Ford, who catered the 1990’s boom of SUVs, has unveiled its plans to invest more in the mid and small size SUVs set to roll out numerous models all around the globe. The small SUV segment which has seen an enormous rise than any other vehicle segment by Ford is desired to be rendered bigger, and with newer and much more advanced vehicles.
Ford has asserted its plans to release its subcompact SUV Ecosport in more than 60 countries all over the world from just 10 in the current picture. The Escape renamed as Kuga outside North America is set to make its release to Chinese markets this year. The huge investment was said to be a major bet to incorporate Ford’s plan to propagate small SUVs multifold by Jim Farley, Executive Vice President-Global Sales & Marketing, and is relied upon to pay off well. Small SUVs have helped Ford to multiply their share in the market; especially traditionally toughest markets of coastal areas like California and catalyzed expansion in markets under development. CEO Alan Murray has pushed beasts like Explorer SUV on a diet to invite more customers looking for rough terrain performance, cargo space as well as fuel economy. With wealth being grown in Indian and Chinese markets, One Ford Plan has prospered very well and is expected to continue for coming years.
People around the globe have fallen amorous for these Small Utility Vehicles. The body style seems intriguing while the fact that people can sit above traffic and pack luggage as well as people in cozily, is inviting; whilst the main factor is the fuel economy of the vehicles. Deliveries of SUVs all around the world have peaked by 35 percent since 2005, accounting for 13 million units sold per year, and will continue to out-rule other supply segments by 2017 raising their share of sold vehicles to 20 percent. The growth is greatly driven by increasing paperbacks in India and China and rising gas prices in North America.
In order to capture a big chunk of the market share Ford must make efforts to boost growth outside North America. Ford North American and European units have had profits in the SUV and small utility market in humongous amounts despite great losses in sedan and hatch segments. The orders are far beyond the production of small utilities, says Mr. Farley and that nothing has been more prolific that the boom of small SUVs. Western trends have now seemingly transported to developing countries as customers are entranced with the concept of sedan-like driveability and efficiency in fuel consumption. China proves to be the biggest opportunity as it houses demands for small, medium and large sized SUVs, and the market demand is expected to double in the next five years.
The global need is believed to be converging rapidly towards the segment of best looking vehicles with enormous power and good fuel economy following the increasing global prices of gas. As the consumer progresses in income and stature, he or she is moving towards small utilities instead of small cars in favor of large space coupled with generous features, great gas mileage, and safety for the entire family.