Whats Big, Guzzles Gas And Is Getting Faster Answer: The Latest Crop of SUVs, as Makers Add Horsepow

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Whats Big, Guzzles Gas And Is Getting Faster?
Answer The Latest Crop of SUVs, as Makers Add
Horsepower to Many Models

• By Michelle Higgins, Wall Street Journal.
  (Eastern Edition). New York, N.Y. March 24, 2005
  pg. D.1

• Under fire for poor gas mileage.

• 12 decline (4th Quarter2004)
• 19 decline (1st quarter2005)

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New Strategy for low Sales Bigger Engines

• Car Manufacturers are adding horsepower
• SUVs accelerate like sports cars.
• 2006 TrailBlazer SS- 8 cylinder
• Jeep Grand Cherokee SRT8
• 415 Horsepower
• 0 to 60 mph in under 5 seconds

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Power Vs. Efficiency

• 2005
• 84 prefer power
• 17 prefer efficiency
• 1995
• 55 prefer power
• 45 prefer efficiency
• (CNW Marketing Research)

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Redesign

• Safety
• Suspension adjustments
• Anti-Rollover Technology

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International Competition

• European Market
• Porsche Cayenne
• BMW X5
• Volkswagen Touareg
• Volvo XC90

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Problem Definition

• Problem Manufacturers are not meeting consumer
  needs (short term-long term)
• Symptom Sales Decline
• Reasons Safety Efficiency
• Strategy Increase power, Improve Safety

Text Integration

• Syndicated Descriptive Research (outsourcing)
• Secondary Data (NHTSA)
• Benchmarking
• Survey analysis