Why America Is Falling Back In Love With SUVs

Why America Is Falling Back In Love With SUVs


Truck and SUV sales have steadily increased since the end of the Great Recession. Passenger cars, on the other hand, have been declining since 2014. In fact, 2013 saw thehighest U.S. truck sales since 2005. This big spike in sales is forcing automakers to make big changes.
Take General Motors, for example. GM announced in November 2018 that
it was stopping production on six of its sedan models. Instead, it’s going to focus on making more pickup trucks and SUVs. General Motors is going to close down at least three of its assembly plants
by the end of next year, cutting nearly 15000 jobs. You’re looking at a company here that is
not waiting until it is forced to close plants. It’s trying to get ahead of the curve a
little bit because the sales of cars is just not there. GM is late to the party. Ford and Chrysler have already done that. That’s Michael Ward, an auto analyst at Williams Trading. He’s been following the auto industry for over 35 years. I think GM is a little bit late to it in part because
it had strong positions in some of those vehicles and long legacies like at Lordstown.
It’s been a good place for them for decades. The three plants that GM is closing all produce passenger sedans. The Lordstown, Ohio plant manufactured the Chevy Cruze. Oshawa, Ontario primarily produced the Chevy Impala. and the Detroit, Hamtramck location
turned out the Chevy Volt, Buick LaCrosse and Cadillac CT6. Personally,I still think they’re gonna end
up keeping him traffic at least open. They’ll find a vehicle that they can produce at Hamtramck. Lordstown is another issue. But Lordstown is a very big plant. At its peak it produced 400,000 units. Again, one of the hardest things for the auto industry to find is a talented workforce. They do have a talented workforce in the Lordstown area.
So I wouldn’t be shocked if they found a solution for Lordstown, as well. Ford, the second largest automaker in the U.S., is also gearing up for more SUV production. Ford’s profits took a dip in 2017. Some experts say the company wasn’t meeting demand for SUVs and crossovers. But it’s not just American companies jumping
on the trend. Even luxury carmakers like Ferrari, Jaguar and Maserati have been getting into the SUV business. So why are American consumers falling in love with bigger cars? It comes down to three things: Better mileage, higher profit, and consumer need. Some experts think low gas prices make SUVs and trucks more affordable. On top of the falling prices, these SUVs aren’t the
gas guzzling behemoths of the early 2000s (Male announcer)
Built Ford Tough (Male announcer)
The rules have changed (Male announcer) Ford Expedition. The only way to get there The typical millennial spends more at Starbucks in a given year than the average consumer spends on gasoline in their car. It gets a lot of headlines with gasoline, but at the end of the day, people look at spending one or two hundred dollars a month on gasoline It really doesn’t change much depending on the vehicle you have. Chevy Suburban today gets 20 miles to the gallon. It seems that one thing that hasn’t changed
since the early 2000s is that Americans really like having a large family vehicle. Most consumers buy a vehicle for their needs
and whether it’s to move a family around, move goods around and they balance out
the costs of operating, including fuel costs. The growing demand for trucks seems like a
gift to automakers at least in the short term. SUVs, trucks and crossovers have proven
much more profitable than electric and hybrid vehicles. The average price of a car in
the United States what consumers spend is about $25,000 For a truck, which would include the sport utility vehicles,
it’s $12,000 higher. It’s $37,000. Companies may be closing plants and laying
off workers, but that doesn’t mean the auto industry is in trouble. I’ve followed the auto industry for 35 years plus, almost 40, and it’s the best shape I’ve seen the industry ever The trick for General Motors is to go beyond. To think what’s next? What do consumers want in those sport utility? How do you differentiate it? How do you get a premium price? Over the last decade you’ve seen the auto industry and
the technology industry coming together. There’s been a convergence. 2019 will be the year that we see the best biggest example of that convergence. You’re going to Uber go public., Lyft go public. GM might spin off its cruise automation unit. We could see Waymo doing something. That’s almost a half a
trillion dollars in market cap potential from those four companies alone America’s love affair with trucks and SUVs
isn’t showing any sign of dying down That means an all-electric truck might be here sooner than we think.

100 comments

  1. American cars are huge gas guzzlers and gas is much cheaper in the US than elsewhere. So it's cheaper to maintain big cars in the US. Try and drive and maintain a RAM or an F-150 elsewhere and talk to me lol

  2. electric vehicles in the future will shrink the small car big trucks cost difference even more making small cars in the future a far more niche purchase.

  3. I guess the only pro is the weather can be god awful where I live. In the winter, just driving to work or school is scary at times in my little Ford Focus.

  4. First of all It’s part of American culture to drive a pick up truck, it’s like having a horse in old days.

  5. The only reason SUVs and trucks are selling better right now it's because of dumb people texting and driving and just not knowing how to drive, they don't feel safe on a small car

  6. I see mfs that can verly afford rent with a 50,000 dollar SUV making fun of my old 06 Nissan. Not realizing my car is actually mine.

  7. Here's why we crave these things, they're big, they're powerful, they can haul a lot, and they make us feel stronger.

  8. Americans are buying trucks and SUVs coz of the extreme marketing of these vehicles.
    Trucks and suvs have high center of gravity, less aerodynamic, bad fuel consumption and everything is expensive.
    I see everyday big SUVs with 1 person in it. We as humans what to impress people we don't know.
    I'm a multi millionaire and I drive a 2011 Prius with 200000+ miles. Still get 50 MPG and I think 50 MPG is too low. That's the only reason in switching to an electric sedan

  9. There will be an economic downturn then they will be behind on affordable, efficient cars then need another bailout.

  10. sporty SUVs are the best. they are quick, they drive like a car, they can fit normal sized people inside, the are higher off the ground so you dont have to worry about scraping the bottom of it and finally, they have enough room for all your luggage. there is absolutely no reason to buy a car.

  11. Big SUVs = More metal mining, more fuel usage, More expensive tyres

    …So you can fit your fat ass in rhe seat and a big gulp in the cup-holder

  12. Drive a big powerful car, but the driver is a fat blob. What message are you trying to convey? Downsize the car and your waist.

  13. Americans are falling in love with trucks and SUVs partly because of higher profits for the car makers? Rephrase please

  14. Y Americans are falling back in love with the SUV ? Answer…. too many pot holes 🕳 on the roadways a car can not survive the American road way …answer #2….. lots of Americans can’t fit into a car 🚗…. mass +pothole = a messed up car 🚙

  15. Well half the population is fat and obese so they need space regular car are not enough🤷🏾‍♂️

  16. They can.fool people to do what everyone else does so easy look at Apple plus when gas prices hit the roof they gonna dump these big vehicles again like 2007

  17. I was happy with the old full size station wagon , you could tow with them, seat 9 people easily, plenty of rear cargo room when you lay the rear seat down, and best of all they were affordable .

  18. I'm 6'2" , I cannot get in and out of a modern car with hitting my head on the doorframe. I do get in and out of my Grand Marquis just fine. Think about it Detroit.

  19. The premise of modern cars getting better mpg is incorrect when looking at the national fleet.

    Go back to 1971 and pick the first 100 vehicles that pass the stop sign at the end of your steert.

    Go to 2019 and pick the first 100 cars that go past the same house.

    The over all avg mpg would be very similar.

    Probably in the low teens. 12-14 mpg.

    1971
    Ford LTD, Buick Century, Ford LTD, Toyota Corolla, Cadillac Fleetwood, Chrysler Newport, Oldsmobile 98, Ford F100, Dodge Dart, Pontiac Bonneville, Chevrolet Kingsman wagon.

    2019
    Chevrolet Suburan, F150, F150, F150, Tahoe, Ram, Ram, E150 van, Honda pilot, Subaru Ascent, Yukon Denali, Cadillac Escalade, F150, Accord, Jeep Wrangler, Nissan Armada, Tundra, Toyota Sequoia, Town and Country.

    Look at the real world mpg of those vehicles and you'll see the average vehicle is still getting what they did back in 1971.

    Go ahead and check your trip computer on the dash in your Toyota Sequoia, yes 9.5 mpg. Look at your dash computer on your 2019 Suburban, yes 10.7mpg of idling in the school pick up line and all that city traffic.

    Look at your Honda Odyssey. 13.6 mpg.

    The EPA and CARB has forced people out of cars and into gas guzzling Trucks and SUVs. They were unwilling to compromise and meet somewhere in the middle to keep people in more efficient cars.

    No head room due to even better aerodynamics needed to offset the poor mpg of trucks and SUVs, no towing abilities due to ultra flimsy suspensions and weak automatic transmissions, no safety when hit by a truck bc of the ultralight weight of the car to get the corporate average fuel economy numbers up, no trunk space, no spare tire to save weight, on and on + they literally are on the ground to help with mpg and under car air turbulence drag mitigation making most new cars difficult to get into and out of. Look at the 1950s cars and how comfortable they were. You could tow 10,000 lbs, monster trunks, tons of headroom and they were not literally 5.8 inches off the ground.

    The heaviest of the pickup trucks are totally exempt from any fuel economy standards like the Ford F250 and a Dodge 2500.

    If the EPA and the California Air Resource Board truly wants to see people driving more efficient vehicles, then they need to realize the problems that they caused and start holding the heavier vehicles to the same standards that they held the Cars to.

    One solution would be the price for gasoline that you pay at the pump would be based on what you drive. If you drive a Toyota Sequoia, then your gas would be $12 a gallon and if you drive a Toyota Prius your gas would be $0.52 a gallon.

    If you drive a Ford F-150, your gas would be $11.81 a gallon and if you drive a Ford Fusion your gas would be a $1.21/gal etc.

    The higher prices vehicles off set the gas cost for the lightweight cars.

    Of course once a car is 15 years old, It'd be exempt and pay the market price for gasoline and this would try to be a pathway for this new environmentally positive incentive Equity gasoline pricing to not disproportionately hurt the poor.

    I think everyone wants to see the environment protected and our natural resources utilized with proper and conservative stewardship.

    We've fostered a moral hazard in our own driveways that's killing the environment.

    Also tax policy makes it extremely beneficial for people to buy heavy Vehicles versus a fuel economy car.

    The tax write off on a 6,000-lb + GVWR truck or SUV is over $100,000 per year.

    The tax write off on a sedan type car was $7,800 over five years total, but I'm sure this number has increased in the past few years.

    If most everyone drove cars that got 25-30 mpg in real world everyday driving, just think about how much better off we'd all be as a county by keeping more of our money in the home vs giving it to the oil companies.

    Good meaning environmental policies that have backfired unfortunately. It's 2019 and everyone is still in 13mpg vehicles, just like 1971.

  20. Ferrari does not make SUVs and does not plan on doing so any time soon. I think this video mean Lamborghini, as in the Urus

  21. lol why cant americans just buy more station wagons like the Europeans do like the Audi A4 all road instead of a Q5

  22. Only in the U.S are SUVs popular. In other countries people prefer smaller cars since the roads are different, more smaller and less space. The reason why cars like the Toyota Camry and Corolla are the best selling in the word. I don’t think you will ever see a Chevy Tahoe in Japan.

  23. In Africa a Landcruiser 200 series V8 is considered more premium than an S class model. Or of a higher status.

  24. SUVS now 40k to 100k

    Most people who get big SUVs or pickups dont even use them for their main purpose

    Which means people who buy SUVs that sit more than 8 only have family's of four and the rest of seats barely ever used. So they wasted thousands for SUV when they could've gotten a sedan or crossover. Pickup truck owners are just people would need something prove size wise. Pickup trucks I use for hauling and for picking up. Yet some pickup drivers barely use it for that which is a waste of 30k to 80k. In my opinion public transportation should be a bigger then in USA because people in USA are spending way too much for cars even more than a house which is alittle less than 100k. Public transportation needs to be improved in USA. 1. Electric powered buses, taxes, metro trams and bigger better uber and Lyft systems. Another thing American pay millions dollars in Car payments and thousands of dollars in maintenance fees. American's grand independence is just people over spending on the wrong things.

    Do you think Americans should spend millions on buying pickups, SUVs, sedans, crossovers, motorcycles or should they work harder on getting a decent home. Apartments start around 500 dollars a month that's 6,000 dollars a year which means you can live at that apartment for ten years with the same amount money a person puts into a infinity q80 platinum

  25. Nothing wrong with owning a gas guzzler! Every vehicle doesn’t need to be fuel efficient. Many people have more than one vehicle, a Dailey driver, that gets great mileage and the vehicle they actually like.

  26. Americans are getting older on average and don’t want to climb in and out of sedans. It’s configuration of the vehicle that’s attractive.

  27. Hahahah sounds like a youtube channel video, not a nationwide broadcasting company… At least hire ColdFusion voice

  28. Their "need", is to show off how affluent they are. Even if it is a lie. It is called conspicuous consumption and Americans have it by the bucket load. Mind you, in the UK I've seen houses with paint chipping off the facings and windows, yet there is still a brand new Mercedes E class squeezed into the tiny little drive.

    If Small cars had the same levels of comfort and style they would be bought more. Nothing says "I haven't made it" like flicking the top of the dashboard and breaking a knuckle.

    Say 20mpg to a European and he'd have have a heart attack. We want, nay need, 70mpg + because gas is so outrageously expensive, and we don't get the benefits when the price of crude goes down. We just pay more when it goes up.

  29. Americans love big vehicles because they're fat. SUVs/CUV's give a false sense of protection because they're bigger, and Americans, generally, don't care too much about handling dynamics.

  30. Lol try having a 6 person family driving around a camry we currently own four cars
    2019 Ram 1500 laramie 6 seats
    2014 Ram 1500 slt 6 seats
    2012 dodge grand caravan 7 seats
    2011 toyota camry 5 seats
    And 3 atvs 1 side by side 1 boat 1 snowmobile 6 bikes 2 trailers and a few properties with cabins in northern michigan which is only accessible by trucks also we make a road trip to Colorado every year four hunting so we need a truck to get up the mountains full of 3 ft deep snow

  31. Having adult kids. I don’t need a lot of vehicle so I take advantage of the really cheap cars that nobody wants.

  32. Few things:
    1. Where are you videotaping? A new model house? There's no curtains, wall furnishings, no furniture there!
    2. Since when is 20 mpg "great gas mileage" ? My 1965 full sized Ford with a 289 cu in engine got 22 mpg on highway and 18-20 around town. So, where have we progressed??
    3. If Ford and GM made descent quality cars and actually listened to their customers needs, they would still be making cars at a profit. For instance, Buick went from semi-luxury to sports suspension and copied European styling even though that's not what Buick owners wanted. If you want a car that's like a BMW, buy a BMW.

  33. Oh and btw, people have their heads up their ass if they think that gas prices aren't going to go up!

  34. I think the reason why people like SUVs and big cars like that is because of the size. Also, some SUVs look better than a smaller passenger car.

  35. Most people who buy SUVs are never going to use it for what it was made for, offroading, just get a large family car

  36. Haven't see any SVU more beautiful then XUV-500 in all video that's Y US Auto brand Lose in India, V both have top different tst.

  37. I pick a hatchback/fastback over any crossover or SUV any day; driving is no fun with crossovers/SUVs unless you own a $100K+ German SUV

  38. So at 2;18 she asks why American consumers falling back in love with SUVs: It comes down to this: Better mileage, better profits, consumer need. Look at the question and the answer. what a baboon. thumbs down.

  39. I just bought a 2019 civic and I have no regrets, I don't like driving a SUV or van, it feels like your driving a land ship.

  40. Seems like only the American manufacturers are the ones parting ways with sedans and coupes. None of the foreign manufacturers have announced any plans to stop production on sedans… Hmmmm

Add a Comment

Your email address will not be published. Required fields are marked *