Wednesday, June 27, 2007

Demand for Midsize SUVs Plunges in U.S. Market

Demand for midsize non-luxury sport-utility vehicles has plummeted 43 percent since 1997. Midsize SUVs now make up just over 5 percent of the American auto market, says J.D. Power and Associates' Power Information Network.

Consumers are flocking to crossover vehicles or small or midsize cars instead, the Power organization said. It reports a steep decline in owner loyalty for the segment, too. Only 17 percent of midsize-SUV owners trade in their vehicle for another of the same kind, down from 29 percent in 2004.

This sea change appears to have been triggered by rising gas prices and growing concerns about the environment. No vehicle illustrates the shift better than the Ford Explorer, which Power noted was the third-most-popular model in the U.S. for several years in the late 1990s.

"But now, the Explorer ranks 46th through the first five months of this year, and there are no midsize utility models among the 20 most popular vehicles in the country," Power said in a statement.

Automakers are rapidly moving away from midsize SUVs, too. The number of midsize utility models in the market peaked at 22 in 2003, 2004 and 2005. But only 16 models make up the segment this year.

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