When you remove those who don't really need a large SUV from the market, you are left with the buyers who do, and they are currently Ford's most important customers. With the redesigned 2007 Expedition, Ford is banking heavily that those in the really-need-a-truck crowd will really want a new Expedition.
By Ford's own estimate, the large SUV market has shrunk--considerably. Peaking at about one million units annually between 2001 and 2004, total large SUV sales are estimated at 700,000 for 2006.
    The redesigned 2007 Ford Expedition's intererior comes in stone or black with steel and wood accents throughout the cabin. |
"Those (buyers) that purchased these vehicles for image, or fun, have been chased away by fuel costs," said Ford analyst George Pipas. "Those still in the market actually have the big families and tow the heavy loads."
The Truck
Based heavily on Ford's
F-150, the redesigned Expedition takes its
engine from the big pickup, as well as its front suspension, frame,
and some interior trim pieces. Updates for '07 focused
primarily on styling and performance.
Although Expedition's 300-horsepower 5.4-liter V8 carries over from previous models, Ford promises the new 6-speed automatic transmission will improve fuel economy and passing performance when compared to 2006 models' out-going 4-speed unit.
The big news is the EL. Hoping to take a bigger piece of a shrinking pie, Ford added a long-wheelbase version of the Expedition to its lineup for '07. The new EL (Extended Length) is aimed squarely at Chevrolet Suburban, a stretched version of Expedition's traditional rival, Tahoe.
At 221 inches overall, and with a 131-inch wheelbase, Expedition EL (Expedition MAX in Canada and South America) is 14 and 12 inches longer respectively than the standard length Expedition, and most significantly, within fractions of an inch of the Suburban.
Redesigned for the 2007 model year and already on sale, Tahoe and Suburban have met with critical and sales success. Improved drivetrains, clean styling, and upscale interior treatments have helped Chevy see record sales of its big trucks. Note that sister GM division GMC sells the similar Yukon and Yukon XL, both of which were also redesigned for '07.
Though Expedition was also updated for 2007, it was not as thoroughly revised as Tahoe and Suburban. On sale this fall, the redesigned Expedition comes late to the game, and now faces an uphill battle against its GM rivals.
The Competition: Chevrolet
 2007 Ford Expedition |
 2007 Chevrolet Tahoe |
Although other makers play in the large SUV market, Chevrolet and Ford dominate the category. Of non-luxury-brand large SUVs sold in 2005, Chevy and Ford accounted for roughly 65 percent of sales. That number climbs to 85 percent when GMC is included.
Toyota Sequoia, Nissan Armada, and the discontinued Ford Excursion accounted for the remainder of buyers. Logically any sales growth on Ford's part needs to come at the expense of Chevy. Here's a look at how the two trucks stack up:
- Drivetrains- Expedition's only
drivetrain mates a 300 horsepower 5.4-liter V8 to a 6-speed
automatic transmission. Chevy beats the Ford in available power,
extracting 320 horsepower from a 5.3-liter V8, but pairs it with
a relatively dated 4-speed automatic transmission.
The Chevy engine features GM's Active Fuel Management (AFM) that shuts down four cylinders under light-load conditions to conserve fuel. While the Expedition engine lacks a similar feature, its 6-speed automatic may more than make up any economy gains realized with AFM. Note that Chevy says a 6.0-liter V8 with 355-horsepower will arrive for Suburban late in calendar 2006. - Towing- Though most buyers never near these limits, maximum towing capacity is a number beloved by advertisers, especially if their product can claim superiority. Here Expedition EL easily trumps Suburban, boasting 9000-pound capability for four-wheel drive versions, and 9200 pounds for rear-drivers. Both figures are exactly 1000 pounds higher than those for comparable Suburbans. Ford has not yet rated the standard-length Expedition.
- Cargo Hauling- Although Suburban boasts slightly more cargo volume than Expedition EL (138 cubic feet versus 131), Expedition boasts a flat and flush-folding third-row bench that never needs to be removed. By comparison, Tahoe and Suburban's third-row seatback folds flat, but rests 6-inches above the load floor. Ford has not yet published interior volume figures for the regular-length Expedition.
- People Space- Both Chevy and Ford claim nine-passenger capacity for their large SUVs, but Expedition enjoys an edge in third-row room and access. The Tahoe and Suburban third-row bench rests above the load floor, limiting legroom and complicating access. Expedition's rear-most seat is designed into the vehicle and offers passengers a real foot well and additional headroom.
- Suspension- While few shoppers will appreciate the distinction, Expedition features a true independent rear suspension. Unlike the Chevy's solid-beam rear axle, the Ford arrangement affords engineers better control over wheel movement. Independent rear suspensions are generally credited with improving ride quality as well as handling in bumpy corners.
- Refinement- Though highly subjective,
Chevy's efforts to improve the Tahoe/Suburban cabin
experience have met with critical acclaim. Improved interior
design and materials, as well as efforts to reduce noise and
improve road isolation have helped Chevy win buyers.
Ford claims increased use of Quiet Steel (a metal "sandwich" that separates layers of steel with a softer material to reduce harmonic resonance) to reduce interior noise levels, but has done little with materials or general design. Though well regarded before the update, Expedition's interior may seem a generation old to buyers who cross-shop the Ford against the Chevrolets.
 The redesigned Expedition towing a Chevrolet Tahoe. |
The 2007 Expedition's significance to Ford cannot be overstated. Ford's lagging sales and deteriorating financial position seriously raise the stakes in the large SUV battle. Analysts typically estimated profits from large SUV sales at $8000-$10,000 per vehicle--several times the return on a typical midsize sedan.
With recent sales data suggesting softness in the large pickup market, Ford's last bastion of market dominance, the maker badly needs a hit in another segment to shore up profits.
Expedition has the potential to at least hold its position in this segment, but gaining market share will likely require expensive incentives. If the large SUV market continues to shrink, incentive spending will likely rise, eroding revenue from one of Ford's last profit center
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