Audi To Hyundai, Toyota To Volkswagen, SUV Market Can Learn From Restyled Pontiac Vibe
http://www.theweeklydriver.com/articles/1234/1/Audi-To-Hyundai-Toyota-To-Volkswagen-SUV-Market-Can-Learn-From-Restyled-Pontiac-Vibe/Page1.html
By James Raia
Published on 07/17/2008
Like an aging athlete whose skills are still strong but diminishing, sports utility vehicles are facing a dilemma. Regardless of size, shape and legacy, as gas prices have sharply
escalated, SUV sales have sharply declined. The result for SUV
manufacturers has been nothing short of a buyers’ mass exodus. Have SUVs passed their prime or is there still live and a better
position for the utilitarian vehicles that changed the automotive
marketplace?
Like an aging athlete whose skills are still strong but diminishing, sports utility vehicles are facing a dilemma. Regardless of size, shape and legacy, as gas prices have sharply
escalated, SUV sales have sharply declined. The result for SUV
manufacturers has been nothing short of a buyers’ mass exodus. Have SUVs passed their prime or is there still live and a better
position for the utilitarian vehicles that changed the automotive
marketplace?Like an aging athlete whose skills are still strong but diminishing, sports utility vehicles are facing a dilemma. Has they passed their prime or is there a better position for the utilitarian vehicles that changed the automotive marketplace?
About 50 manufacturers currently produce SUVs, large gas-guzzlers like Hummer to more economic styles called crossovers, mini-SUVs and compact SUVs, including the recently restyled Pontiac Vibe.
Regardless of size, shape and legacy, as gas prices have sharply escalated, SUV sales have sharply declined. The result for SUV manufacturers has been nothing short of a buyers’ mass exodus
Consider:
In a recent article in the New York Times, a General Motors spokesperson said large SUV sales reached a peak of 600,000 in 2002, but sales of only 250,000 are predicted for 2008. Ford has reported a sales decline of 44.4 percent among its large SUVs in a year time frame ending in May. Sales of Ford’s crossover line declined 7.3 percent in the same year span.
In recent weeks, The Weekly Driver has test driven several SUVs, including the Toyota Highlander, Hyundai Vera Cruz, Volkswagen Touareg, Audi Q7 and Pontiac Vibe.
The quintet of SUVs has many similarities. Some smaller, efficiently designed and edgy (Vibe), some touted as seven-passenger vehicles (Highlander, Touareg), and another with family utilitarian objectives (Hyundai Vera Cruz), And there’s the luxury option (Audi Q7). They all combine ruggedness with functionality and comfort.
So, it’s easy to understand why SUVs have had a long tenure as the automotive industry’s hot-selling segment.
But then there’s the caveat. Gas mileage or lack thereof is the weakest characteristic in much of the SUV segment. Thus, plummeting sales.
The Audi Q7 is among the most plush and comfortable SUV’s I’ve driven. But it has a 4.2-liter 350-horsepower engine, and its estimated gas mileage is 12 mpg in the city, 17 mpg on the highway.
The manufacturer estimates that based on 15,000 miles driven per year at $3 per gallon, gas for the Audi for one year costs $3,213. Add 50 percent to the total if pricing gas at $4.50 per gallon and for one year, it will cost $4,820. That’s slightly more than $400 per month.
The Audi A7 I drove for a week had about $9,000 in optional equipment pushing its purchase price to nearly $69,000. That’s a hefty sum for most budgets, but it leads to an industry axiom: “If you can afford the car, you can likely afford the gas.”
The Hyundai Vera Cruz (simplicity, impressive acceleration), Toyota Highlander (spacious design, ample cargo space) and the Volkswagen Touareg (high-end technology) have their respective appeals. But while not as gas guzzling as the Audi (the Touareg is a close second for poor gas mileage), the lack of environmental efficiency in these three styles is hard to overlook.
At the opposite end of the SUV (mini-SUV) spectrum is the Pontiac Vibe — and that’s not a bad thing. If fact, while it’s not fair to compare the Q7 with the Vibe, the restyled Pontiac offers plenty with a starting price of one-quarter of the Audi.
Certainly the Vibe doesn’t have the dominating presence on the open road like the Q7. But with gas mileage averages of 25 (city) and 33 (highway), a good share less luxury seems a good tradeoff for twice as much gas mileage.
The 2009 Vibe offers a base, 1.8-liter, 132-horsepower, 4-cylinder engine that gains additional power over the previous generation. The most expensive, upper trim comes with a 2.4-liter, 158-horsepower inline-4.
The Vibe is in its own crossover class. It’s a wagon/mini SUV with a starting price if $15,895. The performance GT model has a base price of $19,895.
There’s no doubt the SUV market is in serious jeopardy. But a few less high-end SUVs and a few more efficiently designed and environmentally sound offerings like the Vibe seems like a good step forward.
About 50 manufacturers currently produce SUVs, large gas-guzzlers like Hummer to more economic styles called crossovers, mini-SUVs and compact SUVs, including the recently restyled Pontiac Vibe.
Regardless of size, shape and legacy, as gas prices have sharply escalated, SUV sales have sharply declined. The result for SUV manufacturers has been nothing short of a buyers’ mass exodus
Consider:
In a recent article in the New York Times, a General Motors spokesperson said large SUV sales reached a peak of 600,000 in 2002, but sales of only 250,000 are predicted for 2008. Ford has reported a sales decline of 44.4 percent among its large SUVs in a year time frame ending in May. Sales of Ford’s crossover line declined 7.3 percent in the same year span.
In recent weeks, The Weekly Driver has test driven several SUVs, including the Toyota Highlander, Hyundai Vera Cruz, Volkswagen Touareg, Audi Q7 and Pontiac Vibe.
The quintet of SUVs has many similarities. Some smaller, efficiently designed and edgy (Vibe), some touted as seven-passenger vehicles (Highlander, Touareg), and another with family utilitarian objectives (Hyundai Vera Cruz), And there’s the luxury option (Audi Q7). They all combine ruggedness with functionality and comfort.
So, it’s easy to understand why SUVs have had a long tenure as the automotive industry’s hot-selling segment.
But then there’s the caveat. Gas mileage or lack thereof is the weakest characteristic in much of the SUV segment. Thus, plummeting sales.
The Audi Q7 is among the most plush and comfortable SUV’s I’ve driven. But it has a 4.2-liter 350-horsepower engine, and its estimated gas mileage is 12 mpg in the city, 17 mpg on the highway.
The manufacturer estimates that based on 15,000 miles driven per year at $3 per gallon, gas for the Audi for one year costs $3,213. Add 50 percent to the total if pricing gas at $4.50 per gallon and for one year, it will cost $4,820. That’s slightly more than $400 per month.
The Audi A7 I drove for a week had about $9,000 in optional equipment pushing its purchase price to nearly $69,000. That’s a hefty sum for most budgets, but it leads to an industry axiom: “If you can afford the car, you can likely afford the gas.”
The Hyundai Vera Cruz (simplicity, impressive acceleration), Toyota Highlander (spacious design, ample cargo space) and the Volkswagen Touareg (high-end technology) have their respective appeals. But while not as gas guzzling as the Audi (the Touareg is a close second for poor gas mileage), the lack of environmental efficiency in these three styles is hard to overlook.
At the opposite end of the SUV (mini-SUV) spectrum is the Pontiac Vibe — and that’s not a bad thing. If fact, while it’s not fair to compare the Q7 with the Vibe, the restyled Pontiac offers plenty with a starting price of one-quarter of the Audi.
Certainly the Vibe doesn’t have the dominating presence on the open road like the Q7. But with gas mileage averages of 25 (city) and 33 (highway), a good share less luxury seems a good tradeoff for twice as much gas mileage.
The 2009 Vibe offers a base, 1.8-liter, 132-horsepower, 4-cylinder engine that gains additional power over the previous generation. The most expensive, upper trim comes with a 2.4-liter, 158-horsepower inline-4.
The Vibe is in its own crossover class. It’s a wagon/mini SUV with a starting price if $15,895. The performance GT model has a base price of $19,895.
There’s no doubt the SUV market is in serious jeopardy. But a few less high-end SUVs and a few more efficiently designed and environmentally sound offerings like the Vibe seems like a good step forward.