LexFather

http://money.cnn.com/2007/12/17/maga...ion=2007121815

RIP for the SUV
Stick a fork in them, they're done. SUVs once ruled the Earth but like the dinosaurs, they've outlived their time, argues Alex Taylor III.
By Alex Taylor III, senior editor

suv_cars_generic.03.jpg
In the era of high gas prices and tougher fuel efficiency standards, SUVs no longer meet consumers' desires.
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NEW YORK (Fortune) -- Never easy, the automobile business has gotten exponentially more difficult in recent months, as manufacturers rewrite their new model plans to cope with the eventual tightening of fuel economy standards.

The latest victim is Volvo. According to a report in a Swedish auto magazine, Volvo is performing euthanasia on its popular sport-utility, the XC90. A revamped XC90 that was due to hit the market in 2010 has been cancelled because Volvo had no hybrid powertrain to put in it. For a brand that aspires to greenness as Volvo does, such an absence could be highly damaging to its environmental image. So after a facelift that will keep it on the market until 2012, the popular and highly-profitable XC90 will go wheels-up.

Although Volvo denied any plans to kill the XC90, it wouldn't be the first SUV headed off to the automotive graveyard. According to intelligence work by Global Insight, the Waltham, Massachusetts research and consulting firm, General Motors (GM, Fortune 500) has decided not to replace the old Chevy TrailBlazer and GMC Envoy when they expire in 2010. And Lexus has designated no successor to the GX 470 when it goes away at the end of the 2009 model year.

"They have to do it," says senior analyst John Wolkonowicz. "It is what consumers want."

Other manufacturers area are moving old SUV nameplates over to new-style SUVs, known as crossovers, that weigh less, deliver better fuel-economy, and are less in-your-face than the old trucky ones.

Both consumers and automakers will wind up paying for the changeover. Switching from old-style SUVs is expensive for automakers, who have to scrap their profitable truck engineering for more cost-constrained car mechanicals. That additional cost is likely to be passed along to consumers - along with all the other expenses of meeting the new fuel-economy requirements that could stretch as high as $5,000 a vehicle.

It is an ignoble end to a proud motoring era. Not more than 15 years ago, SUVs ruled the automotive landscape and produced record profits during Detroit's last golden age. Now the most popular SUV of that era, the Ford Explorer, is headed to the scrap heap, done in by fuel economy and the lingering effects of tire-shredding and rollover issues from several years ago.

The Explorer has been a shadow of its former self, selling at less than half of the 400,000 units a year it did during its glory years. The name will continue on but the vehicle is moving on the passenger car platform used by the Ford Taurus around 2011. (Those interested in a sneak preview can see Ford's (F, Fortune 500) concept-car version of the new Explorer at the 2008 Detroit auto show in January.) Likewise, the Chrysler Aspen and Dodge Durango, latecomers to the SUV party, will shift onto the unibody platform used by the Jeep Grand Cherokee.

Consumers get more from crossovers because they combine the functionality of the old truck-based SUVs with the ride and handling of a passenger car. Wolkonowicz says the shift from truck to car engineering probably saves 500 pounds in weight. The lower tonnage, along with improved aerodynamics that comes from sitting closer to the ground, will boost gas mileage.

Serious off-roaders, though, will want to stick with their Jeep Wranglers and Hummers, which will stay true to their rugged truck roots. Likewise, drivers who find themselves towing trailers will also want to keep their Chevy Tahoes and Suburbans, or Ford Expeditions, which will soldier on with their historic parts in place.

GM though, has found a way to have its cake and eat it, too. It has designed a hybrid gasoline-electric drive system for the Tahoe that gives the big SUV the same mileage as some passenger cars: 21 miles per gallon in the city, 22 mpg on the highway. The Tahoe hybrid is one of three finalists for the North American Truck of the Year award, voted by a jury of journalists.

"I'll be surprised if it doesn't win," says Wolkonowicz. "This is a way for people to get functionality and fun to drive in one package."

It all comes at a price. A two-wheel Tahoe hybrid costs $50,090, about $4,000 more than a comparably equipped conventional one, to pay for the electric powertrain and all those batteries. Progress in automobiles doesn't come cheap

Stelth91

What about people who have to haul their boats? What about road trips? It would be pretty hard to haul our boat with a 3L crossover. I believe there will always be a market for SUV's. They aren't going out of because of gas mileage.

MD350

I know someone who was in a major car accident, and his SUV saved his life. I think safety over gas mileage is something that some of those compact car owners don't think about.

llamaboiz

Sorry i dont buy that, there are tons of accidents everyday and some look horrible yet ppl still live, on tv/net that guy in the stolen vette that hit the rear of the semi and totally disintergrated the vette well that guy lived so did the vette save his life? When its your time to die you'll die, reguardless of what your doing.

I'm glad the SUV is 'going', never liked them when they first came out, still dont like them today.

Bean

iTrader: (1)

Haha. The new laws passed over time may help get rid of a lot of them; but they'll never completely leave.

Come down and live where I live where the majority of vehicles are huge trucks and big SUVs. This is another example of an editor with their head up in a dark, dank place and not looking at the REST of the country. Where the REST of the country is mostly red-state, SUV-driving, boat-hauling, NASCAR-watching, Republican-voting people. Not all of us in therse states fit in that group, I don't like SUVs at all personally. I can see the utility of some of the smaller ones, but the larger ones like the Denali and Escalade's reason for existing just elude me. But my main point is that SUVs won't go anywhere anytime soon.

Sc.ab

hoorah! death the SUV

mex lex

iTrader: (4)

I can't see SUVs completely disappear because of gas prices. All that is happening, is that the less popular SUVs like the durango, aspen, etc are being killed. Sure some people are switching over to crossovers for gas prices, but now at the same time, lifted 4X4 trucks with huge tires are more popular than ever, they are just as much of gass guzzlers or worse. And as a matter of fact, a lot of those trucks are diesel, which is just as expensive as premium gas or more.

PhilipMSPT

iTrader: (5)

People point to gas-mileage so easily when talking about SUVs. However, if that is the case, why do a bunch of sports cars still sell? I mean, if you think about it, a gas guzzling SUV is far FAR more functional than a comparably-priced gas-guzzling sports coupe.

This is why crossover vehicles are doing very well. Maintain the carrying and cargo capacity of an SUV, without the off-road or towing capabilities. I mean, I doubt that most SUVs ever go off road, nor do they tow any yachts or boats or such.

SUVs are not selling because the crossover market is taking its place...

UDel

Most sports cars are pretty light and much lighter then SUVs which mean they generally get decent gas mileage excluding extremely high power v-12s, and super high reving v8 like in Ferraris. 911s, vettes, 350zs, Elise, NSX, Supras, miatas, boxsters, s2000s, M3s, etc are generally pretty light and get decent gas mileage, it may not be on par with fwd 4 or 6 cylinder family sedans but they get much better gas mileage then giant SUVs and pickups. Sports cars generally get bad mileage when they are driven hard at high revs which is where most of their power is. Heavy SUVs get bad mileage even when driven conservative and absolutely horrible gas mileage when driven aggresively

Most people who buy sports cars buy them because they love the vehicle and love driving it and exploring its capabilities. Rarely do people just buy a sports car without really wanting it and use it for basic transportation or feel it is nessesary, that is why sports cars generally don't make a big dent in the marketplace or what is on the road so even ones that don't get good mpg are not taking a big toll on the environment or hurting peoples wallets because they are not that common and not many people own or drive them. Many people who own sports cars don't use them as daily drivers and usually drive something else back and forth to work/errands.

Some luxury coupes are pretty heavy and don't get great gas mileage but they still generally are much lighter and get much better gas mileage then SUVs. Only the really high powered rare models like Bently Cont GT, v12 CLclass, get mileage almost as poor as big SUVs and those cars are extremely rare and expensive.

Just about all SUVs are heavy and get poor gas mileage, much poorer then your average sports car. SUVs and big pickups are very popular and one of the most popular vehicles on the road. Many people feel they need SUVs or large pickups when they decide to purchase a car and the the fact is theydon't need a vehicle like it and will never use it for its intended purpose. It may have the size and towning capability that makes it more useful then a sports car but if you never use it then that just equals extra weight and power that wastes gas for no reason. Most people who buy SUVs and big pickups are only using it to drive to and from work and run errands that a lighter car is perfectly suited for. They drive them everyday as it is there everyday vehicle. I know plenty of people with big SUVs and pickups and they never really needed the vehicle for its intended purpose, they don't go offroading, don't haul large heavy loads, don't tow large heavy boats/trailers, don't travel with lots of people. It is just them driving it back and forth to work and running errands and wasting alot of gas and money for no reason.

I am glad they may be dissapearing or will be in lower numbers as they waste natural resourses and are dangerous especially when driven by people who don't understand their large mass and high center of gravity and drive them like normal passenger cars.

<VENOM>

Car trends are constantly changing, the Domestics have the most to lose so they better start changing their old ways or the foreign companies are really gonna start to dominate.

Im sure plenty of vehicles will vanish, some of the older guys in here can probably name off several cars that went away.

I will agree that to many people buy into the image not realizing what these things cost to fill and vehicles should be used for the intended purpose behind them , the ones that are needed will stay all the others that popped up to capitalize on a trend will vanish,

blacksc400

iTrader: (4)

SUV are not going to die in the near future...
ppl will buy them...

3m ta3

It will never happen.

iKenn

iTrader: (1)

i love SUV's iv been driving one since i got my licenses, untill a week ago when i got my IS350. I like the SUV because it feels "safe". IMO

mex lex

iTrader: (4)

+1

I see guys with big lifted trucks driving like maniacs, speeding and weaving in and out of traffic, as if they were driving a miata or something. And even stupider is that 2 minutes later I am right next to them at the stoplight .

Joe C

I just wrote up a whole thing on this topic, then I realized this is what I'm typing:

"Blah Blah Blah, I'm just like every other jackass on the internet who thinks that it's important to voice my opinion and I'm going to make an impact - also, I think this will change people's prospectives on the subject."

It wouldn't have, so I deleted it.