GM hopes to drive up sales for soup-up vans
By John Porretto
Associated Press
DETROIT — An automotive fad of the 1970s, customized vans, might be the next big thing coming out of Detroit.
The big vans that were popular in the 1970s are being touted as an affordable alternative to the ubiquitous sport utility vehicle. General Motors has contributed $2.1 million to a marketing effort that will target outdoor enthusiasts and others who might be ready to trade their SUVs for premium vans that can seat up to nine.
The big vans once decorated with shag carpeting and beads have evolved into sophisticated vehicles for families and groups alike, and General Motors Corp. and two dozen companies are spending a couple of million dollars to spread that message and try to revive demand for the big, souped-up rides.
Making a comeback
GM helped form the Conversion Van Marketing Association last year to raise awareness of the customized vans — the Chevrolet Express and GMC Savana in particular — and to dispel outdated perceptions of vehicles decked out with wild paint jobs and crushed-velour upholstery.
Today's vans, which typically cost less than a loaded full-size SUV, feature leather seating, central air conditioning, home theater-quality sound and flat-panel televisions.
GM's investment in the effort underscores the ultra-competitive nature of the U.S. vehicle market, where the world's largest automaker can't afford to cede one iota of business. GM's chief competitor: cross-town rival and No. 2 U.S. automaker Ford Motor Co.
"With the proliferation of vehicles over time — SUVs, crossovers, etc. — this is one more niche vehicle we can offer the consumer," said Ross Hendrix, GM's marketing director for commercial vans.
Conversion van sales peaked in the early 1990s but have fallen steadily over the past 10 years because of the popularity of hulking SUVs. Sales totaled roughly 181,000 in 1994, fell to 76,000 in 2000 and dropped even further to 38,000 in 2003, when Dodge ended production of its full-size Ram vans, according to Conversion Van Marketing Association figures. But Dodge added the Sprinter, which is available for conversions, to its lineup in 2003.
That basically limits the choices to the two GM models, the Sprinter and Ford's E-Series model. Virtually every major automaker, in contrast, sells some type of SUV.
The CVMA is composed of 24 manufacturers who buy the vans from GM, outfit them with premium paint, electronics and customized interiors and sell them to GM dealers for sale to consumers. About 800 of GM's 7,400 dealers sell conversion vans, according to the CVMA.
The CVMA's goal is to boost sales of GM vans by 25 percent in the next two years by raising awareness through a Web site, direct mail and other avenues, said association president Rod McSweeney, owner of Southern Comfort Conversions Inc. in Trussville, Ala.
The timing for the push is ideal, McSweeney said, because of the metamorphosis of the vans. After upgrading the chassis in 1996, giving it a smoother ride, GM enhanced the styling and added an all-wheel-drive option in 2003.
GM contributed $2.1 million to the marketing effort, which McSweeney said will target outdoor enthusiasts, college alumni groups with a penchant for tailgating and others who might be ready to trade their SUVs for premium vans that can seat up to nine.
