RoyJ wrote:
I totally get what you're saying, and I personally would love a 3/4 ton, or even 1-ton class SUV. But I, and most on this board, are in the minority.
Let's say they built a killer 'Burb, on a modern 2500 chassis, 445hp non-neutered Duramax + 10 speed. Then let's say it sold well, 50,000 units a year. But...
25,000 out of those came from existing Silverado HD buyers, another 20,000 from Suburban 1500 buyers. Remember, these buyers brings NO PROFIT. So if GM is lucky, 5,000 new buyers would come from crossover buyers. But even that's unlikely, as they'll upgrade to a 1500 'Burb / Expedition first. Let's just say it happens, bunch of Explorer or Highlander buys suddenly wants a big truck.
How do we make enough profit from 5,000 units to offset the R&D cost?
VERY good point. And likely the biggest detractor for mfgs. And I said it myself. HD suv buyers will largely come from the other big/luxury vehicle markets with assumed similar profit levels.
On that note, maybe it doesn't make sense. It's not like if a person can't buy a HD SUV, they're going to get a Prius instead. They will buy a truck or 1/2 ton SUV.