The Sport Utility Vehicle: America's Gift That Keeps on Giving

Matt Posky
by Matt Posky

Not to sound overly patriotic or offend my Canadian coworkers, but United States is responsible for giving the world so much greatness that it’s difficult not to get a little misty eyed when I stop to think about it.

America’s long history of inventiveness has blessed the globe with modern marvels like sunglasses, chewing gum, kitty litter, the atomic bomb and, of course, sport utility vehicles. While the atomic bomb doesn’t get much broad praise these days, the rest of the aforementioned items are exceptionally popular outside the nation’s borders — especially SUVs and their bastard offspring, the crossover.

In fact, they’ve been such a runaway success that SUVs accounted for over 25 percent of all European passenger vehicle sales in 2016. That’s up from 21 percent in 2015 and there’s no sign of it stopping anytime soon. Sport utility vehicles are expected to surpass a third of the region’s new vehicle market by 2020. Assumedly, America’s own SUV sales will be hovering around 100 percent by then — maybe more. But let’s not discount how crossover-crazy the rest of the globe has become or forget to remind ourselves that most of the world’s best-selling SUVs aren’t exactly “Made in America.”

“It’s a global phenomenon that started in the U.S, spread to Europe and China and is now shaping emerging markets such as Brazil, India and Southeast Asia,” said Felipe Munoz, a global analyst for JATO Dynamics told Automotive News Europe.

This year, automakers are forecast to sell more than 4 million SUVs in Europe, which would push the market share past 28 percent and debunk the Western notion that Europe is a continent filled entirely with adorable vintage hatchbacks and small homes with ugly wallpaper.

China is even crazier for SUVs. According to figures from the Chinese Association Of Automobile Manufacturers, SUVs accounted for roughly 40 percent of the 2017 market’s 4.5 million total sales. That figure only accounts for the first half of the year, but it is at pace to result in a number many times higher than in 2011.

Since U.S. sales statistics typically place crossovers, SUVs, and pickups (which America also invented) into one big category, truck sales amassed a 60.7 percent share of 2016’s 17.5 million deliveries. Crossovers represented 33.8 percent the national total, creeping up from just 16.8 percent in 2007.

If you’re wondering why everyone seems to love them so much, automakers wonder the same thing. While their surging popularity initially seemed to wane as gas prices surged, they returned stronger than ever. They also returned in more shapes and sizes, meaning it was easier for customers to rationalize paying more for something they didn’t necessarily need.

“Prices are led by what consumers will pay, and clearly they’re valuing SUV robustness, the driving position, the big wheels, or they wouldn’t be buying them in the way they are,” Citroën CEO Linda Jackson told Automotive News Europe. “Clearly, SUVs are very profitable for any manufacturer,” she said.

Citroën was one of the few manufacturers without a comprehensive sport utility lineup and it’s funky little fleet hasn’t been able to see the kind of gains SUVs almost guarantee an automaker. It released the C3 Aircross earlier this year and plans to introduce more SUV/Aircross variants as it begins shying away from MPVs.

It’s not really Citroën’s fault for being behind the times, though. Not everyone in Europe could have possibly seen this trend coming because few North Americans did, either. A lot of automakers have been caught with their pants down. While most companies have fleshed out their lineups to include plenty of high-riding options, getting into segments early and playing with a complete deck has proved a massive advantage. The Nissan Rogue, Ford Escape, and Honda CR-V are all doing just fine, but even old-school body-on frame SUVs appear to be enduring the market slowdown rather nicely.

However, in Europe there are concerns that the growing outrage toward diesel-powered vehicles will severely hinder SUV growth, as that’s the dominant engine. Automakers are trying to mitigate this by accelerating electrification efforts and keeping fuel economy high (because EU fuel prices definitely will be). But, even if they fail, it’s not going to be enough to kill the segment. People are already paying extra money for SUVs when a simple hatchback would suffice, so there’s no reason they won’t spend a few extra dollars, pounds, euros, or yuan for a gasoline-powered SUV if diesels vanish.

The only thing likely to ever stop the SUV’s momentum is for it to become passé or so ubiquitous that we don’t really regard them as “different” anymore.

[Image: Fiat Chrysler Automobiles]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Shaker Shaker on Aug 14, 2017

    It's wonderful that we aspire to drive vehicles that get

    • See 3 previous
    • Shaker Shaker on Aug 15, 2017

      @gtem Good point - that could be an issue that would limit the HH from being a good tow vehicle, too. I wish CR would evaluate these 4WD/AWD systems in their ratings.

  • Yankinwaoz Yankinwaoz on Aug 14, 2017

    I believe you! I passed a Bentley SUV this morning. The Bentley Bentayga. My jaw hit the floor. Even Bentley is in the SUV game now. I thought it was a BMW X5 at first. But it had that Bentley crest and grill.

  • Mikey My late wife loved Mustangs ..We alway rented one while travelling . GM blood vetoed me purchasing one . 3 years after retirement bought an 08 rag top, followed by a 15 EB Hard top, In 18 i bought a low low mileage 05 GT rag with a stick.. The car had not been properly stored. That led to rodent issues !! Electrical nightmare. Lots of bucks !! The stick wasn't kind to my aging knees.. The 05 went to a long term dedicated Mustang guy. He loves it .. Today my garage tenant is a sweet 19 Camaro RS rag 6yl Auto. I just might take it out of hibernation this weekend. The Mustang will always hold a place in my heart.. Kudos to Ford for keeping it alive . I refuse to refer to the fake one by that storied name .
  • Ajla On the Mach-E, I still don't like it but my understanding is that it helps allow Ford to continue offering a V8 in the Mustang and F-150. Considering Dodge and Ram jumped off a cliff into 6-cylinder land there's probably some credibility to that story.
  • Ajla If I was Ford I would just troll Stellantis at all times.
  • Ronin It's one thing to stay tried and true to loyal past customers; you'll ensure a stream of revenue from your installed base- maybe every several years or so.It's another to attract net-new customers, who are dazzled by so many other attractive offerings that have more cargo capacity than that high-floored 4-Runner bed, and are not so scrunched in scrunchy front seats.Like with the FJ Cruiser: don't bother to update it, thereby saving money while explaining customers like it that way, all the way into oblivion. Not recognizing some customers like to actually have right rear visibility in their SUVs.
  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
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