Minivan Market Fading Fast
The glory days of the minivan may be over. Demand has nosedived for the Dodge Caravan, Ford Windstar, Chevrolet Venture and others in the once-popular segment, according to an April 8 story by Susan Carney in the Detroit News. Overall minivan sales have plummeted 27 percent in the year's first three months compared with the same period a year ago, while total U.S. car and truck sales have slipped just 5.8 percent. That's the most severe decline for any segment in what had been a sizzling light-truck market. One reason may be the arrival of new sport-utility vehicles with minivan attributes, according to industry analysts. The so-called "crossovers" -- Lexus RX300, Acura MDX, Toyota Highlander, Hyundai Sante Fe, and other hip new vehicles which offer extra seating, more storage and four-wheel-drive capability -- may be eroding traditional minivan sales. While minivan sales falling, SUV demand has advanced an impressive 11.5 percent this year. Another concern may be the economy. Budget-conscious families -- the core of minivan buyers -- may be holding off until the severity of the economic slowdown becomes clearer. But there's no question the minivan segment is limping as the crucial spring selling season kicks into gear, according to Carney. If consumer interest is flagging, DaimlerChrysler AG's Chrysler Group is particularly vulnerable. The automaker invented the minivan in the mid-1980s and still holds 40 percent of the market. The upscale Chrysler Town & Country is the only minivan enjoying a sales spike this year, up 28.3 percent. But the Chrysler Group's total minivan sales, which include high-volume Dodge Caravan and the lower-priced Chrysler Voyager, are down 30 percent. Chrysler won't talk about it, but analysts say the automaker has its own crossover vehicle in the works -- called the Citadel and due in 2003. If the minivan market has peaked, it may be because the minivan has become the stereotypical family vehicle, the wood-paneled station wagon of the 21st century.
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