Seeking Alpha

Automakers looking for compact SUV market share

  • The Frankfurt Auto Show will feature several new SUV models from automakers eager to gain an edge in the profit-making segment.
  • Many of the new introductions are smaller in size with demand for compact SUVs strong in Europe and China.
  • SUV compact challengers: Nissan (NSANY.OB), General Motors (GM), and Ford (F) among others.
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Comments (5)
  • JCLOCK
    , contributor
    Comments (4) | Send Message
     
    So do we here in USA.
    9 Sep 2013, 10:21 PM Reply Like
  • Raymondalpha
    , contributor
    Comments (76) | Send Message
     
    GM, where is the EREV CUV? You had a FC Equinox in 2008 but failed to follow it with a BEV or a EREV. You also have many good small SUVs and CUVs, but they are old-fashioned gas burners. Where are the BEV models?
    10 Sep 2013, 09:03 AM Reply Like
  • Tdot
    , contributor
    Comments (5700) | Send Message
     
    Raymond - Exactly what is the Chevy Volt? And the Holden Volt in Australia, and the Vauxhall / Opel Ampera in Europe? EREV right?
    10 Sep 2013, 11:20 AM Reply Like
  • Raymondalpha
    , contributor
    Comments (76) | Send Message
     
    Yes, but those are not enough. GM must produce CUV and SUV versions. They had their opportunity with the Fuel Cell Equinox, but didn't follow up.
    11 Sep 2013, 08:37 AM Reply Like
  • Tdot
    , contributor
    Comments (5700) | Send Message
     
    Everyone had fuel cell powered electric vehicles rolling around back then. Even Ford had some FC Escape (previous generation) SUVs running around, not to mention plug-in Escape Hybrids 5-10 years ago. These were all development mules and "one-off" (or perhaps a dozen-off) technology demonstrators, partly made under government funded contracts specifically for testing of the principles, and producibility and profitability. Not to mention for politics.

     

    The problem was specifically cost. Those fuel cell EVs costed out at well over $150k each, even in mass production mode, and there was just no hope of selling enough units at that sort of cost and making a profit, even if the development and tooling costs were written off and ignored. Car companies are not in business to lose money at the mass production level.

     

    Over the last 10 years or so there has been some movement in the costs for Fuel Cell vehicles, and Toyota plans to launch something in the next couple of years. Of course they have something like $100B in free cash (mostly from Americans) to spend on virtually anything they want to. And they will still rake in another $10B+ in profits each year just in the US, even if they give away 100,000 of those $100k FC vehicles each year.
    11 Sep 2013, 08:45 PM Reply Like
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