Are Crossovers the Answer to SUVs?

Automakers have been touting crossover vehicles as the answer to thirstier truck-based SUVs. However, in the tough-sales month of June crossovers still saw sales fall, just not as badly as SUVs. Ford’s Edge, which has seen very strong sales since it debuted last year, dropped nearly 20% in year-to-year sales in June. That’s not as bad as the Explorer’s 52% plunge, but if that’s the alternative to the Explorer, there clearly aren’t enough people moving from the Explorer to the Edge — where the combined fuel gain is just 3 mpg, from 16 mpg in a V-6 Explorer to 19 mpg in the V-6 Edge — to make up the difference. Ford’s new three-row Flex crossover is just reaching dealerships, so it’s too early to tell how it will do. The Flex is bigger than the Edge, has the same engine and gets slightly better mileage.

GM’s trio of three-row crossovers have yet to set the sales world on fire. Besides the Buick Enclave, which has sold strongly since its debut, the GMC Acadia, which gets a respectable 16/24 mpg city/highway, saw sales fall by 2,900 units in June, which is a 40% drop compared to last year. The Saturn Outlook has been the poorest performer of the three, so it had less distance to fall; its 2,200 fewer units sold was a 58% decline. GM may have had trouble getting units to dealers due to a May strike at the plant that builds the crossovers, but according to Automotive News there was a 43-day supply of the Acadia and a 78-day supply for the Outlook in June. Meaning there were plenty available. GM will release its fourth version of the same vehicle, the Chevy Traverse, this fall due to dealer requests prior to the gas spike. We wonder if dealers still want these crossovers.

Nissan’s new Murano, an updated version of one of the first and most successful car-based crossovers, is off to a poor start. The new Murano got positive reviews and remarks from the entire Cars.com staff, but even the new model is down 24.3% in sales compared to last year, when the old design was on sale.

Toyota’s popular Highlander crossover saw a 30% drop in sales despite a relatively new design. Some of the drop, though, was due to lack of availability of the hybrid version. Surprisingly, Toyota’s new Sequoia truck-based SUV, which gets 14/19 mpg with a big 5.7-liter V-8 engine, saw sales jump 40% in June, with healthy incentives. 

There are a few bright spots for crossovers. Dodge’s new Journey, which is one of the most affordable three-row crossovers on the market, sold more than 5,000 units, outpacing the Murano and any of the GM models. It was one of only a few gains for Chrysler this month.

The other family vehicle of choice, the minivan, didn’t fare much better. Models from Toyota, Honda, Hyundai and Nissan saw significant sales drops in June. Only the Kia Sedona, Chrysler Town & Country and Dodge Caravan saw increases.   

While a 25% decline is certainly better than a 50% decline, automakers can no longer make the claim that slightly more efficient crossovers are what people are clamoring for. In this economy, buyers are shifting to smaller cars with markedly better fuel economy, giving up the size and utility of crossovers, SUVs and minivans.

Besides the Highlander, there are no hybrid crossovers or minivans on the market. Perhaps families are just biding their time until the economy as a whole improves before buying a new vehicle of any type. Lots of people may be lining up to buy economy cars, but there aren’t many single folks considering family vehicles. That makes these crossovers somewhat of a niche vehicle — even if it’s a large niche — still waiting for the automaker hype to meet reality.

Comments

[Marko]

I'm trying to sell my Mercedes G500(10mpg city) and its been IMPOSSIBLE! Talk about bad gas mileage, you can barely give these things away anymore.

[Cheryl]

I believe the reason why sales have dropped off, is because there not offering consumers anything on their trade. Therefore the person owning the Explorer and other big SUV's are stuck!!

[LM]

I think it's that people are just averse to BIG HEAVY vehicles. Mass is the biggest obstacle to efficiency and these crossovers are almost as massive as regular truck-based SUVs.

Overall, the economy sucks. Who can spend $35 grand oh a luxury barge? No matter if it's truck-based or car-based.

How have Mazda5 and Kia Rondo sales been doing?

[LM]

Even RAV4 sales are down 26% from last year...and that is neither overly LARGE or thirsty! Highlander is down 31%.

I think it's more the economy (people can't get those home equity loans anymore) so they are holding on to their old cars longer, and those who do need a new car are snatching up those Civics.

[Dave T.]

Mazda 5 up 29%
Rondo down nearly 50% but that can't be because of demand because it was up last month...not sure what's going on with that figure. Might be an 09 turnover issue?

[Dave T.]

Cheryl,
You might be right there.

[ziggy]

I hope this trend continues for months to come...it's about time. BTW I have no sympathy for anyone that pays $80k for car.

[J]

Are Crossovers the Answer to SUVs?

No. "Crossover" is just another (clever marketing)name for "SUV". But shhh...don't tell anyone.

[AV]

if the Mazda 5 was a little bit longer and had a bit more power, it would probably make the cut for many families. for most families though, the third row is just too small and the cargo space left when it is in use is just to small also. plus, the engine funs out of steam pretty easily. mazda should consider taking the 2.3 turbo and six speed automatic out of the CX-7 and putting it in the Mazda5, and then giving the CX-7 a new engine.

[maxwell]

They're still pigs - big, gaudy and wasteful. Wow! I can get a whole 24 mpg on the highway and pay a small fortune for the privilege.

People are finally getting it through their heads that burning gas is just about the same as pulling out few twenties and lighting them on fire.

When so many have dumb suvs that nobody wants in trade, they finally get it into their head that it's not such a good idea to waste buckets of money, and take on huge debt, on such a quickly depreciating asset.

Of course the second mortgage piggy bank has dried up thanks to the mortgage crisis. Any number of fools were mortgaging their house to get money to buy these things so they could pretend they actually had money and impress the neighbors. Remember that these cuv things were in the pipeline long before the mortgage crisis hit.

Puh leeze! These crossovers are still enormous! Fat power-laden machines that are soggy and bloated with junk, and to top it all of, they're expensive. Either they're cheap material or poorly made, or are beyond the reach of a normal car payment.

[Mart]

You only have to read comments like AV's above to understand that the US' love of crazy power and inefficient cars will not easily be cured.

The Mazda5 is already perfectly powerful by any globally accepted standards. Only in the US would a 2.3 liter engine be deemed anything other than "adequately over-engined". It'd be at least the sporty model in the range and have 1 or 2 engines below it for the budget minded.

If higher gas prices stay as they are or get higher, the population of this country isn't just going to have to get used to smaller cars, they are going to start seeing smaller engines in existing cars. Rabbit with a 1.4? - yep. Mazda6 with a 1.8? - Yep. Aveo with 1.0? - yep. These cars aren't underpowered per se, just underpowered (in people's imaginations) here in the USA.

[ziggy]

Bring back the 3 cylinder Geo Metro!!!!!

[AV]

Mart-

adding the 2.3 turbo will acctually be beneficial to the lineup. the regularly aspirated 2.3L engine just is enough power with light loads and when on the highway, but when you have a full load of people or luggage or are going up the hill, the engine has to rev high and work hard, cutting fuel economy.

besides, the engine is plenty powerful in the world market because many people that buy cars around the world only use them in cites and rarley exceed 40 mph.

[Mart]

Well, to be honest people also drive on highways at 80+ mph in Europe and elsewhere too. they just do it with smaller engines.

In my experience, people generally drive slower here than elsewhere (thank the lower speed limits and very effective traffic cops), which makes it all the more inexplicable why everyone here has so much more power than elsewhere.

certainly it's not at all unusual to be overtaken in the UK while doing 90+ mph by a 1.0 Citroen Saxo being revved to its very life by an over-excited teenager...

In everyday life, most people can live with a 0-60 time of around 10 secs with no problem. Yeah, overtaking performance may not be as great, but it's just something you get used to.

[DL]

The name "crossover" used to mean, for me anyway, a taller (often "cool" looking) wagon that drove/handled like a car/ wagon, wasn't really heavier than a wagon, and handled like a wagon.

now "crossover" is slapped on anything because "SUV" became a dirty name. that stupid naming trick apparently doesn't work that well.

[Troy S.]

3 car seats with toddlers and associated gear will not fit in my Civic. A small CUV is the only answer.

[Frank]

I love my Explorer and the gas milage does not effect me one bit as I work from home. If people learned financial responsibility they wouldn't be at the mercy of the oil companies and our politicians who are the ones really screwing you.
My Explorer is safe and roomy for my family of five and it tows our boat when necessary. We've been hit two times and in both cases suffered no injuries. The same couldn't said for the other parties. I really hope gas goes to $6 a gallon as it'll clear out the riff-raff who have no business driving in the first place.

[car articles]

The whole industry prices for SUVs and trucks has declined nearly 25 percent, which is approximately four times the normal depreciation expected over this period and well in excess of the depreciation expected over a full year.”

Last week was a busy week for the dealership because of the deals the stores have going on – 0 percent interest for 72 months vs. the typical 6.9 percent interest. These deals are just to get rid of SUVs.

BUT hybrids are in high demand and that is good for the new direction we need to take in respect to fuel efficiency

[car articles]

The whole industry prices for SUVs and trucks has declined nearly 25 percent, which is approximately four times the normal depreciation expected over this period and well in excess of the depreciation expected over a full year.”

Last week was a busy week for the dealership because of the deals the stores have going on – 0 percent interest for 72 months vs. the typical 6.9 percent interest. These deals are just to get rid of SUVs.

BUT hybrids are in high demand and that is good for the new direction we need to take in respect to fuel efficiency

[car articles]

The whole industry prices for SUVs and trucks has declined nearly 25 percent, which is approximately four times the normal depreciation expected over this period and well in excess of the depreciation expected over a full year.”

Last week was a busy week for the dealership because of the deals the stores have going on – 0 percent interest for 72 months vs. the typical 6.9 percent interest. These deals are just to get rid of SUVs.

BUT hybrids are in high demand and that is good for the new direction we need to take in respect to fuel efficiency

[car articles]

The whole industry prices for SUVs and trucks has declined nearly 25 percent, which is approximately four times the normal depreciation expected over this period and well in excess of the depreciation expected over a full year.”

Last week was a busy week for the dealership because of the deals the stores have going on – 0 percent interest for 72 months vs. the typical 6.9 percent interest. These deals are just to get rid of SUVs.

BUT hybrids are in high demand and that is good for the new direction we need to take in respect to fuel efficiency

[LM]

Please remove the multiple posts...it's annoying.

As far as adding more power to the Mazda5 - I agree - that's the typical American response. Make it longer and thirstier. The point of the arguments here, and of the Mazda5, is that it's a good size for MOST families and has a 4-cylinder engine. Most people only have 1 or 2 kids and don't need three rows of seats. You can still seat 5+ in a Mazda 5 if and when you need it. You don't need 7 seats all the time when you only carry 7 people once a month. Unless you're a school bus, people don't need the tons of space and power you are asking for.

Also, if you don't drive it fully loaded up a long grade on a regular basis, there's no need to put in a thirstier engine. Just leave it as is. I bet they could even get away with putting in a higher efficiency 1.8L and taking out the rear-most seat to save weight. Of course, I guess that's what the Mazda3 is for.

[J]

How about comparing the decline of crossover and the total vehicles sold?

[Mart]

Troy S,

Why not buy an Accord? A CUV is NOT your only choice dude...