{"id":65454,"date":"2013-09-26T09:20:14","date_gmt":"2013-09-26T13:20:14","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=65454"},"modified":"2013-09-26T09:21:58","modified_gmt":"2013-09-26T13:21:58","slug":"compact-crossovers-becoming-a-full-size-market-segment","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2013\/09\/compact-crossovers-becoming-a-full-size-market-segment\/","title":{"rendered":"Compact Crossovers Becoming a Full-Size Market Segment"},"content":{"rendered":"
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The Lexus LF-NX may have been the single most controversial vehicle to debut in Frankfurt this year.<\/figcaption><\/figure>\n

It created quite a buzz \u2013 and more than a bit of controversy \u2013 when Lexus officials lifted the covers off the angular LF-NX concept vehicle during the Frankfurt Motor Show earlier this month. But while the edgy look is a subject of hot debate among industry insiders and potential buyers alike, there\u2019s one thing everyone seems to agree on: Lexus, like its competitors, critically needs to add a compact crossover to its line-up.<\/p>\n

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Your Auto News Source!<\/figcaption><\/figure>\n

And the maker isn\u2019t alone.\u00a0 In fact, an assortment of production models and compact crossover concept vehicles shared the stage during this year\u2019s Frankfurt Motor Show, and even more are expected to make their debut in the months ahead as brands as diverse as Infiniti, Lincoln, Cadillac and even Jaguar enter the fray.<\/p>\n

\u201cWe\u2019re all reading the same tea leaves,\u201d suggests Mark Templin, the new global chief executive for Lexus, Toyota Motor Co.\u2019s luxury brand.<\/p>\n

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Jaguar reveals the C-X17 concept.<\/figcaption><\/figure>\n

Global sales of C-segment \u2013 as in \u201ccompact\u201d \u2013 crossover-utility vehicles are expected to grow by about 1 million units, to 8.1 million, over the next three years, according to IHS Automotive.\u00a0 That would make such vehicles, collectively, one of the industry\u2019s largest product niches, at roughly 10% of overall automotive sales.\u00a0 In North America, meanwhile, sales are expected to jump from 2.3 million to 3.3 million during the same period.<\/p>\n

(For a closer look at the Lexus LF-NX Concept, <\/em>Click Here<\/span><\/a>.)<\/em><\/strong><\/p>\n

David Leone, an executive chief engineer at Cadillac, predicts the compact CUV segment soon \u201ccould be one of the three biggest segments in the luxury market.\u201d But it is expected to grow rapidly in more mainstream segments, as well.<\/p>\n

The reasons for the growth are numerous.\u00a0 For one thing, there\u2019s the growing focus on fuel economy, driven by both rising gas prices and by tough new mileage and emissions standards.\u00a0 Manufacturers will have a tough time meeting their targets without downsizing, industry analysts warn.<\/p>\n

(Jaguar reveals its first-ever crossover. <\/em>Click Here<\/span><\/a> for more.)<\/em><\/strong><\/p>\n

But, \u201cFor a consumer looking to maintain some utility while getting better mileage, you\u2019ll get a lot more out of a compact crossover than you would from a compact sedan,\u201d says Stephanie Brinley, an IHS Automotive strategist.<\/p>\n

She also notes that crossovers are one of the rare \u201cglobal\u201d body styles clicking with consumer in Boston, Beijing and Berlin.\u00a0 That can\u2019t be said of other, high-utility models like minivans, wagons or hatchbacks.<\/p>\n

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Infiniti's Q30 doesn't readily invite categorization, says its designer Alfonso Albaisa.<\/figcaption><\/figure>\n

While the Lexus LF-NX is expected to undergo significant design changes before reaching market, the luxury maker will have a production model ready in short order, joining the more mainstream Toyota brand. Nissan has scored a success with its mainstreadm Rogue model and will soon add a production version of the Infiniti Q30 concept vehicle unveiled in Frankfurt.\u00a0 Perhaps the big surprise at the German show was the unveiling of the Jaguar C-X17 concept \u2013 which would share the same, underlying platform as a new compact sedan the British maker is developing.<\/p>\n

\u201cWe\u2019d be fools not to explore every possibility,\u201d admits Kevin Stride, Jaguar\u2019s senior vehicle line director, acknowledging it may be time for the maker to step out of its traditional niche building sporty sedans, sports cars and coupes.<\/p>\n

(Is the Infiniti Q30 the shape of things to come? <\/em>Click Here<\/span><\/a> to find out.)<\/em><\/strong><\/p>\n

BMW recently added the compact X1 to its line-up and Audi and Mercedes-Benz will follow, the latter with the GLA model also unveiled in Frankfurt. Earlier in the year, Ford Motor Co.\u2019s Lincoln brand revealed a concept crossover dubbed the MKC, and a production model should reappear by the time of the 2014 Detroit Auto Show, in January. Cadillac, meanwhile, is planning to bring one of its own small CUVs to market by 2015.<\/p>\n

But don\u2019t be surprised to see the industry targets even smaller products in the near-future, says IHS analyst Brinley.\u00a0 The consulting firm projects that sales of pocket-sized B-segment crossover will more than double over the next three years, sales jumping from 1.12 million in 2013 to 2.48 million in 2016.<\/p>\n

But it\u2019s the compact segment that the industry \u2013 along with consumers — is especially excited about.<\/p>\n

\u201cWe\u2019re going to be seeing a lot of growth,\u201d says Cadillac\u2019s Leone, \u201cwhich makes it a very exciting segment.\u201d<\/p>\n

(This story first appeared on NBCNews.com)<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The Lexus LF-NX Concept may have a wildly controversial design but one thing is certain, manufacturers such as Nissan, Jaguar, Lincoln and Cadillac are all racing to come up with new compact crossovers which are rapidly becoming one of the hottest new market segments. More from TheDetroitBureau.com.<\/p>\n","protected":false},"author":2,"featured_media":64833,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[8],"tags":[],"make":[],"post-state":[],"category_old":[151],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/65454"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=65454"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/65454\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/64833"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=65454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=65454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=65454"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=65454"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=65454"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=65454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}