Maybe millennials aren’t so different from their parents after all. The generation that was brought up during a global economic crisis may simply want a little piece of stability. A new study shows that may be entirely true.
Americans aged 18-34 have become the largest group of homebuyers in the United States, according to Bloomberg, and not only are they moving to suburbia, they’re buying big SUVs, too. Not mid-size crossovers, full-size SUVs. We’re talking about the Chevrolet Tahoes, Suburbans, and GMC Yukons of the industry. This segment is up 11 percent during the first half of 2017 alone, and the study predicts another 25 percent increase by the year 2022. That’s a lot of SUVs.
This market shift is likely to play very well in Chevrolet and GM’s favor. As the market turns to utility vehicles, it also happens to be a market deeply ingrained with American automakers. When buyers think SUVs, they think Chevrolet and Ford. While Japanese, European and Korean automakers attempt to steal some of the limelight, there’s no denying the SUV is a very American thing.
Want more evidence? Take a gander at the 2018 Chevrolet Equinox, and more specifically, the 2018 Chevrolet Traverse. Both feature decidedly squarer shapes than their predecessors in an effort to mimic rugged SUVs. In fact, the Traverse is actually longer than a body-on-frame Tahoe.
Comments
Now that the latest Expedition has hit the market, GM had better nail this next generation of the current K2XX suvs. Styling and performance will be important but pricing will be critical as well. I wonder if we’ll be seeing a V6 in this next gen, especially since the current 4.3L is already at 285hp/305ftlb. The amount of money they make off these suvs is enormous so maintaining or increasing market share in this segment with the next gen of suv is probably something that GM corporate is well aware of.
not the 4.3 as we know it at least. They have been keeping the 5.3 as they can charge more for it, but my guess is that they will pour more in this market as it is. I guess the next gen 4.3 or what will replace it and the new v8’s predicted for 2019 and 2020. its a good day for cars in my mind when SUV’s are so hot! now the one thing I really need is the same incentives that we see with the trucks. chevy is advertising 17% off on certain models of the silvardo, hopefully some incentives will hit the suburban as well.
As a 29 year old, I agree with this article. My friends and I all aspire to own Tahoes and Yukons. Our parents drive them as do our bosses.
The new Expedition is rock solid competition and looks upmarket. I agree that the next generation K2XX family has got to be a homerun.
My perception, though likely skewed, is that an Expedition is a family vehicle where a Yukon/Tahoe doesn’t necessarily have to be. I think the fact that a Tahoe is perceived more rugged can be had without a third row seat is attractive.
You’re not a millennial if you’re 29 right now.
Same here Hornedfrog, albeit slightly different: most people my age who can buy a big vehicle go with a crew cab truck with tonneau cover, but the Tahoe/Burb have always been “boss’s vehicles” to me.
Looking back to the release of the current generation body on frame SUVs , GM bet big, well in advance of the competition. This has given GM the first mover advantage, leading us to the next generation full sized frame SUVs. Now Ford will start to roll out their new full sized Expedition and Navagator. Meaningful production numbers will come into play by 2018. By next year the styling for the GM’s will have a makeover.
The big question will be for the full makeover due around 2020. Will GM move into independent rear suspension for the shorter wheelbase models? Many owners still want the live axle set up for towing and durability. Third row space is the big question? Maybe a new rear IRS design will come out of this issue?
Anyway, I believe both Ford and GM will do well, having strong brand loyalty .
Ford will now be able to move away from serious discounting, which will also be good thing for GM.