Friday, October 28, 2005

GM / Buick Buick Centieme Concept

GM places bet on crossovers

Automakers race to fill growth segment as SUV sales sputter

By Bill Vlasic / The Detroit News

Charles V. Tines / The Detroit News Jeff Godshall is senior manager of Dodge design studio. Dodge is counting on the Caliber hatchback to have global appeal. Charles V. Tines / The Detroit News Vice Chairman Bob Lutz says GM plans to grow its crossover lineup from seven entries to 14 in the next four years. Comment on this story Send this story to a friend Get Home Delivery

WARREN -- General Motors Corp. is aiming to double the number of more fuel-efficient crossover vehicles in its lineup by 2010, including the possible introduction of its first small Cadillac model in the segment.

Crossover vehicles, which marry the ride and styling of passenger cars with the functionality of SUVs, are the fastest growing segment in the U.S. market.

While GM was slow to enter the segment popularized by the Lexus RX330, Honda CR-V, Chrysler PT Cruiser and others, the automaker plans to make up for lost time with a blitz of new models to be sold under the Buick, Saturn, GMC and Chevrolet nameplates.

"It's a crossover world, and we're just living in it," GM Vice Chairman Bob Lutz said during a media briefing Thursday at the automaker's technical center.

Lutz said that GM would grow its crossover lineup from seven entries to 14 in the next four years.

With U.S. sales of crossovers expected to grow from 2.5 million this year to 3.5 million by 2010, GM expects the segment to take up the slack from shrinking sales of medium and large SUVs.

GM has about 14 percent of the crossover market, but expects to cultivate that share considerably with the new models.

"We're shooting for 20 percent (market share) by the end of the decade," said Ron Pniewski, GM's vice president of global portfolio planning.

One possible addition to its lineup is a small, futuristic-looking crossover from Cadillac, the automaker's top luxury brand.

Three of the planned crossover vehicles -- the Saturn Outlook, GMC Acadia, and Buick Enclave -- will be assembled at GM's Delta Township assembly plant under construction near Lansing.

Lutz said the new crossovers will primarily be powered by fuel efficient 4-cylinder or 6-cylinder engines, but added each "will be compatible" with versions of the company's hybrid gas-electric system under development.

GM's North American automotive board recently "made a substantial increase" in its expectations for hybrid sales in the future, Lutz said.

He added that GM is committed to building up to 1 million hybrids annually "if the demand exists."

The crossover market has exploded in recent years, and includes everything from the Chrysler PT Cruiser, Chevrolet HHR, Toyota Matrix and Pontiac Vibe to the larger Cadillac SRX, Nissan Murano and Ford Freestyle.

"Americans are falling for crossovers," said Jim Hall, an industry analyst for AutoPacific.

"Consumers want the versatility of an SUV but they want better fuel economy and a car-like ride. Many of the planned models have the potential to offer better fuel economy."

Audi, Acura, Hyundai, Ford, Jeep, Lincoln and DaimlerChrysler AG's Dodge brand are targeting the crossover market, too, with new models to boost sales.

The Acura RDX, based on the small Honda CR-V and Element platform, will go on sale next year and give Honda's luxury performance brand another crossover/SUV in addition to the MDX.

Next year, Dodge will introduce the Caliber, a wagon/small crossover replacement for the Neon.

With the addition of the Caliber and Nitro, a Jeep Liberty derivative, Dodge's SUV/crossover lineup will grow from one -- the Durango -- to three.

The five-door compact Caliber could benefit from the shift to crossovers because of its styling, said Jeff Schuster of J.D. Power and Associates.

"From our perspective, it has some of the characteristics of a crossover," said Schuster, pointing to the vehicle's hatchback and unibody frame.

Dodge is counting on the Caliber's hatchback design to have enough global appeal to be sold in markets outside the United States.

Jon Myers, a Naples, Fla., Dodge dealer and chairman of the national Dodge dealer council, said dealers are thrilled about the new products.

The Caliber falls into a completely new segment, he said.

"We tried to see what's out there like it, but there really isn't anything like it. It's that unique of a vehicle," said Myers, adding a small SUV like the Nitro was absent in Dodge's truck and minivan-dominated product lineup.

Detroit News Staff Writer Josee Valcourt contributed to this report. You can reach Bill Vlasic at (313) 222-2152 or bvlasic@detnews.com.

Honda / Acura Acura RD-X Concept Rear 3/4