Cross-Over Utility Vehicles

The crossover utility vehicle (crossovers) market emerged in response to, and most likely caused, declines in larger sport utility vehicle sales. The term “crossover” is a one-word moniker for a sport-utility that uses a car chassis. As of February 2006, there were 41 crossovers on the road. The crossover market is growing as automakers and the media alike insist on using the word "crossover" to describe a group of vehicles that come in all shapes and sizes; and one that will multiply into even more shapes and sizes in the future. In 2007, 57 new vehicle models are entering the market; 19 of them are crossovers. Sections I and II of this paper examine demand and supply and market structure for crossover vehicles. Section III provides a summary of macroeconomic variables in 2006 and looks at their effect on General Motors. Lastly, section IV examines the Federal Reserve’s actions to affect GDP, inflation, and unemployment and outlook for 2007.

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