Minivan still a contender in SUV world

DETROIT -- Twenty years after Baby Boomers fell in love with the minivan and made it part of America's suburban landscape, the breadbox on wheels has been largely pushed aside by a surge in the popularity of SUVs.

But with the yearly U.S. market for minivans still one million strong, automakers plan to roll out several new minivan offerings in the next year or two. Ford Motor Co. this week will unveil its two new models -- the Mercury Monterey and Ford Freestar -- at the Chicago Auto Show.

When Chrysler introduced its first family hauler in 1983, many Boomers were in the prime years of carting their progeny from school to activities. The roomy vans soon became favorites among soccer moms.

These days, people in their 20s and 30s are more often opting for sport utility and so-called crossover vehicles, which tend to be more rugged and stylish.

SUVs, despite increasing criticism of their fuel-efficiency and safety records, and crossovers comprised some 25 percent of U.S. light vehicle sales last year. Minivan shares, meanwhile, fell to 6.7 percent, its worst performance since 1989.

That's a sizeable chunk of sales that none of the automakers want to cede in an increasingly competitive domestic market. That's why General Motors Corp., Toyota Motor Corp. and Nissan Motor Co. also plan new versions of the minivan in the next year or two.

"There are some good offerings out there, but I think consumers have gotten bored with them," said Mike Wall, an analyst with the auto forecasting firm IRN Inc. "What you're seeing is a move to freshen up the vehicles. No one's going to gain a ton of market share."

Chris Theodore, Ford's vice president of North American product development, said creating an attractive product was important, but Ford's emphasis on the new upscale Monterey and the more mainstream Freestar was the interior -- more storage space and a quieter ride.

Nearly every other major automaker has jumped into the market since the first Dodge Caravan rolled off Chrysler's Windsor, Ontario, assembly line on Nov. 2, 1983. Chrysler remains the dominant player at some 36 percent of the U.S. market. The company expects to produce its 10 millionth minivan later this year.

Foreign transplants, however, are gaining ground among minivan buyers. Honda Motor Co. sold about 153,500 of its Odyssey minivans last year -- 4,600 more than the Ford Windstar. Honda entered the market in 1998.

"The transplants are traditionally late to the game ... but somehow they're able to really hone in. The Odyssey is a good example," Wall said.

At Detroit's North American International Auto Show last month, Toyota and Nissan both showed off new versions of their minivans that Wall said are likely to hurt domestic rivals.

Toyota's 2004 Sienna, which goes on sale next month, has more interior space, power and fuel economy than earlier models. The Japanese automaker says it hopes to sell 120,000 in the first year of production -- 40,000 more than '02.

Nissan plans to start selling its new Quest in July. It features the first Bose audio system designed for a minivan, a DVD entertainment system and two vertical skylights.

Earlier this month, GM said it will revamp its Chevrolet and Pontiac minivans and, for the first time, offer Saturn and Buick models starting in 2005.

Ford, which has seen its minivan market share shrink from 17 percent in 2001 to just under 15 percent last year, will debut its new Monterey and Freestar, which replaces the Windstar, at the Chicago Auto Show. The new vehicles will be in dealerships later this year.

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