US: Ford predicts SUVs will dominate the auto market in the near future

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The demand for sport utility vehicles will account for 40 percent of the US auto market by 2020, according to Ford. According to Ford Motor, the demand for sport utility vehicles will account for two in five new cars sale in the US by 2020. Low fuel prices, low interest rates and increasing incentives drove the consumers towards buying more SUVs, 5 million SUVs deliveries being predicted for 2015 by Kevin Schad, brand manager for the Ford Escape. He also said sales of SUVs and sport wagons are almost a third of the auto market in the country. “The two largest cohorts in America are evolving into different life stages, which, ironically, require the same vehicle,” Schad commented. “Millennials are evolving into a life stage where they’re starting to settle down and have families and they need more space in their car. Baby boomers are looking for a vehicle that supports the reality of some of their physical disposition.” The demand increase for SUVs have caused a slowdown in other segments. Family sedans and compact models were considered the core of the market a few years ago. “Well, that was thrown out the window when the compact SUV segment surpassed both of those segments last year to emerge as the No. 1 segment in the industry,” Schad said. “And we haven’t seen that growth slow at all this year.” The most important segment at this moment, with the highest growth, is the compact SUV one. That segment has really taken off since the economic downturn and industry recovery in 2008 and 2009 and doubled sales,” concluded Kevin Schad. Via Bloomberg