Crossover craze continues

Sure you like the legroom that your sport-utility vehicle provides, but do you really need the monstrous size or off-road capabilities it offers? If you're like the fastest-growing segment of vehicle buyers in the country today, you don't, and you may be the perfect candidate for a crossover -- a vehicle with the qualities of a car, a minivan and an SUV all rolled into one.

While many consumers don't actually think of the word " crossover" when shopping -- the term is largely a catch-all phrase created by analysts and media watchers to describe a vehicle that has been difficult to categorize -- the number of people actually purchasing them is rising dramatically.

In fact, crossovers are the largest growth segment in the industry right now, according to automotive market research firm IRN, Inc. In 2004 nearly 1.9 million crossover vehicles were sold in the United States, up from 1.7 million in 2003 and 406,000 in 1998, the firm reports.

That number is expected to grow, says Erich Merkle, senior auto analyst with IRN. "We're forecasting annualized growth of over 10 percent" for crossover vehicles, he says. Compared to the industry average growth rate of 1 percent to 2 percent, crossovers represent an industry force to be reckoned with.

Jeff Brodoski, auto analyst for J.D. Power and Associates, agrees.

"It seems in general that the crossover market is not at its peak, but it's getting closer to the peak of its popularity, which is going to equate to more crossovers coming out in the next one to three years," he says.

But one of the unique things about crossovers is the fact that they're coming from all types of brands and segments of the market, Brodoski says.

PT Cruiser Click image for larger view

If price is your big concern, crossovers run the gamut from entry-level models such as the Chrysler PT Cruiser with a manufacturer's estimated price starting from $13,995, all the way to luxury vehicles such as the Infiniti FX45 with a manufacturer's estimated price of $45,250.

The shapes and sizes of crossover vehicles vary greatly, meaning you'll be hard pressed to find any two models exactly alike. However, most crossover vehicles are built on the frame of a car rather than the frame of a truck.

Industry analysts offer a variety of reasons for crossover appeal. In an age where gas prices frequently rise to stratospheric heights, crossover vehicles do not require as much fuel as larger SUVs. They also handle more like cars, making them easier to drive. Manufacturers also tend to make crossover vehicles a little more stylish than their bigger truck-based SUV counterparts.

Yet for those who want the capability to carry many people without feeling the crunch of tight space, the crossover vehicle is able to provide the roominess, as well. Plus, crossover vehicles tend to have higher seating arrangements than cars -- giving drivers the ability to see over traffic.

Crossover vehicles, however, do not have the off-road driving capabilities that larger truck-based SUVs have, but many consumers are finding that they rarely use those features anyway, Merkle says.

"The biggest factors for the crossover are it gives you the cargo capabilities of an SUV as well as being able to haul people at the same time," says Brodoski. "But it doesn't give you that truck-like ride. It doesn't have the rough ride and it usually has a lower stance which means it's easier to get into the vehicle."

While industry pundits and media organizations have been concerned with categorizing crossover vehicles by their frames and other features, consumers are more concerned with the practical benefits.

"I don't think that the consumer is really ultimately aware of whether this is a truck platform or more of a car-based platform," says Merkle. "For the most part, consumers are saying, 'Hey, this looks good, I like the utility of it and I like the way that it feels. I like the way that it drives and it's very comfortable.' In many respects you don't necessarily always get that same feeling with a traditional truck-based product."

The emergence of the crossover vehicle started with Japanese manufacturers.

"Japanese manufacturers didn't have a body-on-frame truck platform," says Merkle. "So instead of using your traditional truck platform, they used car platforms, they used minivan platforms -- they used what they had instead of developing a whole new unique platform to build a truck-based product."

Lexus RX330 Click image for larger view

When these vehicles started to catch on with the public, Japanese manufacturers started to make improvements to them, such as making them a little larger, and a new breed of vehicles was born, such as the Honda Pilot, the Honda CRV, the Toyota Highlander and the Lexus RX330.

The success of Japanese-manufactured crossover vehicles has in fact put American manufacturers in the position of having to play catch up. Merkle points to American-made truck-based SUVs such as the Ford Explorer, Dodge Durango and Chevrolet Trailblazer as vehicles whose sales have been eaten away, partly due to the success of crossover vehicles.

At the very least, crossovers are making owners of larger truck-based SUVs take a second look before buying their next vehicles.

Angela Polk of Bowie, Md., has driven a Ford Explorer since 1998. While she is happy with her Explorer, she says she will definitely test drive a few crossover models before making her next purchase decision.

"I like the SUV because of the storage space," she says. "But some of them are very big, so if I can get the same feel and more storage space than a car has in a smaller vehicle, I would consider it."

For consumers who want to know what's on the horizon for the crossover market, expect more offerings from the Big Three automakers -- GM, Ford and Chrysler -- in coming years. Ford even has plans to change its 2006 Lincoln Aviator from a truck-based vehicle into a car-based crossover vehicle.

-- Posted: Feb. 15, 2005