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J.D. Power: Flood of New SUV Models to Increase Canadian Competition

13 April 1998

J.D. Power and Associates Reports: Flood of New SUV Models Will Continue to Increase Competition in the Canadian Market

                Focus on Luxury Features is Key Differentiator

    AGOURA HILLS, Calif., April 13 -- The J.D. Power and
Associates 1998 Canadian Sport Utility Vehicle Market Assessment(SM) reveals
that the supply of sport utility vehicles (SUV) is expected to finally catch
up with and exceed demand, intensifying competition in the Canadian market.
According to the study, the driving force behind the trend is a flood of 17
new SUV models being introduced into the Canadian market over the next five
years.
    The study shows that the SUV market will continue to grow in 1998 and into
the next decade, albeit at a slower pace, on the heels of strong mini and
full-size SUV sales.  In 1998 alone, the segment is projected to expand by
20%, pushing the SUV share of the total Canadian light-vehicle market up to
12.8%.  Looking ahead early into the next decade, the segment is expected to
account for close to 15% of the light-vehicle market in Canada.
    "The SUV market in Canada is increasingly fragmented, therefore
manufacturers must be able to maintain the distinctive characteristics that
have made SUVs so popular," commented David Marrocco, an analyst at J.D. Power
and Associates.  "Key developments within the SUV market will be the emergence
of new full-size and mini SUV models, with increasing emphasis on luxury
features.  The Canadian SUV market needs to effectively incorporate these
traits to satisfy consumers," Mr. Marrocco said.
    The 1998 Canadian Sport Utility Market Assessment also addresses a
multitude of other intriguing findings, including a complete socioeconomic and
demographic analysis of SUV consumers.  The report takes a detailed look at
SUV buying behavior and migration patterns, with special emphasis placed on
the role of the midsize car and compact van markets.  The report also delves
into manufacturer strategies and focuses on new product introductions and
anticipated sales projections for the SUV segment.  In addition, the report
examines the market characteristics and demand factors that are shaping
regional SUV markets across Canada.
    J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting and customer satisfaction.  The firm's quality and
satisfaction measurements are based on actual customer responses from over one
million consumers annually.  With its headquarters in Agoura Hills,
California, the firm also has U.S. offices in Torrance, California; Michigan;
and Connecticut.  Its international locations include Japan, Korea, England,
Canada and Brazil.
    J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com.  Media email contact: john.pepitone@jdpower.com.
    This press release is provided for editorial use only.  No advertising or
other promotional use can be made of the information in this release or J.D.
Power and Associates survey results without the express prior written consent
of J.D. Power and Associates.

SOURCE  J.D. Power and Associates