The carmaker will introduce SUVs in four new segments, where the company is currently lacking products, as it feels the boom will continue not only in the United States but around the world.
11 Feb 2016 | 2430 Views | By Autocar Pro News Desk
Ford Motor Company has pledged to bring in four new SUVs in the next four years. At the 2016 Chicago Auto Show, the company’s vice president of Marketing, Sales and Service Mark LaNeve said, “As members of the 80-million-strong millennial age group enter their prime child-rearing years, a leading indicator ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Ford Motor Company has pledged to bring in four new SUVs in the next four years. At the 2016 Chicago Auto Show, the company’s vice president of Marketing, Sales and Service Mark LaNeve said, “As members of the 80-million-strong millennial age group enter their prime child-rearing years, a leading indicator of more SUV sales, nearly 80 million aging baby boomers continue to prefer their SUVs. It’s a demographic double whammy and it all points to one thing – more SUVs for the foreseeable future.”
The carmaker will introduce SUVs in four new segments, where the company is currently lacking products, as it feels the boom will continue not only in the United States but around the world.
While low gas prices have contributed to the growth in SUVs in recent years, much improved fuel efficiency in the latest generation of utility vehicles leads Ford to believe a potential rise in gas prices wouldn’t push consumers back to passenger cars.
The company expects SUVs to grow up to 40% of the market in the coming four years.
LaNeve cited recent Ford research that shows once millennials even begin thinking about starting a family, their interest in shopping for SUVs goes up significantly. And as many have delayed starting families, these yet-to-form family households represent additional SUV growth opportunities for the company. He also noted that many boomers feel younger and more active driving an SUV.
“Some SUVs now rival the fuel efficiency of V6-powered midsize sedans from only a few years ago and as baby boomers grew up with much less capable, much less efficient vehicles, they tend to appreciate the efficiency of Ford’s newest SUVs,” added LaNeve.
Even if gas prices go up refueling costs for owners of modern SUVs will be much less than they were during the last SUV boom, he explained.