Pickup trucks and sport-utility vehicles are the rage, but heed the words of Phil Novell, general sales manager for Ford Motor Co.’s Ford division, before calling them overnight sensations or worse, a fad.
“A recent phenomenon? Truck sales have been increasing on a yearly basis for 30 years,” he said of the vehicles that accounted for a mere 12.5 percent of industry sales in 1960, but now account for 44 percent of the industry total.
Trucks have moved from the farm field to the fashion world.
Trucks, which include sport-utility vehicles, have become de rigueur.
“About 15 years ago, trucks didn’t have much to offer,” said Art Spinella, vice president and general manager of CNW Marketing/Research, a Bandon, Ore., firm that studies what vehicles consumers buy and why they buy them.
Trucks were spartan as were sport-utility vehicles. Amenities usually meant a radio, often purchased at a mass merchandiser and hung from the rearview mirror.
“The market shifted in favor of trucks when trucks moved upscale like cars and added all the same features as cars,” Spinella said.
As trucks added amenities–from automatic transmission and air conditioning to stereo radios with cassettes and compact-disc players to power doors, mirrors, windows and locks–they became civilized, socially acceptable machines.
“Trucks and sport-utilities became less commercial and more consumer oriented,” Spinella said, benefiting even more from extended cab versions to haul the family just like the sedan or wagon and the recent introduction of third doors to make it easier to get kids or packages in back.
Sport-utility vehicles, meanwhile, added four doors to offer the same passenger carrying capabilities as sedans or wagons, but with a few added benefits such as four-wheel-drive capability for driving on- or off-road or in inclement weather.
“Trucks and sport-utes became fashion statements,” Spinella said.
“Growth came when the nature of the product changed,” echoed Joel Pitcoff, chief statistician for Ford Motor Co.
It is most fashionable to be seen behind the wheel of a pickup or sport-utility vehicle. In fact, in many cases, they are more fashionable than a sedan or coupe.
Sales statistics bear this out:
– Trucks outsell cars in 23 of 50 states.
– Trucks, which accounted for 43 percent of industry sales in 1995, account for 44 percent of sales in 1996 and are expected to capture 50 percent in 2000. By then one of every two vehicles sold will be a truck.
– Truck sales in the first six months of 1996 are up more than 260,000 units from a year earlier, and car sales are up 94,000.
– Trucks account for four of the five top-selling vehicles in the industry: The full-size Ford F-Series, No. 1; the full-size Chevy C/K series, No. 2; the Ford Explorer sport-utility vehicle, No. 3; and the compact Ford Ranger, No. 5. The only car in the Top 5 is the Ford Taurus at No. 4.
– Though it failed to crack the Top 5 in sales, the Jeep Grand Cherokee is the top-selling vehicle at Chrysler.
– The top-selling vehicle in the industry for the last 15 years has been the Ford F-Series truck.
– Sales of the Ford F-Series pickup last year fell only 16,000 units short of outselling the combined totals of the Ford Taurus and Honda Accord, the top two selling cars in the industry.
– General Motors Corp. dropped the Chevrolet Caprice, Buick Roadmaster and Cadillac Fleetwood full-size sedans from its 1997 model lineup to convert plant capacity to trucks.
– Lexus has added a luxury sport-utility called the LX450; Acura has added the SLX; Infiniti is adding one called the QX4; and Mercedes is preparing to launch the AAV (All-Activity Vehicle). All cost $40,000-plus.
– Toyota plans to build a truck plant in Evansville, Ind., to assemble the T-100 pickup for the 1999 model year with capacity for 100,000 units. T-100 sales run at 40,000 units annually in the U.S. but are forecast to reach 80,000. Toyota would have room to add another vehicle at Evansville, such as a sport-utility off the truck platform.
– Sport-utes are so popular Honda will add a new model, called the CR-V to its 1997 lineup, and Isuzu plans to bring back the compact Amigo for 1998.
– If the number of redesigned or all-new vehicles in the last few years is any indication of which way consumers are leaning and the industry is heading, consider the recent unveilings of the Dodge Ram pickup, and the Toyota RAV4, Suzuki Sidekick Sport and X-90, Chevrolet Tahoe, Ford Expedition, Mercury Mountaineer and soon to appear Mercury Navigator sport-utes.
To gauge the magnitude of the market, Ford, Chevy and Chrysler sold more trucks–pickups and sport-utes–last year than they did cars, and Ford has sold 100,000 trucks a month the last three months.
“Trucks are pulling buyers from mini-vans who want more style and from sedans and luxury cars who want more utility and function,” Novell said.
For the most part, trucks have become the second, third or fourth vehicle in the two-, three- and four-vehicle family. And industry observers say trucks sales have been incremental– by folks with at least one car and want to join the fashion set.
The Baby Boomers helped popularize trucks because they wanted vehicles with versatility–but not their parents’ station wagon.
In the ’80s the once workhorses became showpieces with family-sedan features–cloth or leather seats, exotic sound systems, power windows/doors/mirrors.
Trucks benefited a great deal from the advent of the extended or club cabin the late ’80s, as a seat in back meant cargo could be carried out of the elements and kids could go along for the ride.
Extended cabs account for close to 50 percent of truck sales, held back only by production capacity. And Ford and Chevy fueled extended-cab demand even more by offering a third door for easy entry to/exit from that seat.
There’s talk that within a couple of years, Detroit will start offering four-door pickup trucks, making the truck more sedan-like.
Sport-utes have enjoyed equal popularity, initially because they allowed you to sit high and see down the road, then because they offered four-wheel-drive for go-anywhere, anytime performance.
Sport-utes benefited again from the addition of four-door models in the ’90s, giving them the same access as sedans.
Based on automakers’ marketing statistics, the primary use of trucks is for commuting to work; more than 50 percent of all truck owners own three or more vehicles and only 10 percent of buyers purchase the truck as their primary mode of travel; 44 percent of those 39 or younger own a light truck versus 40 percent who own a car; 57 percent of those 44 or younger own a truck versus 51 percent a car; and 70 percent of those 49 or younger own a truck versus 62 percent a car.
The median age of the truck buyer is 42, versus 44 for a car; median income level is $56,000 for a truck versus $51,000 for a car; 77 percent are married versus 64 percent who own a car; 25 percent are female versus 46 percent who own a car; 70 percent have three kids or fewer versus 80 percent who own a car; 41 percent graduated from college versus 47 percent who own a car; and 49 percent are in managerial or technical occupations versus 46 percent who own a car.
“Income levels are higher, yet the percentage of college grads is lower because the age of owners is lower and there are few retirees,” said Pitcoff.
One number not reported was the average price of a truck versus a car. Truck and sport-ute stickers have skyrocketed in recent years as the industry took advantage of demand to boost profits.
However, the industry argues that the reason truck sales have continued to soar despite high prices and a reputation for modest, if not poor, gas mileage is that trucks are multifunctional. Trucks will haul people and furniture, sport-utes people and plywood. They can take you to work or take you on vacation. And they can take you off-road.
“You might pay more for one, but you get more function for your dollar,” Pitcoff said.
Still, price resistance has surfaced. The highest demand vehicle in the used-car market is the truck and sport-utility vehicle as buyers try to find 3-year-old versions that have absorbed some depreciation and are within reach.
“We’re seeing some defections out of sport-utes,” Spinella said. “Two years ago, 9 percent of those who owned a sport-ute and bought another vehicle didn’t buy another sport-ute. This year 20 percent of those who own a sport-ute are not buying another one when they trade in. What keeps the market going, however, is that the number of new buyers coming in is greater than the number of buyers getting out of the sport-ute market.”
Based on high new-vehicle prices, Demand for a 3-year-old truck has gone through the roof,” Spinella said, adding that this is one reason automakers are shifting toward smaller, lower-cost models, such as the less-than-$20,000 Honda CR-V, Isuzu Amigo, Jeep Wrangler and RAV4.
And Ford is developing a sport-ute off both its subcompact Escort and compact Contour car platforms, while Pontiac is working feverishly to come up with a car based sport-ute similar to its Salsa concept vehicle of a few years back. Pontiac may rely on Opel of Germany to supply it with a sport-ute car platform as might Saturn for a sport-ute conversion of its midsize sedan that will be built off the Opel Vectra in the 1999 model year. Opel is the same source for Cadillac’s new Catera sedan.
LIGHT TRUCKS AT A GLANCE
Here is a rundown of selected light trucks–mini-vans, pickups and sport-utility vehicles, now on the market with vital statistics. Not all models of any of the vehicles are listed. All vehicles listed are base models unless otherwise designated. N/A indicates not available. ** Depending on wheelbase, trim level, cab configuration, engine size, bed length and drivetrain. %%
– Vehicle
Wheelbase, Length, Engine, Transmission
Fuel economy, Base price
MINI-VANS
– ’96 Chevrolet Lumina
109.8 191.5 3.4-liter, V-6 4-speed automatic
19/26 19,890
– ’96 Chevrolet Astro
111 189.8 4.3-liter, 190-h.p., V-6 4-speed automatic
16/20 $18,335 -$20,792**
– ’96 Chrysler Town & Country LXi
113.3 186.4 3.8-liter, 166-h.p., V-6 Automatic
17/22 $30,185
– ’96 Dodge Grand Caravan LE
119.3 199.6 3.3-liter, V-6 4-speed automatic
19/25 $24,110
– ’96 Ford Aerostar
118.9 190.3 3-liter, V-6
17/23 $17,745
– ’96 Ford Windstar LX
120.7 201.2 3.8-liter, 200-h.p., V-6 Automatic
17/23 $24,465
– ’96 GMC Safari AWD
111 189.8 4.3-liter, 190-h.p., V-6
15/19 $21,446
– ’96 Honda Odyssey
111.4 187.2 2.2-liter, 140-h.p., 4 4-speed automatic
20/24 $23,560
– ’96 Isuzu Oasis S
111.4 187.2 2.2-liter, 140-h.p., 16-valve, 4 4-speed automatic
20/24 $23,495
– ’96 Mazda MPV
110.4 183.5 3-liter, V-6 Automatic
16/22
– ’96 Mercury Villager
112.2 189.9 3-liter, 151-h.p., V-6 4-speed automatic
18/21 $24,300
– ’96 Nissan Quest
112.2 189.9 3-liter, 151-h.p., V-6 4-speed automatic
17/23 $20,899
– ’96 Oldsmobile Silhouette
109.8 194.7 3.4-liter, V-6 4-speed automatic
19/26 $21,355
– ’96 Plymouth Voyager
113.3 186.3 2.4-liter, 4 3-speed automatic
18/24 $16,575
– ’96 Pontiac Trans Sport
109.8 192.2 3.4-liter, 180-h.p., V-6 Automatic
19/26 $19,394
– ’96 Toyota Previa
112.8 187 2.4-liter, supercharged 4 Automatic
18/22 $24,318
PICKUP TRUCKS
– ’96 Chevrolet S-10 Sportside 2WD
2.2-liter, 118-h.p.,4
20/27 $14,385
– ’96 Chevrolet S-10 LS Sportside 4WD
122.9 202.3 4.3-liter, 180-h.p., V-6 Automatic
20/24 $17,515
– ’96 Chevrolet C1500 Silverado
131.5 213.1 5.7-liter, V-8 4-speed automatic
15/19 $14,016 -8,429**
– ’96 Dodge Dakota Sport
130.9 214.3 5.2-liter, 220-h.p., Magnum V-8 Automatic
13/18 $16,895
– ’96 Dodge Ram 1500 Laramie SLT
138.7 224 5.2-liter, V-8 Automatic
13/17 $20,271
– ’96 Ford F-150 XLT extended cab
138.8 219.1 5-liter, 199-h.p., V-8 4-speed automatic
14/18 $19,075
– ’96 Ford Ranger XLT super cab
125.2 198.2 4-liter, V-6 Manual
17/22 $14,525 – $19,645**
– ’96 GMC Sierra 1500SLT
141.5 194.5 5-liter, V-8 4-speed automatic
15/19 $22,063 – $22,383**
– ’96 GMC Sonoma SLS
108.3 189 4.3-liter, 190-h.p., V-6 4-speed automatic
16/21 $11,290 – $14,252**
– ’96 Isuzu Hombre S 2WD manual
108.3 189 2.2-liter, 118-h.p., in-line 4 5-speed manual
23/30 $10,999
– ’96 Mazda B4000 4WD cab plus LE
125.4 202.7 4-liter, 160-h.p., V-6 4-speed automatic
16/22 $20,715
– ’96 Nissan 4×2 truck XE Regular Cab
104.3 116.1 4-liter, 134-h.p., 4 5-speed manual
22/26 $12,499
– ’96 Toyota T100 Xtracab
121.8 209.1 3.4-liter V-6 5-speed manual
17/21 $15,000 – $29,000**
– ’96 Toyota Tacoma Xtracab
121.9 199 3.4-liter, V-6 Automatic
17/19 $13,028 – $27,388**
– ’97 Ford F-150 XLT extended cab
138.5 220.8 4.6-liter, 210-h.p., single overhead cam, V-8 4-
speed automatic
N/A $24,761
SPORT-UTILITY VEHICLES
– ’96 Acura SLX
108.7 178.9 3.2-liter, 190-h.p., 24-valve, V-6 4-speed automatic
15/18 $38,000
– ’96 Chevrolet Blazer LT 4-dr
107 181.2 4.3-liter, V-6, Manual
16/21 $21,150
– ’96 Chevrolet Suburban 1500LT 4-dr
131.5 220 5.7-liter, V-8 Automatic
13/18 $32,800
– ’96 Chevrolet Tahoe LS 4-dr
117.5 119.1 %.7-liter, V-8 Automatic
13/17 $32,213
– ’96 Ford Bronco XLT
104.7 183.6 5-liter, V-8 Automatic
13/17 $26,215
– ’96 Ford Explorer Eddie Bauer
111.5 188.5 4-liter, V-6 Manual
15/20 $28,090
– ’96 Geo Tracker 4WD
97.1 158.7 1.6-liter, 95-h.p., 16-valve, 4 Manual
22/26 $15,710
– ’96 GMC Jimmy SLS 2-dr
100.5 175.1 4.3-liter, 190-h.p., V-6 4-speed automatic
16/21 $22,346
– ’96 GMC Yukon SLE 2-dr
111.5 188.5 5.7-liter, 250-h.p., V-8 Manual
14/17 $26,836
– ’96 Honda Passport LX 4WD
108.5 176.5 3.2-liter, 190-h.p., 24-valve, V-6 5-speed manual
15/18 $25,500
– ’96 Isuzu Rodeo S 2WD
108.7 176.5 2.6-liter, 120-h.p., 4 5-speed manual
15/18 $17,340
– ’96 Isuzu Trooper SE
108.7 178.9 3.2-liter, 190-h.p., V-6 4-speed automatic
15/18 $38,500
– ’96 Jeep Cherokee Sport 4-dr
101.4 166.9 2.5-liter, 4 Manual
17/22 18,133
– ’96 Jeep Grand Cherokee Laredo
105.9 177.1 4-liter, 185-h.p., 6-Automatic
15/20 $26,871
– ’96 Land Rover Discovery SE
100 178.7 4-liter, 182-h.p., V-8 Automatic
14/16 $35,350
– ’96 Lexus LX 450
112.2 189.8 4.5-liter, 212-h.p., 24-valve, in-line 6 Automatic
13/15 $47,500
– ’96 Mitsubishi Montero LS
107.3 186.6 3-liter, 24-valve, 177-h.p., V-6 Manual
15/18 $29,360
– ’96 Nissan Pathfinder SE 4WD
106.3 178.3 3.3-liter, 168-h.p., V-6 Manual
15/19 $27,549
– ’96 Oldsmobile Bravada
107 180.9 4.3-liter, 190-h.p., V-6 Automatic
16/21 $29,505
– ’96 Range Rover 4.0 SE
108.1 185.5 4-liter, 190-h.p., V-8 Automatic
13/17 $55,000
– ’96 Suzuki Sidekick Sport
97.6 162.4 1.8-liter, 120-h.p., dual overhead cam 4 5-speed manual
21/24 $19,999
– ’96 Suzuki X-90 4WD
86.6 146.1 1.6-liter, 95-h.p., 16-valve, 4 Manual
25/28 $14,999
– ’96 Toyota 4Runner Limited
105.3 178.7 3.4-liter, 183-h.p., 24-valve, V-6 4-speed automatic
17/19 $32,088
– ’96 Toyota RAV4 2-door 4WD
86.6 145.9 2-liter, 120-h.p., 16-valve, 4 5-speed manual
22/31 $16,348
– ’96 Toyota Land Cruiser
112.1 189.8 4.5-liter, 212-h.p., in-line 6 4-speed automatic
13/15 $40,258
– ’97 Ford Expedition (Eddie Bauer)
119 204.6 5.4-liter, 230-h.p., V-8 4-speed automatic
13/17 $27,910
– ’97 Honda CR-V
102.9 176.4 2-liter, 130-h.p., 16-valve, 4 4-speed automatic
24/28 $20,000 est.
– ’97 Jeep Wrangler Sport
93.4 151.8 4-liter, 181-h.p., in-line 6 5-speed manual
17/21 $16,682
– ’97 Mercury Mountaineer
111.5 188.5 5-liter, 210-h.p., V-8 4-speed automatic
14/18 $27,765
Sources: Automakers; American Automobile Association %%
