SUVs Are Bumper-to-Bumper on Dealer Lots, With More on the Way - WSJ - 0 views
-
The number of crossover and sport-utility models on sale in the U.S. has steadily climbed this decade from 70 individual nameplates in model-year 2014 to 96 currently, according to a Bank of America report. By 2023, that figure is expected to rise to 149 models, the most ever for this category, the report found
-
he estimates the profit premiums auto makers have long enjoyed on these models will fall over the next three years, eventually matching the lower margins now earned on sedans.
-
Today, crossovers and sport-utility vehicles make up more than 47% of the new-vehicle market, while sales of sedans and hatchbacks have plunged this decade to only 30% of the market today, down from about 50% during the same period in 2012
- ...2 more annotations...
-
Many drivers say they prefer the elevated ride height and bigger cargo space. Auto manufacturers can charge a premium for the vehicles, which cost only slightly more to produce than similar-sized cars because they share much of the same engineering. For instance, the average price paid for a midsize SUV in May was $37,790, nearly $12,000 higher than a midsize sedan, according to sales data from Kelley Blue Book.
-
Japanese and South Korean car companies have also rolled out new sport-utility offerings as their earnings have been hit by slowing sedan sales—long a sweet spot for brands like Toyota and Honda.