The sports utility vehicle (SUV) has recently made significant inroads in the American automotive market. Moving to approximately a ten percent share of the market, SUVs, which are rugged and designed for off-road driving, are used for trips to the supermarket and soccer matches by suburban mothers chauffeuring children, and by urban fathers commuting to the office. With sticker prices upwards of $30,000, consumers are willing to pay a considerable amount for the image of independence that these vehicles offer, particularly since most consumers will never take full advantage of the actual potential of the vehicle. This research considers the history of the sport utility vehicle, the types of consumers who are drawn to it, and the nature of the market itself.
Development of Sport Utility Vehicles
Some market analysts estimate that the industry could move from having a 40 percent share of the market (for all truck sales, including SUVS) to having a 60 percent share by the turn of the century. This represents a shift of 3 million vehicles, and presents some companies with a lucrative opportunity. Luxury cars commanded a 9.6 percent share of the passenger car market in 1990, yet had only 8.2 percent in 1995. Chevrolet estimates that most of these lost consumers moved to sport utility vehicles and trucks with prices well over $30,000 (McElroy 156).
In order to boost market share, changes will need to occur in the sport utility vehicle market. For example, while the ride and handling of sport utility vehicles are much better than in the past, they are not good enough yet to justify the market boost. These vehicles ride well on smooth pavement, but on rough pavement, especially on turns, they are inadequate. Rear axle hop is enough to move these vehicles over half a lane. One solution to this is to have the next generation of domestic luxury sport utilities use five-link rear suspensions with dual rate coil springs; agg...