Will "Crossover" Vehicles Replace Some Big Trucks?

[Bruce Levinson]

Crossover vehicles, essentially SUVs built on a car rather than truck chasis, are big sellers. As Ted Evanoff of the Indianapolis Star recently noted, "[c]ar-based crossovers are now nearing the total sales volume of traditional truck-based sport-utes..." Since the crossover vehicles are replacing sales of mid-size SUVs, "it's natural to wonder whether their growing popularity might someday erode business for their full-size cousins." The potential concern in Indiana, which has a large automotive supply industry, is that "jobs in the Indiana supplier plants could be at risk if sales of traditional trucks eventually are eroded and the suppliers fail to replace the business." The general conclusion is that the crossovers will not take sales from full size trucks.

The overall conclusion is not surprising. Crossovers are rapidly gaining in sales not because they're trendy but becuase they are better able to fulfill some consumers needs than either traditional cars or traditional mid-size SUVs. However, consumers who buy full-size SUVs or pickup trucks are not likely to switch to the smaller crossover vehicles. Ultimately, the popularity of the crossovers demonstrates the diversity of consumer transportation needs. Don't be surprised to see even more innovative vehicle types offered in the future.

Read Indianapolis Star article