The paper adds…that over the next four years, 73 of the 231 new vehicles that automakers plan to introduce will be crossovers, according to a report in April from Bank of America Merrill Lynch. IHS Automotive Senior Automotive Analyst, Stephanie Brinley says “We are going to get to a point where the pace of growth in SUVs moderates, but what we are looking at is a world where people prefer a crossover or a utility vehicle.”
Several factors are fueling demand for SUVs and Crossovers…including cheap gas. Plus, the Detroit Free Press says they’re more fuel efficient than their predecessors and many consumers prefer the higher riding profile…plus, they offer more space.
Of course, no one expects cheap gas to last forever…and the low interest rates we’re seeing might not remain low. The federal reserve board is expected to raise interest rates when it meets today and tomorrow.