JD Powers: Consumers Not Convinced That Crossover SUVs Match Usefulness of SUVs

First Snide's Remarks:

One benefit of being old and still having a memory is that I can put some things in perspective that young fellers and gals can’t.

Let’s see first there was a vehicle model called a station wagon which fell out of favor even though, for a family it was a second best to a Chevrolet Carryall or the International Harvester Travelall...then wagons went away when it became not really too cool to be voted as the person most likely to drive a station wagon in your high school yearbook...

Wagons were (and still are) practical vehicles for carrying things like kids, dogs, groceries , carriages, playpens, cribs, strollers and all the other assorted stuff a family needs to tote with them...but this yearbook thing slowed sales and soon the consumer’s choice of station wagons got smaller and smaller until the choice went down from a wagon version of almost every model of every marques to just a handful of wagon hanger’oners... But the need was still there and a practical family vehicle soon morphed into the mini-van which was popularized and mainstreamed by Chrysler...and the rest was history...

But, as the winters in America got worse and the snow piled up higher and higher each winter preventing the family mini-vans from reaching the supermarket, the old Carryall and Travelall and Jeep Cherokee all men’s cars became family friendly SUV’s which allowed Mom’s who really needed interior room in their vehicles to still be cool and not have to drive a mini-van....whew, hang on I’m almost there...

And as competition in the SUV and Mini-Van segments became intense along came the “crossover” from Chrysler who called its new Pacifica a “segment buster”...just like their mini-van was...

This new segment was presented to journalists at the Detroit Auto Show a few years ago but quiet frankly it sure looked like a station wagon to all of us over the age of 30...but hey if Chrysler wanted to rename the station wagon they sure could try...but why?

And now we see that the Mom’s out there have rebelled and have decided that if they are going to tote around a group of kids etc and the price of gas is of no concern to them, why crossover?...that’s what we asked years ago and have now been answered.

WESTLAKE VILLAGE, Calif., Oct. 19, 2005 -- While car-based crossover SUVs are becoming increasingly popular, manufacturers still have work to do in convincing SUV shoppers that crossovers are as functional and rugged as their traditional SUV counterparts, according to the J.D. Power and Associates 2005 Online Vehicle Image and Positioning Study(SM) released today.

The study focuses on the styling and image perceptions of 10 of the most recently released crossover models compared to five traditional SUVs. Crossovers, which are defined as SUVs built on car-based platforms, are increasingly gaining consumer acceptance. According to retail new-vehicle sales data from the Power Information Network, a division of J.D. Power and Associates, crossover SUVs captured a 46.1 percent share of the total SUV market through September-up from just 16.5 percent in 2000.

The study finds that among consumers who would consider purchasing an SUV, many perceive crossover SUVs to be less rugged and functional than their traditional SUV counterparts. In fact, perceptions of functionality and ruggedness are particularly important for crossover SUV sales, since ratings of functionality and ruggedness tend to correlate highly with those consumers who would consider a crossover SUV.

"While there may be increased emphasis lately on better fuel efficiency and smaller packaging, the perception of strength and function is still very important to consumers thinking about purchasing a crossover SUV," said Chance Parker, executive director of product and research analysis at J.D. Power and Associates. "It is less of an issue with respect to traditional SUVs, given their generally higher level of rugged and functional styling to begin with. However, among crossover SUVs, it becomes an important positive differentiator."

  Important highlights of the study's findings include:

   *  Among the 10 crossovers evaluated, the Volkswagen Touareg and Cadillac
      SRX receive particularly high marks for overall styling.  Women, in
      particular, like the styling of the Touareg, while the SRX is often
      perceived by consumers as being modern, established and upscale.

   *  Despite being the most recently introduced model in the study, the new
      Mercedes Benz R-Class receives a high level of brand recognition and
      is perceived to be quite luxurious.  However, it does not receive high
      ratings from consumers for overall styling, largely as a result of
      somewhat negative perceptions of its exterior design by women.

   *  Subaru's B9 Tribeca, which is also very new to the market, has low
      levels of brand recognition as well as low ratings for overall styling.
      However, men react much more favorably to the model than do women,
      perceiving it as an exciting, sporty and trendsetting new design.

   *  Though its ratings for overall exterior styling are not high, the
      Nissan Murano is perceived as a particularly trendsetting crossover
      SUV and is often associated with being a younger person's vehicle.  It
      also scores well among women, who are likely to view it as a vehicle
      that can be "shown off," and is perceived to be high tech, modern and
      flashy.

   *  Respondents, especially women, particularly think of the Ford
      Freestyle as very functional.  However, it does not tend to connect
      with consumers in many other respects, and is not associated with
      being sporty, modern, exciting and high tech.

The 2005 Online Vehicle Image and Positioning Study is based on 1,530 evaluations from 840 SUV considerers for the following models:

   Crossover SUVs                       Traditional SUV Benchmarks

   Cadillac SRX                         Ford Explorer
   Chrysler Pacifica                    Jeep Grand Cherokee
   Ford Freestyle                       Land Rover LR3
   Infiniti FX Series                   Nissan Pathfinder
   Lexus RX Series                      Toyota 4Runner
   Mercedes-Benz R-Class
   Nissan Murano
   Subaru B9 Tribeca
   Toyota Highlander
   Volkswagen Touareg

Vehicle photos, profiles and buyer demographics of crossover SUVs, which include average down payment, average income, age distribution and favorite activities, are available at the J.D. Power Consumer Center: http://www.jdpower.com/cc/auto/content/buyerprofiles/index.asp

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education and BusinessWeek. The Corporation has more than 300 offices in 40 countries. Sales in 2004 were $5.3 billion. Additional information is available at http://www.mcgraw-hill.com/.