CUV Sector Booming

Cross/utility vehicles will leapfrog four segment groups to become the highest-volume sector in North America in terms of production by 2009, according to Ward's AutoForecasts.

Sales, including imports, should follow suit. Output of CUVs is forecast to account for 12.4% of North American light-vehicle production this year, up from 10.9% last year and 9.0% in 2004.

By 2009, annual CUV output will equal nearly 21% of light-vehicle production, or about one in five vehicles assembled.

Right now, pickups are the leading segment group in terms of production. Pickup output totaled 3.562 million in 2005, or 21.1% of the light-vehicle total.

The Middle Car group — mid-priced sedans and performance cars — follows, with 3.22 million units, or 20.5% of 2005 output.

Next in 2005 were SUVs, at 14.6% of the total, and small cars, at 13.2%.

CUVs will remain in the No.5 slot this year, then surge past small cars and SUVs in 2007. The sector will surpass Middle Cars — which is forecast for a sharp decline that will see it fall behind pickups in the production ranking — in 2008, then edge out pickups in 2009.

Annual CUV production will reach 3.5 million in 2009, with more growth predicted through the end of the forecast period in 2013.

The number of CUV nameplates also will grow significantly during that period, from 43 at the end of last year to 73 in 2009.

Domestically produced versions will climb from 24 in 2005 to 45 by the end of 2009. Sales of locally built CUVs should grow to roughly three-fourths of the segment group's total by 2009, from 41% in 2005.

Imports will increase both in number and volume, as well, but not as quickly.

Assuming demand rises through the decade, CUV deliveries easily should top 4 million by 2009, compared with 2.5 million in 2005, making it the largest North American segment, based on sales.

Production of CUVs will pick up later this year. General Motors Corp. begins output of its new Lambda-platform vehicles at a new plant near Lansing, MI. Ford Motor Co. launches production in Oakville, Ont., Canada, of the new Ford Edge and Lincoln MKX in the third quarter.

Also in the third quarter, Chrysler Group adds the new Jeep Patriot at Belvidere, IL, and Honda of America Mfg. Inc. starts first-time North American production of the imported CR-V in East Liberty, OH.

In August, CAMI Automotive Inc., the Ingersoll, Ont., Canada, joint venture between General Motors and Suzuki Motor Corp., begins output of the '07 Suzuki XL7, which was an SUV in its previous iteration.

Further ahead, Ward's AutoForecasts pegs the Toyota Highlander, currently produced in Japan, for its first North American sourcing in 2008, when Toyota Motor Mfg. North America Inc. expands production capacity in the U.S.

In 2009, North American factories will have available straight-time capability to build 3.6 million CUVs annually, or 20% of total projected light-vehicle capacity of 18.0 million.