Ford to Add Four New SUV Nameplates as Millennials, Boomers, Global Demand Drive Continued SUV Growth
February 11 2016 - 12:01AM
Business Wire
- Ford will add four new nameplates to
its global SUV lineup in the next four years in segments in which
company does not currently compete
- Millennials starting families lends
strong support to ongoing SUV boom in the United States
- As baby boomers age, they’re more
likely to stay in or return to SUVs
- Increased fuel efficiency of Ford’s
newest utility vehicles makes consumers less sensitive to fuel
costs
Together, millennials and baby boomers give Ford 160 million
good reasons to expect the surge in SUV sales will continue into
the next decade.
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Growth in SUV sales is expected to continue – not only in the
United States, but around the world – and why Ford is adding four
new SUVs in the next four years – all four in SUV segments in which
the company does not currently compete.
“As members of the 80-million-strong millennial age group enter
their prime child-rearing years, a leading indicator of more SUV
sales, nearly 80 million aging baby boomers continue to prefer
their SUVs,” said Mark LaNeve, Ford Motor Company vice president of
Marketing, Sales and Service. “It’s a demographic double whammy and
it all points to one thing – more SUVs for the foreseeable
future.”
LaNeve cited recent Ford research that shows once millennials
even begin thinking about starting a family, their interest in
shopping for SUVs goes up significantly. And as many have delayed
starting families, these yet-to-form family households represent
additional SUV growth opportunities for the company.
Yet millennials alone aren’t expected to drive SUV growth –
aging baby boomers tend to stay with or return to SUVs, in part
because it’s easier to get in and out of a vehicle that sits higher
off the ground than a passenger car. LaNeve also noted that many
boomers feel younger and more active driving an SUV.
While low gas prices have contributed to the growth in SUVs in
recent years, much improved fuel efficiency in the latest
generation of utility vehicles leads Ford to believe a potential
rise in gas prices wouldn’t push consumers back to passenger
cars.
“Some SUVs now rival the fuel efficiency of V6-powered midsize
sedans from only a few years ago,” said LaNeve, “and as baby
boomers grew up with much less capable, much less efficient
vehicles, they tend to appreciate the efficiency of Ford’s newest
SUVs.” Even if gas prices go up, he added, refueling costs for
owners of modern SUVs will be much less than they were during the
last SUV boom.
About Ford Motor Company
Ford Motor Company is a global automotive and mobility company
based in Dearborn, Michigan. With about 199,000 employees and 67
plants worldwide, the company’s core business includes designing,
manufacturing, marketing, financing and servicing a full line of
Ford cars, trucks, SUVs and electrified vehicles, as well as
Lincoln luxury vehicles. At the same time, Ford is aggressively
pursuing emerging opportunities through Ford Smart Mobility, the
company’s plan to be a leader in connectivity, mobility, autonomous
vehicles, the customer experience, and data and analytics. For more
information regarding Ford, its products worldwide or Ford Motor
Credit Company, visit www.corporate.ford.com.
For news releases, related materials and
high-resolution photos and video, visit www.media.ford.com.
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Ford Motor CompanyMark Schirmer313.354.4962mschirme@ford.com
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