The fate of the SUV is alive and well according to Ford Motor Company. Despite the rising popularity of electric cars like Tesla and compact cars like Fiat, America still wants’s their four-doors, all-wheel drive monstrosities. Over the course of the next few years, the company will be increasing their production of SUV’s by introducing four new nameplates. They predict SUV demand will soar. Here are a couple reasons why.
MILLENIALS ARE GROWING UP AND STARTING FAMILIES
The young adult generation known as “millennials” are growing up and it seems they’re not that different from their parents after all. Millennials are often said to be edgy, and progressive. A generation that will lead the way of change in America. They will be environmentally conscious, politically aware and fluent in technology. Whether or not any of that is true, Ford believes that they will want SUV’s just like everyone else. As a generation of 80-million or so enters their childbearing years, it’s only logical to assume they will opt towards SUV’s and crossovers over their Prius. Ford hopes to capitalize on that logic.
OIL PRICES ARE GOING DOWN
For the first time in what seems like eons, the price of oil in America is actually decreasing. When it seemed like prices were going up infinitely, consumers were rapidly trading in their Hummers and pick-up trucks for something a little more economical. These green vehicles certainly cost more than those of the fossil fuel variety, but would save money on fuel. Now that fuel is relatively cheap again, people will likely go for something more affordable like a Ford instead of a Tesla. Electric cars are just not something the common American can purchase easily, and Ford’s reputation of being reliable and cost efficient give them the advantage. In addition, Ford dominates the competition in terms of fuel efficiency. Even if the prices of fuel do spike suddenly, Ford will be insensitive to those changes.
