Automakers hoping buyers would switch from full-size SUVs into smaller crossovers may be shocked: they're not. Sales of crossover vehicles in July 2008 were down eleven percent from last July, marking the third straight month of falling CUV sales in the U.S.
Crossovers, designed to offer some of the features and amenities offered in big SUVs but in a smaller, more fuel-efficient package, are lagging mostly due to price. For instance, Ford's Edge starts at $25,735 - nearly $6000 more than the Escape compact SUV. Likewise, the Saturn Outlook retails at $29,455, while the smaller Vue SUV (which also returns better mileage) retails for $7000 less.
Customers already losing money on trading in their large vehicle may not be able to swallow yet another price premium, and are simply jumping into smaller, fuel-efficient sedans as opposed to crossovers.
Source: Wall Street Journal