Having put off becoming homeowners, starting families, and buying cars, a new report commissioned by Ford Motor Co. indicates that millennials, part of America’s largest demographic, are following in the footsteps of previous generations.
“Gen X, which is critical to midsize and large SUV sales today, is a much smaller group than either older baby boomers or younger millennials,” says Erich Merkle, Ford U.S. sales analyst. “Fewer members of Gen X means fewer families – that is, until America’s millennials move into their prime years, a shift that’s just beginning.”
Total industry sales of midsize and large SUVs grew 9 and 11 percent respectively in the first half of 2017, versus 4 percent growth for small SUVs. Ford expects all SUV sales to grow from 40 percent to more than 45 percent of the total U.S. vehicle market within the next five to seven years, which could mean and additional 850,000 SUVs sold each year.
Ford is rolling out the new 2018 Expedition in anticipation of the surge, which is a full-size, aluminum-bodied SUV with hundreds of pounds shaved off its curb weight to enable new features such as a high-tech interior and more efficient 10-speed automatic transmission.
The new Ford Expedition will be available at dealerships this fall.