Together, millennials and baby boomers give Ford 160 million good reasons to expect that the surge in SUV sales will continue into the next decade.
Ford predicts that growth in SUV sales will continue not only in the United States, but around the world as well. Thus, the company has announced plans to add 4 new SUVs in its line-up over the next 4 years, to fill the gap in its SUV segments. These will be new vehicles in segments which the company does not currently compete in.
So what are these 4 new SUVs likely to be? We don’t know yet for sure, and we won’t until Ford shows its hand.
“As members of the 80-million-strong millennial age group enter their prime child-rearing years, a leading indicator of more SUV sales, nearly 80 million aging baby boomers continue to prefer their SUVs,” said Mark LaNeve, Ford Motor Company vice president of Marketing, Sales and Service. “It’s a demographic double whammy and it all points to one thing – more SUVs for the foreseeable future.” he added.
LaNeve cited recent Ford research that shows once millennials even begin thinking about starting a family, their interest in shopping for SUVs goes up significantly. And as many have delayed starting families, these yet-to-be family households represent additional SUV growth opportunities for the company. How’s that for looking ahead?
Yet millennials alone aren’t expected to drive SUV growth – ageing baby boomers tend to stay with or return to SUVs, in part because it’s easier to get in and out of a vehicle that sits higher off the ground than a passenger car. LaNeve also noted that many boomers feel younger and more active driving an SUV.
While low petrol prices have contributed to the growth in SUVs in recent years, much-improved fuel-efficiency in the latest generation of utility vehicles leads Ford to believe a potential rise in petrol prices wouldn’t push consumers back to passenger cars.
“Some SUVs now rival the fuel efficiency of V6-powered midsize sedans from only a few years ago,” said LaNeve, “and as baby boomers grew up with much less capable, much less efficient vehicles, they tend to appreciate the efficiency of Ford’s newest SUVs.” Even if petrol prices go up, he added, refueling costs for owners of modern SUVs will be much less than they were during the last SUV boom.
Source: Ford
