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Ford: SUVs to Account for 40% of All New Vehicle Sales by 2020

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2017 Ford Escape Titanium (4)

2017 Ford Escape Titanium

Ford is putting a great deal of emphasis behind its SUVs and crossovers, a point punctuated by this morning’s reveal of a new and improved 2017 Escape. There’s good reason for this—SUVs have been a major hot-ticket item among vehicle shoppers in the United States in 2015, and Ford expects that popularity to increase exponentially over the next five years.

According to Bloomberg, Ford anticipates that SUVs and crossovers will account for 40% of all new vehicle sales in the United States by 2020. According to Ford Escape brand manager Kevin Schad, much of this growth can be attributed to the evolution of the Millennial, the difficult-to-grasp demographic that is gradually shifting into adulthood and parenthood.

2015 Ford Edge EcoBoost

2016 Ford Edge EcoBoost

More than 5 million SUVs will be sold in the United States this year, and Ford is taking a considerable piece of that pie with a 16% year-over-year sales increase for crossovers and SUVs. Thanks to a steady trickle of new vehicles in these segments—including the new Edge and Explorer—Ford lays claim to selling roughly a third of all vehicles sold in the United States, a great many of which are utility vehicles.

This trend toward bigger vehicles has naturally caused a precipitous drop in car sales for all automakers, but Ford isn’t worried. The increase in SUV and crossover sales has done enough to offset losses sustained by one-time lineup stalwarts like the Focus and Fusion, and it has caused Ford to consider models like the Escape the new heart of its lineup.

“The compact SUV is the epicenter of growth,” Schad told Bloomberg. “That segment has really taken off since the economic downturn and industry recovery in 2008 and 2009 and doubled sales.”

Ford is not likely to let up any time soon, as plans call for a new aluminum-bodied Expedition to hit the market for the 2018 model year, and a new UAW contract may inevitably pave the way for the return of the ultra-popular Ford Bronco.

News Source: Bloomberg