Industry Study Finds Affluent Gen-Xers Flocking to 365-Horsepower Ford Explorer Sport

[jpd80]

Aug 11, 2016 | DEARBORN, Mich.

Industry Study Finds Affluent Gen-Xers Flocking

to 365-Horsepower Ford Explorer Sport

Link to media.ford.com

• Ford Explorer Sport has higher percentage of Gen X buyers than all other non-luxury brand midsize SUVs in the United States, according to new vehicle customer study by MaritzCX
• Exclusive Explorer Sport emerges as a favorite for professional Gen-Xers (born 1965-78)
• Average Ford Explorer Sport buyer has household income of $175,000, versus $112,000 for average midsize SUV buyer, study reveals

DEARBORN, Mich., Aug. 11, 2016 – Professional Gen-Xers don’t always drive SUVs, but when they do

they drive Ford Explorer Sport, according to a new vehicle customer study by MaritzCX.

 

Data from the study shows the vehicle has the highest percentage of Gen X buyers of any non-luxury SUV

in the United States, reflecting this group’s preference for exclusivity and performance at a great value.

With its 3.5-liter twin-turbo EcoBoost^® V6 engine mated to a six-speed SelectShift^® automatic transmission,

Explorer Sport delivers 365 horsepower at 5,500 rpm and 350 lb.-ft. of torque at 3,500 rpm.

 

Explorer Sport has grabbed a significant 15 percent of total nameplate sales since its debut in 2014.

Jim Mulcrone, director of research services for MaritzCX, says 23 percent of buyers of other midsize SUVs,

on average, are Gen-Xers, but Explorer Sport attracts nearly 40 percent of those born between 1965 and 1978.

 

“Ford has a very interesting customer with this product, and what’s unusual is that many are buying it without trading

anything in,” he says. “Our study shows that while 17 percent of all non-luxury SUV buyers classify themselves as

‘specialty professionals,’ that number is closer to one in four with Explorer Sport. It seems this product is breaking

through.”

 

Peak earning years for members of Generation X are between 47 and 54 years old, and these consumers have a

more practical, experiential and family-oriented mindset than baby boomers did at this stage of life, says Sheryl Connelly,

Ford manager of global trends and futuring. “Boomers felt the need to display their status in more obvious ways than

Gen-Xers do,” she says. “While both groups are hugely important, automakers need to pay special attention to Gen-Xers.

Our Explorer Sport fits the profile of the successful member of Generation X.”

 

Average household income for a buyer of Explorer Sport is $175,000, versus $112,000 for the average midsize SUV

buyer, the study reveals. Mulcrone says Explorer Sport buyers broaden Ford’s base by attracting more affluent consumers,

including those who have owned premium brands. Moreover, those Explorer Sport customers who do trade in a vehicle

are twice as likely as average midsize SUV buyers – 12 percent versus 6 percent – to trade in a premium one.

 

“When consumers look at Explorer Sport, they see all the style and performance of a luxury SUV, but at roughly $20,000

less,” says Omar Odeh, Ford Explorer marketing manager. “Our surveys show Explorer Sport owners highly rate such

attributes as ‘power and pick-up,’ ‘fun to drive’ and ‘overall performance.’ The best part is they represent incremental

buyers for us, in that some don’t even set out looking at the Ford brand. Explorer Sport is proving it can stand on its own.”

 

The 2017 Ford Explorer starts at $31,160, plus destination and delivery, taxes, title and licensing fees; Explorer Sport

starts at $45,205. For more information on Explorer, please visit ford.com.

Edited August 14, 2016 by jpd80

[BORG]

Explorer has historically grabbed more affluent customers which is why you had so many "Limited" and "Eddie Bauer" editions even before Sport and Platinum.

[ehaase]

Explorer has historically grabbed more affluent customers which is why you had so many "Limited" and "Eddie Bauer" editions even before Sport and Platinum.

 

Which may be why the next generation Explorer will use CD6 platform which will be shared primarily with Lincoln.

[jpd80]

Explorer has historically grabbed more affluent customers which is why you had so many "Limited" and "Eddie Bauer" editions even before Sport and Platinum.

Which makes me wonder about the idea of an Aviator above MKX but just below Navigator and whether that's too many utilities too close together or is it exactly what the market wants/ needs? Edited August 14, 2016 by jpd80

[hwyman3]

I love my Explorer Sport!

[2b2]

Which makes me wonder about the idea of an Aviator above MKX but just below Navigator and whether that's too many utilities too close together or is it exactly what the market wants/ needs?

just-imho for Aviator,

absolutely-EXACTLY

definitely-PRECISELY

thinking it could become Lincoln's best-selling vehicle

[BORG]

There is a significant SUV gap at Lincoln without an Aviator, has been for 10 years....although they did try with the MKT which was a failure I think we all saw coming a mile away (except Ford). The next Navigator is still a uniquely large truck-ish SUV and not at all similar to the German/British SUVs which is something I would have personally preferred (not interested in a luxury bus), so I'm hoping the Aviator splits the difference. I for one think the Lincoln Navigator concept is a nicely crafted concept but ugly, derivative, and ungainly....lost any interest in that one.

Edited August 15, 2016 by BORG

[twintornados]

There is a significant SUV gap at Lincoln without an Aviator, has been for 10 years....although they did try with the MKT which was a failure I think we all saw coming a mile away (except Ford). The next Navigator is still a uniquely large truck-ish SUV and not at all similar to the German/British SUVs which is something I would have personally preferred (not interested in a luxury bus), so I'm hoping the Aviator splits the difference. I for one think the Lincoln Navigator concept is a nicely crafted concept but ugly, derivative, and ungainly....lost any interest in that one.

.

MKT was not exactly a failure per se...It was aimed at an entirely different market which is shrinking with every passing year. The people that I know that own one...love it.

[silvrsvt]

The Sport saw a significant price bump in the last refresh...when I was looking at A plan pricing, it was about 1K more (sticker wise) then an SHO. Today it's nearly 4K more!

[03 LS]

Which makes me wonder about the idea of an Aviator above MKX but just below Navigator and whether that's too many utilities too close together or is it exactly what the market wants/ needs?

Look at these two quotes,

the vehicle (Explorer Sport) has the highest percentage of Gen X buyers of any non-luxury SUV in the United States, reflecting this groups preference for exclusivity and performance at a great value.

and,

When consumers look at Explorer Sport, they see all the style and performance of a luxury SUV, but at roughly $20,000 less,

I think Ford realizes that there are still more affluent buyers who don't want to give up the "prestige" of a Luxury brand than who do, and wants to take the Aviator to them, to the heart of the luxury SUV market, "Here's exactly what you want, and it's not a Ford!" (well, at least the Lincoln sales people will say that)

The problem is, and has been, is Lincoln actually considered a Luxury Brand by those buyers. In other words, is Lincoln relevant to the import luxury brand customers?

I know Ford has been trying really really hard to get Lincoln there, and I sure hope Ford's effort will be successful this time...

 

Been a loyal Lincoln buyer for more than 10 years now.

[rmc523]

.

MKT was not exactly a failure per se...It was aimed at an entirely different market which is shrinking with every passing year. The people that I know that own one...love it.

I surely think they thought it (and Flex) would do better than they do. The interior of either vehicle was not the problem. Flex was easily the nicest interior in the lineup at debut, as was MKT. exterior styling was the holdup for most people with both of them.

[bzcat]

The Sport saw a significant price bump in the last refresh...when I was looking at A plan pricing, it was about 1K more (sticker wise) then an SHO. Today it's nearly 4K more!

 

Still cheaper than the original Explorer Eddie Bauer after adjusting for inflation.

[bzcat]

Which makes me wonder about the idea of an Aviator above MKX but just below Navigator and whether that's too many utilities too close together or is it exactly what the market wants/ needs?

 

There is a vast price gap above MKX which Lincoln doesn't have anything in the market. It will be crazy to leave it unaddressed. The size and form factor of Navigator means it is not in the same buyer consideration list as Audi Q7, Volvo XC90, Lexus GX, Ranger Rover Sport etc. MKX Black Label tops out around $60k and with only 5 seats. Lincoln doesn't have anything starting at $60k range that participates in the 7 seat CUV market.

[silvrsvt]

 

Still cheaper than the original Explorer Eddie Bauer after adjusting for inflation.

 

Might want to check your numbers...

 

Think my parents 2003 Explorer Eddie Bauer was about 30K with A plan pricing and had pretty much everything but the V8 in it.

 

Thats about $39,299.67 in 2016

 

A 2016 Explorer Sport with A plan pricing is around 41K without adding any options...and about 43-46K with plan pricing going by local dealerships.

[silvrsvt]

 

There is a vast price gap above MKX which Lincoln doesn't have anything in the market. It will be crazy to leave it unaddressed. The size and form factor of Navigator means it is not in the same buyer consideration list as Audi Q7, Volvo XC90, Lexus GX, Ranger Rover Sport etc. MKX Black Label tops out around $60k and with only 5 seats. Lincoln doesn't have anything starting at $60k range that participates in the 7 seat CUV market.

 

Exactly....

[BORG]

I think the problem with MKT and Flex is that they were packaged/looked like station wagons instead of trendy SUVs, Flex and MKT simply missed the market entirely. It really stems from Ford's long-running 3-row Crossover failure that started with the Freestyle 10 years ago and inexplicably remains today after several ambitious iterations failed to grow sales in a growing market. They aren't failure as products, I think they are all critically well received and loved by their owners (although I've heard plenty of quality complaints), but they never brought in the customers and thusly failed as investments. I still see this as tied to Ford's persistently bad idea with the Freestyle/Taurus X/Flex when everybody else was going in the direction that Explorer would take 5 years later. Lincoln was essentially stuck with an extremely niche crossover idea to work with while they had giant obvious holes in their product mix that still remain unfilled. If only Explorer wasn't such a last ditched effort to save Ford's vanishing people hauler business, Lincoln could have spent it's resources more wisely on that product. I can guarantee you they'd sell more than 295 a month.

Edited August 15, 2016 by BORG

[silvrsvt]

I think the problem with MKT and Flex is that they were packaged/looked like station wagons instead of trendy SUVs, Flex and MKT simply missed the market entirely. It really stems from Ford's long-running 3-row Crossover failure that started with the Freestyle 10 years ago and inexplicably remains today after several ambitious iterations failed to grow sales in a growing market. They aren't failure as products, I think they are all critically well received and loved by their owners (although I've heard plenty of quality complaints), but they never brought in the customers and thusly failed as investments. I still see this as tied to Ford's persistently bad idea with the Freestyle/Taurus X/Flex when everybody else was going in the direction that Explorer would take 5 years later. Lincoln was essentially stuck with an extremely niche crossover idea to work with while they had giant obvious holes in their product mix that still remain unfilled. If only Explorer wasn't such a last ditched effort to save Ford's vanishing people hauler business, Lincoln could have spent it's resources more wisely on that product. I can guarantee you they'd sell more than 295 a month.

 

In all seriousness....how was the Explorer a last ditch effort and how was Ford late to the game?

 

The Traverse didn't come out till 2009 (same year as the Flex) and the Explorer launched in late 2010 as a 2011 model.

[jpd80]

I think the problem with MKT and Flex is that they were packaged/looked like station wagons instead of trendy SUVs, Flex and MKT simply missed the market entirely. It really stems from Ford's long-running 3-row Crossover failure that started with the Freestyle 10 years ago and inexplicably remains today after several ambitious iterations failed to grow sales in a growing market. They aren't failure as products, I think they are all critically well received and loved by their owners (although I've heard plenty of quality complaints), but they never brought in the customers and thusly failed as investments. I still see this as tied to Ford's persistently bad idea with the Freestyle/Taurus X/Flex when everybody else was going in the direction that Explorer would take 5 years later. Lincoln was essentially stuck with an extremely niche crossover idea to work with while they had giant obvious holes in their product mix that still remain unfilled. If only Explorer wasn't such a last ditched effort to save Ford's vanishing people hauler business, Lincoln could have spent it's resources more wisely on that product. I can guarantee you they'd sell more than 295 a month.

The problem with Freestyle was that it wasn't allowed to directly compete with the BOF RWD Explorer of the time.

It wasn't until much later whem Mulally was looking to consolidate platforms and eliminate duplication

that the true genius of elevating D3 came to the forem replacing BOF Panther and Explorer, it enabled

Ford to close those existing plants down and transition buyers onto continuing new products.

 

Lincoln is a sad case of Peter Horbury designs not hitting their marks, MKS and MKT fall into the same basket

of ill proportioned vehicles that did not meet up to expectations. we know now that a D3 Explorer based Aviator

would have been a much better fit but what Ford has done is also a stroke of genius - Platinum Explorer is the

quasi Aviator hiding in plain sight. Continental's longer wheelbase over MKS immediately smooths the lines

and calms down the previous bulbous look of D3 Taurus based products.- its the little things that add up.

Edited August 16, 2016 by jpd80

[Anthony]

I live in a relatively upper-middle class neighborhood and I have been seeing quite a few Sports lately. They seem to almost be the new Acadia Denali (the other large CUV that seems to dominate driveways around here).

[akirby]

I think a new similarly styled Expedition with all the bells and whistles will be almost as successful.

[BORG]

 

In all seriousness....how was the Explorer a last ditch effort and how was Ford late to the game?

 

The Traverse didn't come out till 2009 (same year as the Flex) and the Explorer launched in late 2010 as a 2011 model.

 

 

The Traverse was actually out in 2008, but the other Lambdas were out in May 2006. There is absolutely no question that Explorer as we know it today exists because of the success of those GM products which is why there is a 4 year gap between Lambda and Explorer and why Ford completely lost the market in the interim. Remember, GM's answer to the fading BOF SUV was Lambda, Ford's was Freestyle. Ford was earlier, but completely wrong and they were far too slow to admit defeat on the BOF Explorer which was the cornerstone of their profit machine for years...and when they finally realized the obvious solution we got the new Explorer and all is forgotten.

Edited August 16, 2016 by BORG

[ANTAUS]

That's been an issue, (not a bad one necessarily), is that Ford can lux up a vehicle that would otherwise be a Lincoln product, and they have demonstrated this with Vignale in Europe. Leaves little for the Lincoln to improve other than "different styling, exclusive engines and better customer service" and then you have to ask, is that worth the extra 10-20K cost.

[silvrsvt]

That's been an issue, (not a bad one necessarily), is that Ford can lux up a vehicle that would otherwise be a Lincoln product, and they have demonstrated this with Vignale in Europe. Leaves little for the Lincoln to improve other than "different styling, exclusive engines and better customer service" and then you have to ask, is that worth the extra 10-20K cost.

 

Isn't that the point of any luxury car? You can get pretty much get the same options in a high end mainline brand.

 

 

 

The Traverse was actually out in 2008, but the other Lambdas were out in May 2006. There is absolutely no question that Explorer as we know it today exists because of the success of those GM products which is why there is a 4 year gap between Lambda and Explorer and why Ford completely lost the market in the interim. Remember, GM's answer to the fading BOF SUV was Lambda, Ford's was Freestyle. Ford was earlier, but completely wrong and they were far too slow to admit defeat on the BOF Explorer which was the cornerstone of their profit machine for years...and when they finally realized the obvious solution we got the new Explorer and all is forgotten.

 

But yet GM still went BK...sometimes being first isn't the best idea...and lack of $$$ in the mid 2000 hurt Ford with development costs that we are dealing with to a point today.

[bzcat]

 

Might want to check your numbers...

 

Think my parents 2003 Explorer Eddie Bauer was about 30K with A plan pricing and had pretty much everything but the V8 in it.

 

Thats about $39,299.67 in 2016

 

A 2016 Explorer Sport with A plan pricing is around 41K without adding any options...and about 43-46K with plan pricing going by local dealerships.

 

I said the original. As in 1991 Eddie Bauer.

 

I did this last time this subject came up. The Explorer Platinum cost a few hundred dollars more, adjusted for inflation, than the original MSRP of Eddie Bauer with all the options. Basically, prices for the top end hasn't changed much but obviously the content level is much higher. The real difference is in the middle trim level. Explorer Limited which is actually more similar to Eddie Bauer from previous generations is significantly cheaper now than in 1991 (and probably 2003 as well).

Edited August 16, 2016 by bzcat

[akirby]

People are still hung up about Lincoln's being FWD only. Put out a decent RWD platform with good performance options and even if it's shared with Ford products they won't complain at all.

 

I think Ford simply missed the styling boat with the early 500/Taurus and Freestyle. They were way too bland. Mulally fixed that as soon as he could.