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Re: Ecosport... Crossover boom moves downscale; Toyota plans to join stampede

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Biker16

Biker16

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Crossover boom moves downscale; Toyota plans to join stampede

Mazda CX3

http://www.autonews.com/apps/pbcsi.dll/galleryimage/CA/20141118/LA_AUTO_SHOW/111809996/PH/0/2/PH-111809996.jpg&Maxw=630&cci_ts=20141121123700

 

Honda HR-V

http://www.autonews.com/apps/pbcsi.dll/storyimage/CA/20141121/OEM04/311219964/AR/0/fsfsfaf.jpg&MaxW=622&cci_ts=20141121174600

 

Fiat 500x

http://www.autonews.com/apps/pbcsi.dll/storyimage/CA/20141121/OEM04/311219964/V2/0/12345678.jpg&MaxW=622&cci_ts=20141121174600

 

Mark Clothier

Automotive News | November 21, 2014 - 12:01 am EST

LOS ANGELES -- Honda Motor Co., Fiat Chrysler Automobiles NV and Mazda Motor Corp. all introduced smaller entries in the booming crossover market this week at the Los Angeles Auto Show as the industry seeks younger buyers.

Honda's new HR-V, based on the subcompact Fit, expands the brand's light-truck lineup as a smaller alternative to the popular CR-V. Fiat showed the 500X, a vehicle that's a step up in size for the Italian brand, for the first time in North America, and Mazda debuted its CX-3.

Compact SUVs and crossovers have grown to 11 percent of the U.S. new-car market from 7 percent in 2007, according to Kelley Blue Book.

Now a group of even-smaller models is emerging as the vehicles shown this week join the Buick Encore and Nissan Motor Corp.'s Juke, which have combined for more than 75,000 U.S. sales this year through October.

And Toyota Motor Corp. indicated it will join the mix as well.

At least one analyst said Honda may win the most customers.

"The subcompact crossover segment is about to explode, and no one will be surprised if Honda's entrant becomes one of the best sellers in its class," said Akshay Anand, an analyst with KBB. "Much has been said about the subcompact segment, but if the Accord, Civic and CR-V are any indication, the HR-V should do just fine."

Car buyers

Subcompact SUVs will most likely steal buyers from compact cars, Alec Gutierrez, an analyst with KBB.com said.

The HR-V, for example, is more likely to lure customers from the Civic or Fit -- people looking for a little more storage space -- than from the larger CR-V, he said.

"Gas prices are contributing to the demand, but I think you're seeing consumers shift more toward want-based shopping as opposed to need-based," he said. "That says consumer confidence is up and folks feel more comfortable with where they're at."

Fiat, the Italian brand known for its tiny 500, is offering the larger, brawnier 500X to compete with the Juke and Kia Motor Corp.'s Soul.

"This is our answer to the American market," Fiat's Francois says. "This is what happens when Italians cross over."

With four doors and roomier rear seats than its 500, the crossover is a Fiat tailored for the U.S. market, Olivier Francois, the brand's chief, said Thursday at a press conference at the auto show.

"This is our answer to the American market," Francois said. "This is what happens when Italians cross over."

The 500X is a mechanically similar to the Jeep Renegade, which was shown earlier this year at the Geneva and New York auto shows. The two are built at the same factory in southern Italy and share about 40 percent of their parts.

'Young Urbanites'

Mazda said its CX-3, which joins the CX-5 and CX-9, combines the design, packaging and responsive driving that appeals to "young urbanites."

Lifestyle changes are driving this evolution of the crossover market, Jim Lentz, who runs Toyota Motor Corp.'s North America region, said in an interview this week.

"Generation Y'ers are undergoing changes in their lifestyles," he said. "They're getting older, they're getting higher-paying jobs, they're starting families and moving out of small sedans. They've always wanted new vehicles with more versatility and small SUVs may have grown a little large."

Toyota doesn't have an entry in the segment but it's paying close attention, he said.

"It's obviously a segment we have to be in," Lentz said. "We'd love to be first to market, but I don't think we've missed the train yet."

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Ron W.

Ron W.

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This is our answer to the American market," Fiat's Francois says. "This is what happens when Italians cross over."

 

With four doors and roomier rear seats than its 500, the crossover is a Fiat tailored for the U.S. market, Olivier Francois, the brand's chief, said Thursday at a press conference at the auto show.

"This is our answer to the American market," Francois said. "This is what happens when Italians cross over."

 

 

Which redundant wrote this thing ............ sheesh.

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jpd80

jpd80

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If anything, those first two vehicles look more like raised hatches than a Compact Utility like Ecosport.

I have a hunch that a severe shortage of 1.0EB engines is behind the restricted product roll out.

Sure, you could add production to Mexico alongside Fiesta but two things spring to mind with that:

1) Fiesta sales have started to flag badly with falling gasoline prices, should Ford be looking at subcompacts?

2) a new common platform for Compact and Subcompact is on the way, should Ford wait and reconfigure plant then?

 

Not against Ecosport at all as I think there's a lot more sales there than even Ford's chiefs can imagine,

probably a better future for it in North America than a subcompact like Fiesta given the easing of gasoline prices..

Edited by jpd80
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Edstock

Edstock

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1) Fiesta sales have started to flag badly with falling gasoline prices, should Ford be looking at subcompacts?

 

Should Ford be looking at a new Fiesta to replace the aging ultra-slant-wedge styling theme which has become passé?The A-1 here is a good indication of the direction of things:

 

80271881669175423.jpg2015-Ford-Fiesta-Side1.jpg

 

 

 

With export considerations, One Ford engineering considerations and Rest Of World market needs for the Fiesta-size platform, perhaps there are opportunities, depending on quality of design, and of course, attitude.

 

All of this is why Ford should be looking at subcompacts. :)

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jasonj80

jasonj80

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Given the price of gas and tepid Fiesta sales I don't see this as a growing segment right now. That could change and Ford needs to be ready but I don't see it as a priority over the next 12-18 months.

The SUV is where the subcompact segment is going and has been. Millennial's don't have the same desire in a car than other generations, they want small because it gets around a city easy (where they are moving) and is easy to park. Gas mileage isn't the main reason they are buying small, they are buying small because it fits their lifestyle, but they still want Tech options. Just because they could get an Escape for the same money they won't automatically go there because "bigger is better"

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bzcat

bzcat

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Current EcoSport won't be visiting the US... there is no suitable production sites to source the car for US market.

 

Brazil - production maxed out for local markets

India - production maxed out for local markets

Thailand - production maxed out for local markets and Europe

China - not gonna happen

 

Ford made the decision to skip the car for this generation because of production issues and because the market was unproven back in 2011 (when the decision had to be made). The only offering in the US market at that time was Mini Countryman and it was a premium priced product.

 

The next generation will 100% guaranteed to be in the US. Ford will use the time to really hit the product development target. Just to echo what Richard said before...

 

Explorer wasn't the first midsize 4 door SUV

Expedition wasn't the first fullsize 4 door SUV

Escape wasn't the first compact 4 door CUV

Edge wasn't the first midsize 4 door CUV

 

I wouldn't really worry about Ford missing the mark when they finally decides to join the party.

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ds91776

ds91776

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I would include the Kia Soul as the main driver behind the emergence of this corner of the market...and a in a sense, the PT Cruiser was a forerunner too. Ford should have offered the second generation EcoSport here, no question. Besides, wouldn't the North American Fiesta's plant be suitable for production? Heck, They could leave the Brazilian plant to produce EcoSports for South America while the Mexican plant made EcoSports for North America ( including Mexico ). My only "beef" would be that Ford needs to change the name. "EcoSport" sounds really cheap to me and would be weird being sold alongside "EcoBoost" engines. Anyway, a North American spec "EcoSport" could be offered with the Focus' 2.0I4 as standard with the 1.5I4 EcoBoost as an option. I bet Ford could sell 50-75,000 of these things in the US a year easy...maybe more, without impacting Fiesta, Focus, or Escape sales...meaning I bet it would be a net-gain in sales.

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akirby

akirby

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It was a major leap for Americans to embrace C sized vehicles in volume and at higher price points. I think it will be tougher to do that with B sized vehicles.

 

I think the appeal of the Juke and Soul is the styling and the cheap price, not the size.

 

I think Ford wants to see where this market is headed including the impact on C sales before it commits factory space in Mexico.

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bzcat

bzcat

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It was a major leap for Americans to embrace C sized vehicles in volume and at higher price points. I think it will be tougher to do that with B sized vehicles.

 

I think the appeal of the Juke and Soul is the styling and the cheap price, not the size.

 

I think Ford wants to see where this market is headed including the impact on C sales before it commits factory space in Mexico.

 

It is easier to convince buyers to pay a premium in any segment for the CUV vs. sedan or hatch so I think that's why the push to get these B-segment CUVs on the market. Look at the dynamics of C-segment CUV vs. midsize car prices... they tend to be similar (e.g. CR-V and Accord selling for about the same money, and much higher than Civic) so the CUV is driving more profit to the C-segment platform. Similar dynamics is going to happen with the B-segment.

 

B-segment CUV is already selling at premium price relative to B-segment cars. Buick Encore ATP is $24k, not in the mid teens of Chevy Sonic. Some of that is due to Buick being a more content heavy premium vehicle but I'm sure Chevy will be getting Cruze money for Trax vs. Sonic as well. And I'm sure Honda will be getting Civic money for the HR-V rather than Fit prices. Ditto Mazda CX-3 getting Mazda3 money instead of Mazda2 prices.

Edited by bzcat
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fuzzymoomoo

fuzzymoomoo

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Soul's ATP is a shade under $19k. I'd like to know where you can get a free one ;)

I hear radio ads for it locally on a daily basis. Deal applies for that and either rio or forte, I can't remember

 

My mom had the audacity it suggest I take them up on that deal, while I'm wearing my UAW/Ford hoodie.....

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probowler

probowler

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It was a major leap for Americans to embrace C sized vehicles in volume and at higher price points. I think it will be tougher to do that with B sized vehicles.

 

I think the appeal of the Juke and Soul is the styling and the cheap price, not the size.

 

Because Wigger Mice...

 

new-kia-soul-ad-campaign-dancing-hamster

Edited by probowler
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630land

630land

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While there are young adults moving to dense urban areas, most of the US is suburban in nature. Austin TX, the hipster capital is a country town compared to Manhatten/Brooklyn, and more affordable.

 

But also, 18-29 y/olds today are not the same as 1998 era. They aren't into 'hot compacts' like WRX/Civic Si as much as 40-something Gen-Xers, who long for the 1990's. Younger buyers like a Jeep Wrangler to get around, and couldn't care less about 0-60, Auto-Cross and "twisties".

Edited by 630land
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