- Ford utility vehicles making unprecedented gains in California; Ford brand retail utility share now more than 15 percent in the first quarter, almost 6 percentage points higher than 2006
- Ford projected to outpace the industry in global utility sales growth in key markets such as China, according to IHS; China utility vehicle sales expected to double in the next five years
- Small utilities are the fastest-growing vehicle segment globally; Ford expected to outpace industry growth over the next five years – led by the global launch of EcoSport and Escape/Kuga utility vehicles
DEARBORN, Mich., May 29, 2013 – Ford is leading a major
global shift to fuel-efficient and functional utility vehicles, growing
its sales in the last five years faster than any other Ford vehicle
segment and faster than the industry average.
“This was a major bet we made with the One Ford plan, and it is
paying off,” said Jim Farley, executive vice president, global
marketing, sales and service and Lincoln. “Utilities are helping us grow
our share in the North American market – particularly in the
traditionally difficult coastal markets – and they’re driving our
expansion in developing markets, where utility growth is exploding.”
The One Ford plan has delivered a global family of utilities,
including EcoSport, Escape/Kuga, Edge and Explorer, which will fuel the
company’s growth during the next few years.
In the United States, Ford is the best-selling utility brand.
Nowhere is the U.S. impact more evident than in California, where
Explorer retail sales are up 43 percent and Escape retail sales are up
51 percent through April of this year. A Ford analysis of Polk retail
registrations indicates the company’s two newest utilities have helped
to increase its share by 6 percentage points in California – the biggest
retail sales growth since 2006 of any non-premium brand in the critical
state.
The trend is even more promising globally, where industry sales are
expected to surge during the next five years, according to data from
IHS Automotive. With the recent global launches of EcoSport,
Escape/Kuga, Edge and Explorer, Ford is expected to see sales of its
utility vehicles grow in every market around the world.
Small utilities to lead globally
Data provided by IHS Automotive indicate global utility vehicle
sales grew 35 percent between 2007 and 2012. The segment now accounts
for more than 13 million sales annually – 18 percent of the global
automotive market.
Small utilities are leading the growth, with sales up 154 percent in that period.
In 2012, small utilities accounted for just more than 7 million
vehicles, approximately 9 percent of total global vehicle sales. The
subcompact EcoSport and the larger compact Escape – or Kuga in markets
outside North America – represent Ford’s small utility vehicle
offerings.
Further utility vehicle growth is expected in the coming years,
driven mainly by the small utility segment, which is the fastest-growing
segment and is projected to increase by 51 percent.
Ford small utility sales are projected to outpace the overall
industry, according to IHS Automotive. The increase will be driven
largely by introduction of EcoSport into key markets, including India,
China and Europe, and the launch of Kuga in the fast-growing China
market.
“Nothing has been more prolific than the global rise of the small
utility,” said Farley. “Once a trend in Western markets, we now see a
rapid convergence toward the segment globally as customers become
enamored by vehicles offering the size and functionality of a utility
coupled with car-like dynamics and fuel economy.”
In China, small utility sales climbed to more than 1.4 million
vehicles last year, up from about 120,000 units sold in 2005, according
to IHS Automotive. Ford’s launch of the EcoSport compact SUV there this
year will round out a portfolio that includes Edge, Explorer and Kuga,
which has seen sales of more than 20,000 units since going on sale in
February.
“There is little doubt the biggest opportunity for the industry is
China,” said Farley. “With the entire utility market expected to double
there during the next five years, we have a distinct advantage offering
customers in China an entire family of utility vehicles – small, medium
and large.”
In Europe, the utility segment is the only segment that has grown
since 2005. Ford increased Kuga production 8 percent this year to meet
demand, as Europe expects to produce 100,000 annual units of the small
utility for the first time. Kuga will be joined later this year by the
new EcoSport, with the larger Edge to follow. Ford recently announced
production of the iconic Explorer in Russia, marking the first time the
utility has been produced outside the United States.
Leading the way for Ford in North America is Escape, the
best-selling utility in the United States and the top-selling utility in
its segment in Canada for nine consecutive years. Customers in North
America have responded to Escape’s improved fuel economy, sleek new
design, enhanced cargo capacity and innovative technology like its
hands-free liftgate.
Consumer appeal
Small utility growth has been fueled in part by an aging global
population increasingly becoming empty-nesters. Small utilities also are
steadily growing in popularity thanks to improved fuel economy coupled
with a greater sense of security behind the wheel and increased
capability with available all-wheel-drive systems and more cargo
capacity.
With improvements in engine technology, Ford’s utility vehicles also have become even more fuel efficient. Ford’s EcoBoost®
engines can help provide up to 20 percent better fuel economy without
sacrificing the power that drivers want. The new Escape features two
EcoBoost engines – a 1.6-liter and a 2.0-liter that make up about 90
percent of sales volume.
Consumers also find utilities offer greater flexibility than most
passenger cars, with the potential for myriad opportunities and tasks –
from road trip vacations to hauling packages home from a store.
No comments:
Post a Comment