SUV:

New CX-9 Is Key In Mazda’s Attempt To Be Premium Brand

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This article appeared in Forbes Auto:  May 23, 2016

Photo Credit: George Peterson

Photo Credit: George Peterson

Mazda has always been a brand different from most. It built its image on rotary engines that were fun to drive, but tough to make. Challenges from emissions and fuel economy regulations doomed the rotary early in the 21st century. Production ceased in 2012 with the demise of the Mazda RX-8 sports car. Mazda’s gorgeous Vision R coupe shown at the 2015 Tokyo Motor Show demonstrates Mazda hasn’t given up on the rotary, but admits only a small group of dedicated engineers are presently working on it. But the rotary engine is just part of the Mazda story.

The Ford Days to Independence  From 1979 through 2009, Ford Motor had an increasing equity stake in Mazda Motor. Starting with 7% stake in 1979, Ford increased its position in Mazda until it had effective control with 33.3% of the company. Mazda and Ford teamed up on several car platforms where Mazda’s design expertise opened the eyes of Ford engineers to new more efficient techniques.

As the Great Recession deepened and Ford was struggling for liquidity, Ford divested its shares in Mazda and the company became independent in 2009. The result was a stand-alone brand with good products, but low volumes. In 2011, Mazda raised $1.9 billion to guarantee its future viability and develop its SkyActiv platform now underpinning its cars and crossover SUVs. With the introduction of the Mazda CX-9 crossover SUV in mid-2016, the transition to SkyActiv is complete.

For Mazda’s 2016 Fiscal Year, the company sold a bit over 1.5 million vehicles world wide and had a net income of ¥134 billion (~$1 billion). Prospects are even better going forward as Mazda entered a technology sharing agreement with Toyota in May 2015.

Repositioning “Zoom Zoom” to “Driving Matters”  Now the stage is set for Mazda to reposition itself. In the United States, Mazda wants to be perceived as an upscale mainstream brand similar to Acura. Acura has always seemed like an upscale domestic brand (and not particularly successful), so this positioning may make sense.

One of the first things Mazda has done to facilitate this change is change its advertising tag line from “Zoom Zoom” to “Driving Matters.” “Zoom Zoom” has been around seemingly forever, since about 2000. At first, Mazda’s products did not live up to the “Zoom Zoom” tag line, so now that they do, the tag line is changed to a more mature “Driving Matters”. “Zoom Zoom” is still there, but in a secondary position to “Driving Matters”.

“Driving Matters” fits with the attitude that people who buy a Mazda product are more enthusiastic about driving than buyers of most other mainstream brands. Mazda does not want to sell an appliance – transportation from point A to point B – they want to sell a vehicle with an active, sporty driving experience that their owners embrace.

Mazda Vehicles Deliver More of a Premium Ambiance  Along with repositioning the message, Mazda’s products have been achieving higher transaction prices at their dealers. Much of this results from selling a richer mix of vehicles with about 50% of the CX-5 being the upper middle Grand Touring model and the CX-9 having a projected 40% being the Grand Touring model (then combined with the Touring model, Touring plus Grand Touring are expected to be 70% of the CX-9 mix). No longer wanting to be a “cheap and cheerful” brand, Mazda will not be the cheapest in any segment. It wants to be best. Simply, the brand is chasing a better quality of business.


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“Trucks” to Continue to Outsell Cars – XSUV Segment

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500 wide Car Truck Sales 1987-2021500 wide Car Truck Mix 1987-2021AutoPacific, an automotive specialist research and product planning consultancy, forecasts that trucks, including XSUVs will be about 60% of the market for the foreseeable future.  In fact, reading the crystal ball for the next five years, this percentage of the mix may be low.  The charts above detail how cars and truck sales and market penetration have evolved since 1987 and the forecast for the future.

The hottest product segment in the American light vehicle market is the crossover SUV (XSUV).  A crossover SUV can be as large as a Chevrolet Traverse or as small as a Chevrolet Trax.  There are dozens of XSUVs in between.  And there will be more.

The XSUV segment has become so hot because this type of vehicle corrects the criticisms buyers had of traditional SUVs which sold very well, but were not optimal.  Buyers wanted products that were not hard-core off-roaders, but more civilized and city friendly.  The SUV market exploded in the early 1990s with the introduction of the Ford Explorer and Jeep Grand Cherokee.  It wasn’t until 1996 that the crossover SUV began slipping into the marketplace.  First the Toyota RAV4 and Honda CR-V appeared.  They were followed by the luxury crossover RX300.  Clearly the manufacturers were listening and reacting.

Here are just a few of the things we know about the evolution of the SUV market over the next five years…

Cadillac  Cadillac states that it has too few XSUVs (one, the upcoming XT5) and wants to add two or three more to its lineup while adding one more car as a range topper between now and 2020.

Buick  Buick is adding the small Envision XSUV to its lineup this Spring.  Envision is assembled in China.

FCA Drops Cars to Add XSUV and Pickup Capacity  Fiat Chrysler Automobiles is dropping its Chrysler 200 and Dodge Dart in favor of more capacity for XSUVs and pickups.  The Ram pickup will take over the FCA Sterling Heights, Michigan Plant when the Chrysler 200 is dropped.  FCA’s huge Belvidere, Ilinois plant will be populated by XSUVs when the Jeep Compass and Patriot plus the Dodge Dart fade away.

Toyota Pushing RAV4  Toyota Motor Sales has stated that they would not be surprised if the RAV4 XSUV overtook the Camry mid-size car as its best selling product.  Camry was the best selling car in the USA in 2015.

Lexus will add a 3-row XSUV above the RX350 in the next few years.500 wide SUV XSUV Sales 1987-2021500 wide SUV XSUV Mix of SUV 1987-2021

 

The charts above show the impact of crossover SUVs on the light truck market.  Huge volume increase and market share increase.

Hyundai Aggressively Adding XSUV Capacity  Hyundai is replacing 50,000 units of car capacity in its Montgomery, Alabama assembly plant with the Santa Fe Sport.  That drops capacity for the Hyundai Sonata and Elantra from 400,000 to 350,000 units per year.  Hyundai admits that they underestimated the demand for XSUVs years ago.  This capacity move reacts to market demand and dealer pressure to get Hyundai dealers more XSUVs that are easier to sell and require less incentives and discounting.

Hyundai will add 45,000 units to its Tucson compact XSUV volume this year.  Built in South Korea, Tucson has been limited because it is popular around the world and the vehicle was capacity constrained.

Hyundai also recognizes there is a hole at the bottom of their XSUV lineup and are adding a sub-compact B-Segment XSUV to fill that hole.  There is a possibility that a smaller A-Segment XSUV will replace the Hyundai Accent hatchback.


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2011 Cadillac Escalade: What Makes for an Award Winner?

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AutoPacific, as a well-respected automotive research firm, uses the voice of real consumers like you, the VehicleVoice panel member, to help automakers make the best possible cars and trucks.  The data that we collect also helps identify what vehicles are most satisfying to their owners, as well as being the closest to their owners’ ideals.  Hence, each year we publish our annual list of AutoPacific Vehicle Satisfaction Award (VSA) winners (most satisfying vehicles in their segments, as rated by owners) and AutoPacific Ideal Vehicle Award (IVA) winners (closest to their owners’ ideals).  These awards highlight what the best vehicles are doing right as reported by their owners, and can serve as a tool to you as the consumer in finding a vehicle that you will be extremely happy with for many years.  Despite the vitriolic rants of the angry and ill-informed, we simply report on what you as the consumer tell us.


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2012 Jeep Wrangler: New Heart, And Capable as Ever.

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The Jeep Wrangler is the spiritual heart and soul of the Jeep lineup.  It is a true icon, recognized far beyond automotive circles.  Its mere existence lends credibility to less off-road capable brandmates ilke Patriot and Compass.  After all, it can be argued that Wrangler is THE original off-road SUV.  With its heritage hearkening back to the Second World War, performing its duties heroically on battlefields in both the Pacific and European theaters, the Wrangler has off-road credibility arguably matched by no one.


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2013 Toyota RAV4 EV Prototype: A Quick Spin

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I’m at Toyota’s third Sustainable Mobility Seminar at the moment, a deep dive into the issues surrounding sustainable motoring featuring excellent speakers from industry and academia.  I’ll admit, my head is still spinning from all the education I’ve received over the last twenty-four hours, but there’s one part of the event I feel compelled to write about – right now.  All of us in attendance got the media’s very first chance to drive fully working prototypes of Toyota’s upcoming fully electric RAV4 EV.  As AutoPacific’s resident treehugger, I couldn’t wait to get behind the wheel of Toyota’s upcoming electric SUV.


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2011 Nissan Juke: Here’s to the Real SE-R Successor

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Long ago, back in 1991, Nissan launched what many thought of as the spiritual successor to the BMW 2002: the Nissan Sentra SE-R.  It was a lightweight and tossable compact car that was inexpensive and an absolute blast to drive.  Since then, Nissan has kept the SE-R name alive in subsequent generations of Sentra, but each one has gotten less and less thrilling.

Fast forward to 2011.  Around the world, automakers are bringing small and sporty crossovers to the marketplace, addressing younger and more style-conscious consumers’ need for entry level vehicles with space and standout style.  Nissan has jumped into the fray with the Juke, a product designed first and foremost for the European market.  The U.S., which seems to prefer its crossover products big and bulky, is a secondary market.  However, given that today’s younger Americans are expressive, enjoy technology, often accept miniaturized products, and value standout design, Juke has found its way across the pond nonetheless.


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2011 Cadillac SRX: A Star in an Increasingly Crowded Class

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Ever since the Lexus RX300 first hit the streets thirteen (!) years ago, the sensibly-sized luxury crossover has been hugely desirable among the upwardly mobile.  Over time, the segment has grown by leaps and bounds, not just in terms of sales but more recently in terms of the sheer number of players.  Over the past couple years, the Europeans joined the fray with the Mercedes-Benz GLK, Audi Q5, and Volvo XC60.  And last year, Cadillac ditched the slow-selling and somewhat cumbersome three-row SRX with the smaller and more pert SRX seen here.  Wait a minute, don’t we Americans always want bigger?  What’s the deal here?


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2010 Hyundai Tucson: The Urban Cruiser?

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I’m rarely one to toot my own horn, but I’ll go ahead and get this out of the way: there’s a bit of me in the brand-new 2010 Hyundai Tucson. Once upon a time, not that long ago, I was a product planner at Hyundai who was tasked with finding and developing a new concept direction for the second generation Tucson. The first Tucson, which debuted for the 2005 model year, was a decent if uninspiring small crossover SUV, and Hyundai really wanted to hit the second generation out of the park.


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2010 Dodge Nitro Wins AutoPacific Vehicle Satisfaction Award for Mid-Size SUV

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The Dodge Nitro is top rated by its owners in the Mid-Size Sport Utility segment. Characteristics that were particularly highly rated include overall seating capacity, rear seat comfort, interior storage compartments and audio system performance.
This personality-packed Dodge is a little larger than its Jeep Liberty counterpart and customers clearly appreciate the larger interior that results. Dodge has been applying lessons learned from the minivan business to all segments, with proof it matters here: Nitro’s clever storage options contributed to its win. The 2010 VSA win follows Nitro winning the 2009 Owner Recommendation Award.
For a complete list of winners and description of the Awards, click here.


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2010 Honda Accord Crosstour: Modern Wagon or New-Style CUV?

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Has Honda developed yet another blended vehicle–or just a big hatchback? On sale since November 2009, the Accord Crosstour aims to be a modern and stylish CUV. To our eyes, it is more like a hatchback on steroids. Honda’s not the only maker exploring this shape, as it is not unlike the idea behind the BMW 5-Series GT or Toyota’s Venza or Acura’s ZDX (the larger and more expensive ZDX is not a Crosstour in different metal). Accord Crosstour offers everything you expect from the Accord, wrapped in a new shape. Is that enough?
bl_Hon_10_Crosstour_ext_a.jpg
While beauty is in the eye of the beholder, most people we’ve talked to have not found beauty the shape of the Crosstour. A love-it-or-hate-it shape can be great for image and buzz. But it seems to be difficult to find the love-it Crosstour crowd, at least relative to styling.


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