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SMALL SPORT VEHICLES GROWING IN POPULARITY.


Byline: Brian S. Akre Associated Press Associated Press: see news agency.
Associated Press (AP)

Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world.
 

They're the land yachts of the '90s.

Sport utility vehicles This page lists sports utility vehicles currently in production (as of April 2007), as well as past models. The list includes crossover SUVs, Mini SUVs, Compact SUVs and other similar vehicles.  are becoming bigger, more luxurious and pricey status symbols, and many drivers find they can only dream of owning one. Sticker prices for loaded mid- and full-size SUVs range from $30,000 to well over $50,000.

But while the Big Three automakers focus on larger and more profitable ``sport utes,'' Asian automakers are expanding their offerings of small SUVs for the less well-heeled.

With names like Sportage, RAV4 and Sidekick, the ``cute utes'' lack the bulk and macho image of Detroit's Grand Cherokees, Explorers and Yukons. They make up for it with a more nimble, car-like ride, better fuel economy and sticker prices in the $20,000-and-lower range.

Honda, Toyota, Subaru and Suzuki have recently introduced or are preparing to ship new, small car-size SUVs. Other automakers are watching to see how the new entries sell.

Small SUVs accounted for 8 percent of the SUV market in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  last year - 139,351 units out of total SUV sales of 1.75 million. But automakers expect big sales growth.

Toyota began importing the RAV4 in February and expects to sell 55,000 to 60,000 units this year, far exceeding its original estimate of 35,000 to 40,000.

``We are literally selling every one we can build,'' spokesman Jeremy Barnes For the guitarist of the same name, see .

Jeremy Barnes is best known as the drummer for Neutral Milk Hotel. He has also worked and recorded with Bright Eyes, Bablicon, Beirut, The Gerbils, and Broadcast. He has toured as a one-man solo act.
 said. ``We are asking for more from Japan.''

The RAV4's initial success has surprised many analysts who thought it was priced too high. A four-door, four-wheel-drive RAV4 with optional air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful.  and cassette stereo tops $20,000.

Honda's CR-V CR-V Comfortable Runabout Vehicle (Honda)
CR-V Compact Recreational Vehicle
, outselling the RAV4 in Japan, is scheduled to debut in December or January. Subaru plans to unveil its first sport utility later next year. Both are expected to be priced below $20,000.

Suzuki introduced its quirky, two-seat X-90 last year, not long after Korean automaker Kia came out with its four-door Sportage.

Until recently, Suzuki and the Jeep division of Chrysler Corp. had a virtual lock on this market niche - Suzuki with its Sidekick and Jeep with its venerable Wrangler wran·gler  
n.
1. One who wrangles or quarrels.

2. A cowboy or cowgirl, especially one who tends saddle horses.

Noun 1.
. The Sidekick, which accounts for half of Suzuki's U.S. sales, also is sold by General Motors Corp. as the Geo Tracker.

Whendi Poole, of Anchorage, Alaska, said she was looking for Looking for

In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with.
 an affordable four-wheel-drive vehicle when she bought a '96 Sidekick earlier this year to help negotiate an often icy commute to work.

``I love it. It's loaded and I get good gas mileage Noun 1. gas mileage - the ratio of the number of miles traveled to the number of gallons of gasoline burned
fuel consumption rate, gasoline mileage, mileage

ratio - the relative magnitudes of two quantities (usually expressed as a quotient)
. I like the sport utility aspect - it's got a lot of room for a vehicle this size.''

Gary Anderson, vice president of sales and marketing for American Suzuki Motor Corp., said the entry-level SUV market holds the same potential as the minivan and midsize SUV markets did in the mid-1980s.

But others say it will never be more than a niche market and will only grow significantly if automakers keep prices in the $15,000 range, where the Sidekick, Tracker and Wrangler have competed.

Analyst Maryann Keller of Furman Selz in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 noted that for a little more than the price of a RAV4, a buyer can get a loaded Jeep Cherokee, which is considerably larger and more powerful. She doesn't expect RAV4's strong sales to last.

Still, a sudden and sharp rise in fuel costs likely would siphon siphon (sī`fən, –fŏn), tube through which a liquid is lifted over an elevation by the pressure of the atmosphere and is then emptied at a lower level.  demand away from the big gas-guzzling SUVs and toward smaller ones, just as it did toward small cars in the 1970s.

The Big Three so far have largely ignored the lower end of the market and focused on high-profit, big SUVs.

Tony Richards, general product manager for Chrysler's Jeep and truck lines, said the U.S. market for small SUVs is limited and becoming crowded with the new imports.

``There's no volume there,'' Richards said. ``Basically, the segment is too small to generate large investments from the Big Three.''

Among the domestics, only Ford Motor Co. reportedly is planning a small sport utility vehicle for the United States, based on the compact Contour.

CAPTION(S):

Photo

Photo: Toyota hopes to cash in on its smaller sport utility vehicles, RAV4s.

Associated Press
COPYRIGHT 1996 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Business
Publication:Daily News (Los Angeles, CA)
Geographic Code:1USA
Date:Aug 18, 1996
Words:685
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