Automotive News : Crossovers Continue To Be the Kiss of Death for Minivans

Minivan owners are bailing out of the market at a "brisk and growing rate," according to a new study released on Monday by J.D. Power and Associates. They are leaving in droves to jump on the crossover bandwagon, according to retail sales transaction data.

The percentage of midsize-van owners trading to a crossover rose from 14.8 percent in the second quarter of 2005 to nearly 24 percent in the second quarter of 2007, according to the Power Information Network. Market share for midsize vans is a shadow of its former self. Power pegs the market share at 4.4 percent of the new-vehicle retail industry, slightly more than one-half of its share in 1995. "Midsize-van owners have been switching to crossovers at a brisk and growing rate," said Tom Libby, senior director of industry analysis at the Power Information Network.

The number of models on the market has plunged to 15 — including such stalwarts as the Dodge Caravan, Honda Odyssey and Toyota Sienna — down from a peak of 21 in 2004. Power says of the 15 models currently on the market, "six have recently been discontinued or will be in the near future, based on information provided by their manufacturers." The average customer rebate on minivans has ballooned from $2,428 in the second quarter of 2005 to $3,155 in the second quarter of 2007.