It’s all about large, comfortable sedans in 2006

Summer is barely over, but the auto industry is already speeding its way into next year, lifting the curtain on 2006 models in showrooms across the country.

Some of the hottest new stuff on four wheels — such as the new-generation Dodge Charger and Honda’s innovative Ridgeline pickup — are already on the streets, with many more highly anticipated models soon to follow.

Setting new trends and reinforcing a few others, the 2006 lineup reflects a changing marketplace and evolving technology, offering all-new models and total redesigns in several categories.

Buick Lucerne

But the most dramatic shift is the continued move by domestic manufacturers from full-size SUVs toward large sedans, said Paul Taylor, chief economist for the National Automobile Dealers Assn., located in McLean, Va.

“Consumers are rediscovering the virtues of spacious passenger sedans, which give greater comfort and easier handling than big SUVs, but with plenty of interior and cargo space,” Taylor said. “It was said that 2005 was the year of the car. Well, it was certainly the year of the large car, and 2006 looks about the same. Large sedans have posted a year-to-date sales increase of nearly 35.4% (of the nearly 5 million sold in 2005), while full-size SUVs are down 7.3%” (to 1.7 million).

The all-new Dodge Charger muscle car is positioned to keep the trend sizzling, he said. Back from the ’60s as a new four-door sedan, the 2006 Charger has power, room and a macho identity with a retro flavor — all popular qualities in today’s marketplace.

Its optional 5.7-liter HEMI V-8 certainly won’t hurt the Charger’s chances, said Craig Love, product team vice president at Chrysler Group.

“With proven rear-wheel-drive technologies and the legendary HEMI engine, we’re able to produce a modern muscle car with everyday functionality,” Love said. “The Dodge Charger offers a perfect blend of performance, safety and flexibility that today’s market demands.”

Several factors are driving the large sedan market.

Spacious and comfortable vehicles that get, say, 27 to 29 mph on the road compared to an SUV’s 15 to 19 mph are mighty appealing when gasoline is hitting $3 a gallon, Taylor said.

Manufacturers are responding to the demand for roomy sedans with all-new models, including the Lincoln Zephyr and Buick Lucerne, as well as larger redesigned versions of existing sedans. BMW’s 3 Series and the Hyundai Sonata are two examples of cars that bulked up for 2006.

Less spectacular but with more long-term significance, the rise of crossover utility vehicles (CUVs) portends a spike that might well continue upward for several years to come, Taylor said. Strong year-to-date sales growth of nearly 19% for CUVs is most likely just the beginning. Roughly 1.5 million crossovers have been sold so far in 2005.

Lexus GS 450h

“Most of the new model introductions are crossovers, like the Hummer H3 and Jeep Commander, which look to be very successful,” Taylor said. “The attraction to crossover utility vehicles is much the same as large sedans. They’re smaller than full-size SUVs and get better mileage, but they offer plenty of comfort and versatility. They tend to appeal to younger consumers as well.”

Every manufacturer wants to nail down that coveted demographic, and crossovers have many of the elements that young drivers crave — not the least of which are off-road capability and plenty of attitude. One of the most anticipated new CUVs, the Jeep Commander combines four-wheel-drive with cool retro appeal, said Jeff Bell, vice president of Jeep.

“The past is the inspiration for our future,” Bell said. “The Jeep Commander succeeds because it blends the Jeep brand’s unrivaled heritage with 21st century technology.”

Clearly designed for on-road urban adventures, Chevrolet’s new HHR crossover offers a throwback look somewhat similar to the popular Chrysler PT Cruiser, along with a versatile interior that opens up a world of road trip possibilities. Look for the HHR — which stands for Heritage High Roof — to inspire plenty of personalized customization, said Lori Queen, General Motors vehicle line executive for small cars.

“The HHR is what you want it to be — whether you’re hauling band equipment around the country or hauling your friends across town,” Queen said. All indications point to significant future growth in the crossover utility market with many more new models to come, including the 2007 Toyota FJ Cruiser, an entry-level off-road CUV that taps into the retro-style trend.

The best way to spot future trends is to look at concept vehicles that major manufacturers exhibit at auto shows — and a huge majority are crossover designs, Taylor said.

“Keep in mind that concept vehicles show the direction that companies are setting for the next seven to 10 years,” he said. “Roughly 70% of all concepts are CUVs, which represents a big commitment to that segment. It shows that manufacturers are anticipating annual double-digit growth in CUV sales for the next decade or so.”

Pickup trucks are doing well for many of the same reasons that are driving sedan and CUV growth. Perhaps most significantly, many new pickups, most notably the Lincoln Mark LT, have more spacious, luxurious interiors and increased storage space to go with traditional pickup hauling capacity.

One of the most innovative new pickups, Honda’s all-wheel-drive Ridgeline, offers a sedan-like cabin with two rows of seats and climate control, along with versatile use of cargo space. Its steel-reinforced cargo bed can carry up to 1,100 pounds, and beneath it a lockable trunk provides an extra 8.5 cubic feet of storage.

“It’s a powerful pickup with lots of interior space and comfort,” Taylor said. “And it has all the hauling and off-road benefits of a pickup, along with extras like a tailgate that can swing open from the side for easier access. That type of design innovation will help drive the pickup market.”

The rising cost of gas has sparked a small uptick in compact sedan sales after decades of decline, but larger hybrid gas-electric vehicles, such as the new Lexus 400h and Mercury Mariner hybrid SUVs, are far more attractive to consumers who want to save at the pump.

Sticker shock and limited production have so far stunted their sales growth, but that should change as technology evolves, Taylor said.

“With hybrids you have a gas engine and an electric motor, so production is obviously going to be more complicated and expensive,” he said. “Consumers love an SUV like the Ford Escape hybrid that gets more than 30 miles per gallon in city driving.” Hybrids cost from $3,000 to $4,000 more than their gas-only equivalents. Once the difference gets down to $1,500 to $2,000 within a few years, look for the market to take off, Taylor said.

Mercury Mariner hybrid SUV

Lexus is about to break new ground with the world’s first hybrid luxury sedan, the rear-wheel-drive GS 450h, as an early 2007 model. It’s the next step in the evolution of the hybrid, said Lexus vice president of marketing Mark Templin.

“We’ve applied our formula of no-compromise engineering to a luxury sport sedan, which proves that hybrid powertrains can work superbly in virtually any application,” he said. “It’s very important to continue pursuing substantial reductions in fuel consumption and emissions, while continuing to improve performance and driving pleasure.”

One of the most visible trends for 2006 is the continued rise in “tuner” customization — a market that was kick-started by youth-oriented Scion. Manufacturers are offering more and more customizing options, such as personalized sport appearance packages and high-end sound systems.

“Look for the Chevy Cobalt and Ford Focus to jump on the tuner bandwagon in a big way this year,” Taylor said.

For consumers, it’s all about personalizing their rides, making even a low-priced sedan as flashy as possible with custom rims, MP3 players and more. For manufacturers, it’s all about courting coveted young drivers.

Scion has increased its visibility among the young crowd by holding deejay contests and Scion-sponsored independent film festivals. Tricked-out custom Scion displays sometimes show off their stuff outside hot clubs on Friday nights.

Notice the recent rock hits and hip-hop stars in car ads these days? Don’t expect this trend to wane anytime soon.

“You can tell the automotive industry is going after the hip-hop nation when you see Snoop Dogg doing a Chrysler commercial,” Taylor said.

Bob Young is a freelance writer based in Glendale.
Top Left Photo: Lincoln Zephyr

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