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
CHICAGO–(BUSINESS WIRE)–Together, millennials and baby boomers give Ford 160 million good
reasons to expect the surge in SUV sales will continue into the next
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
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.
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Ford Motor Company