Economic Impact of SUVs
The SUV (Sports Utility Vehicle) is one of the most popular types of vehicle to both own and drive. Last year, SUVs and minivans outsold conventional cars for the first time. During the 1990s, sport utility vehicles (SUVs) became the fastest growing segment of the auto industry. Generally larger and heavier than the typical automobile, SUVs require more fuel and produce greater amounts of toxins. Although buyers believe that SUVs are safer than automobiles, which they are in some cases, SUVs are more prone to roll-overs than are automobiles. With sales projected to grow to over 3 million units per year in 2001, SUVs show no sign of decreasing in popularity. However, the SUV is increasingly coming under attack for its fuel economy. The retail gas prices rose to just over $4 a gallon. Sales of large SUVs were affected more than any other vehicle, and their resale values dropped like a rock. In this paper I would like to talk about: why people want to buy SUVs? What impact does the lower fuel economy of SUVs have on the economy? What is the new fuel economy policy by the government? What impact does the safety record if SUVs have on the economy?
Sport utility vehicle (SUV) is a vehicle similar to a station wagon or estate car. Early SUVs were used in military and commercial purposes, Jeep and Land Rover were used in the WW2. Chevrolet Carryall Suburban was the first SUV came out in 1935, but it’s only a RWD. SUVs became popular in the United States, Canada, India and Australia in the 1990s and early-2000s. In every household in United States owned many types of SUV. There are four different types of SUVs in the market right now those are: Compact SUV, Mid-size SUV, Full-size SUV, and Luxury SUV. Some says that, the high gasoline consumption of the SUV is a symbol of decadent waste. To others, the large size of the vehicle is a symbol of status and safety. SUVs have lots of advantages like we transports many things without renting the rental truck. In the many time many people can travel along. All over the best vehicle to take for camping off-road was driving. The one & only disadvantage is the fuel efficient. Gas price is increasing and mileage we get is all SUVs are not sufficient.
We Americans are in love with our cars. We appreciate good styling, and SUVs are currently in vogue. The United States economy is strong, and individuals have more money to spend on luxuries. Furthermore, because the SUV market is so good, almost every manufacturer offers at least one SUV option. Most recently the luxury SUV hit the market, the prices above $45,000, large SUVs cost below $55,000 and mid-size SUVs cost below $40,000. People have put more attentions to SUVs because of the safety. A market surveys taken by New York Times shows that “visibility from the driver’s seat ties a vehicle’s driving performance and interior comfort as the most important attributes that buyers seek.” Finally, SUV owners profess to feeling more protected and more in control of their safety in traffic when travel in a SUV. More than 15% of SUVs are driven off-road; people need vehicles that can carry lots of stuff. Many SUVs are capable of towing over 2500 pounds and most of them seat five passengers; some even offer third row seating. Especially the weather condition is US, people are looking to safe driving. They want a vehicle that will get around better in the snow. These are some of the reason why people buy SUVs.
What impact does the lower fuel economy of SUVs have on the economy? Fuel efficient means how much millage get per gallon in vehicles. Can we know the gas price is rising up many people are backing up to not buy a SUV these days. An article in US News called SUV Sales Continue to Soar Despite High Gas Prices, Jesse Toprak, vice president of market intelligence at TrueCar.com said that "The improving gas mileage, over especially the past couple of years, has really taken away one of the main reasons would not consider buying an SUV."Americans are buying more SUVs now than ever before, but they aren’t the same SUVs of past decades. According to the consumer report the number one fuel efficient SUV is Toyota Highlander Hybrid Limited, the city MPG is 23 and highway MPG is 29. Today's SUVs aren't like the gas guzzling tanks from a decade ago, experts say. A few years ago, you might need a small ladder to get into the driver's seat of typical truck-based SUVs, like the Ford Excursion or Hummer H2. Now, many of those lane-hogging tanks aren't even sold anymore. An article from Times magazine published on May 2012 stated that “If gas hit $5 per gallon, prices of large used SUVs and trucks were expected to drop by as much as 20%.”
But nothing happened the Mazda CX-5 were sold out due to incredible demand, starts at a little over $20K and gets over 30 mpg on the highway. Auto maker were strong all in 2012 and boosted their production of their certain vehicles. The vast majorities of SUVs sold today are actually smaller and have fuel economy that's as good as or better than many passenger cars on the road. The Chevrolet Equinox gets better combined city and highway mileage than some the Honda Accord models. The Equinox get 22mpg in city and 32mpg in highway. The other SUVs have more fuel efficient are like the Ford Escape and Honda CR-V. The number one SUV in year end 2012 was Honda CR-V, has sold 25,186 cars. People moved from the large SUVs to the mid-size SUVs a Ford buyer may decide to buy a Ford Escape instead of the larger Explorer or Expedition. A Toyota buyer may choose the more fuels efficient RAV4 rather than the Highlander or Sequoia. As you see the graph of the gas price in last 24 months (above left) helps us to shows how did the people are struggling with the fuel economy in the country for last two years. It was far better than 2007& 2008.
But now companies started to build Hybrid SUVs, which means is a vehicle that uses two or more distinct power sources to move the vehicle. Comparatively the price of the SUVs is higher but the mileage is higher than ordinary SUVs. In 2007 Ford motors were successful in created a masterpiece and a revolution in technology, when they created and rolled out the first commercial hybrid car, the Ford Escape Hybrid. The Lexus and the Toyota are another of the producers of some of the most economic hybrid cars that are now up for sale. The two wheel drive versions of the Toyota Highlander Hybrid and the Lexus RX 400 boast of a 3.3 liter 6cylinder engines, combined with the CVT automatic transmissions that help the cars deliver an astonishing 28 MPG in the city and 25 MPG on the highway. The Lexus and Toyota has successfully developed proper technology so that the 4 WD of the Toyota Highlander and the Lexus RX400h come in just a fraction less 27 MPG in City and 24 MPG on Highway. Congress has sent a powerful message to automakers; the new fuel economy standards will give the industry nearly another decade to improve fuel economy. It will help to improve fuel economy to promise to reduce the gas price. By reducing the gas, we can reduce the CO2 level. In that way we can improve the environment and our economic system. Under the Corporate Average Fuel Economy (CAFE) rules, vehicle manufacturers are required to meet a specific mpg standard, they set at 27.5 mpg for cars and 22.2 mpg for light trucks. Automakers who manufacturing fuel economy standard will earn credit and automakers who can’t meet the standards must pay a fine per vehicle they manufacture. Most of the automakers are gradually increasing 0.5 mpg per year. Most Asian manufacturers routinely beat the standard, while many European manufacturers routinely miss the standard and pay the penalty. U.S. manufacturers typically struggle to just meet the standard. The CAFE made a move that would increase the average to 35 mpg by 2020. The President has already expressed his support; the debate has once again landed the question of crash safety versus fuel economy front and center. When it’s come to safety SUVs have become significantly safer over the years, but they can still pose a greater danger to other users on the road than smaller or lighter vehicles. An article from MSN.com/auto, called Will New Fuel Economy Standards Make Cars less Safe? Friedman is an engineer and director of the Union of Concerned Scientists, points to a National Academy of Sciences study done in 2002. “It projected that within 10 to 15 years, the industry could be making a 34 mpg midsize SUV, a 37 mpg minivan, a 29 to 30 mpg pickup and a family car that gets over 40 mpg.” He also said that “He and others who support higher mileage standards declare how SUVs, once notorious for rollovers, roof collapse, and sluggish braking, have become much safer, not from beefing up on mass, but from better technology and engineering.” Laura Schewel, an environmental engineer with the Rocky Mountain Institute, says “if the new CAFE standards end up making the entire vehicle fleet lighter, this will ultimately save lives.” There are a wide variety of technologies and approaches available to advance vehicle fuel economy that have no effect on vehicle safety. Many manufactures uses strategic weight reduction, which means that it is a new lightweight materials to reduce weight while holding vehicle size even and reduce the weight of the SUVs to make them less aggressive. It could be achieved while maintaining or improving safety. Although some workshop participants disagreed with this conclusion, all participants did agree that there is ample opportunity to improve fuel economy without reducing vehicle crashworthiness
Rank Best-Selling SUV 2012 2011 % Change
#1 Honda CR-V 281,652 218,373 + 29.0%
#2 Ford Escape 261,008 254,293 + 2.6%
#3 Chevrolet Equinox 218,621 193,274 + 13.1%
#4 Toyota RAV4 171,877 132,237 + 30.0%
#5 Ford Explorer 164,207 135,704 + 21.0%
#6 Jeep Grand Cherokee 154,734 127,744 + 21.1%
#7 Nissan Rogue 142,349 124,543 + 14.3%
#8 Jeep Wrangler 141,669 122,460 + 15.7%
#9 Ford Edge 127,969 121,702 + 5.1%
#10 Toyota Highlander 121,055 101,252 + 19.6% and occupant safety. However, some automakers like VW and Honda, for example started their designing of lighter vehicles to be as safe as heavier vehicles and with higher fuel economy. Manufacturers with strong safety records, especially in Europe, are producing a fleet of lighter, smaller, high-fuel-economy cars.
What you think about the “SUV craze" was over? If your answer is yes, you are wrong. Market study shows that SUVs in recent months was the largest sales it has ever been. Even in when the gas price is about $4/gallon. The study also says that in every three vehicles sold in US, one is SUVs. SUVs have survived and prospered by adapting to the consumer tastes in past years. SUV craze will not be over it will going for ever and will have fuel efficient SUVs in future years. As I said earlier in this paper, there are many changes to the SUVs from the past few years. The total frame of the SUVs is different from past. When SUVs were first in the market, it was looked like a truck with ladders to get into the driver seat. Has only two doors and with a removable top. By 2002 the two door SUVs gone from the market. Most SUVs are designed for carrying cargos and passengers. SUVs are known for high ground clearance, upright, boxy body. According to consumer reports.org, Toyota Highlander Hybrid Limited V6 CVT is the best fuel economy mid-size SUV. The mpg is 28 in city and in highway.
There are many way to get better fuel economy. The Consumer Guide made some ways to improve the fuel economy. First change the driving style. Slowdown if you're on the highway, driving 60 mph instead of 70 mph will save you 2-4 mpg over the trip. Don’t accelerate quickly and don’t stop quickly on the brakes. You'll save on fuel as well as wear and tear on your brakes, which will save you even more money. Shut down your engine if you’re waiting in a railway crossing, pickup someone. Don't warm up your vehicle for more than 30 seconds. Windows up. We always put our windows down in a pleasant day. But having the windows down creates aerodynamic drag that causes an engine to work harder. On the highway, this can decrease fuel economy by up to 10 percent. Second maintain your vehicle. Check your tire pressure, vehicle's tires are set to the recommended pressure can increase fuel economy by as much as 3.3%. The less weight in your vehicle is the better your fuel economy. These are some ways to improve the fuel economy in our vehicle. All the ways that are described are very useful and true to increase the fuel economy.
In conclusion, we know that the fuel economy is not good in SUVs. But automakers are making more Hybrid SUVs to the market, and also making fuel economy SUVs too. Even though the fuel economy is down, there are no draw backs in the sales in SUVs. As the drawbacks of owning and driving an SUV, an increasing number of consumers of all ages are making the switch from minivans and sedans to the convenience and versatility of SUVs. Older people like the ease of getting in and out of a vehicle with higher seating, while younger consumers are in love with with the sleek looks and features of this new generation of SUVs. The new styling and design has been able to bring in additional segments who traditionally did not like the boxy SUV look. If you're thinking people who never even thought about buying an SUV a year ago, now because of the plentiful number of choices out there and styling improvements gets their attention. So, we can wait for a better fuel economy and new styles of SUVs to drive around and enjoy the on-road and off-road.