Lucerne CXS. “Buick’s large-sedan replacement for the LeSabre offers V6 and V8 power, heated and cooled seats, and remote start. Front bench seats are an option.” [Best in Class: Acura TL]
Best New Car – $45,000 and Over: 2006 Mercedes-Benz CLS55 AMG. “From the performance division of Mercedes-Benz comes a new class with style and luxury to spare. It smothly powers from zero to 60 mph in 4.5 seconds.” [Best in Class: Lexus LS430]
Best New Sports Car: 2006 Mazda (Miata) MX-5. “The best-selling roadster gets a thoughtful redesign. Now there is more zoom as well as more room – enough to fit a supermarket haul in the trunk.” [Best in Class: Chevrolet Corvette]
Best New SUV: 2006 Range Rover Sport. “Think of it as a rugged sport sedan, equally at home on city seats or on the savanna.” [Best in Class: Jeep Grand Cherokee Overland]
Best New Crossover Vehicle: 2006 Toyota Highlander Hybrid. “This hybrid utility vehicle gets 33mpg in the city, but it’s no slouch when accelerating. The electric motors give it more power than the V6 gas model.” [Best in Class: Honda Pilot]


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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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