By Jeff Bennett
Mark Unger bought a European-style work van for his Orlando,
Fla., restaurant business and strange things began to happen.
Driving was fun again, he says, and customers even asked to pose
for photos in front of it.
The 35-year-old restaurateur's new Ford Transit, a 9-foot-tall
van with plenty of space to cart equipment and Mediterranean
dishes, to replace a truck that he said required an entire parking
lot to turn around.
His new van, decorated with a cartoon chef, "drives like a giant
golf cart," he says. "We have had employees who have never driven a
truck get in and drive the van with no problems. It has definitely
done its job."
Newer full-size vans that drive like cars and get up to 22
highway miles on a gallon of gasoline--including Ford Motor Co.'s
Transit, Daimler AG's Mercedes-Benz Sprinter, Nissan Motor Co.'s
NV, and Fiat Chrysler Automobiles NV's ProMaster, are making the
lowly panel van fun again. Sales of these vehicles are up 11%
through August compared with the same period last year.
While small businesses like Mr. Unger's Hubbly Bubbly love the
cool factor, corporations say the new designs are decades ahead of
their predecessors in fuel economy and are more easily customized
for delivering packages, people or cargo.
"One of the reasons why we are looking for this type of this
vehicle is the high fuel efficiency," said Time Warner Cable Inc.
spokeswoman Shelley Loo. The telecommunications giant replaced some
older panel vans with 500 diesel-powered Transit vans and improved
fuel economy by 47%, she said.
Ford, which began producing its Transit in the U.S. in April
2014, has America's top-selling full-size van, which are designed
primarily for business use, unlike minivans.
Its sales of the full-size model lag behind the top-selling
Honda Motor Co. Odyssey minivan, but not by much. Honda sold 13,400
of the family haulers last month while Ford sold more than 10,200
Transits. Its smaller Transit Connect work van added nearly 4,000,
pushing the combined total above the Odyssey.
Others are rushing into the space. In October, Germany's Daimler
will offer U.S. buyers its smaller Metris van and starting making
its Sprinter in Charleston, S.C., to take advantage of soaring
demand. General Motors Co., which still sells the old-style
Chevrolet Express and GMC Savana work vans, released its first
European-styled City Express van last December based on a Nissan
NV200 model.
Bob Hegbloom, head of Fiat Chrysler's Ram division, said the van
boom has been fueled by the economic upturn and demand for more
capable vehicles for work and weekend getaways.
"Vans used to be rear-wheel drive [and] only powered by big V-8
engines that hurt their fuel efficiency," Mr. Hegbloom said. "Today
they are front-wheel drive, making them easier to handle and are
powered by a V-6, which is more economical."
Ram's Euro-style ProMaster sales have nearly doubled this year
through August over the same period in 2014. The company began
production of the ProMaster two years ago.
Sales of the high-top version of Ford's Transit, favored by
delivery companies, have been so strong that Ford cut a deal with
three rail companies, including Norfolk Southern Corp., to raise
the shelving on 400 railcars so shipments of its taller models
could keep up with demand.
"We have been running these vans on European roadways for years
and much of what drivers want over there they want here in the
U.S.," said Yaro Hetman, who runs Ford's Transit marketing efforts.
"They like easy drivability, fuel efficiency, tighter turning
radiuses and that is what I think make these vans attractive."
The new vans are profitable. The average transaction price of
large vans like the Transit and ProMaster shot up 10%, or more than
$3,000 in July compared with the same period a year ago, while
sales incentives fell modestly to $1,742, according to automotive
researcher J.D. Power & Associates.
The California research firm estimates that since 2010 prices of
large vans are up 27.6% while incentives ae down 15.3%.
The vans are ripe for customization. Industry experts estimate
commercial buyers spend between $2,000 and $3,000 on accessories
for storing equipment, and consumers often spend the same amount
for camping or other updates.
Adrian Steel Co., a Michigan-based commercial vehicle outfitter,
recently invested $4.7 million to open a site in Kansas City for
such work. Recently, a line of Ford's Transit Connect vans
belonging to a local cable company were lined up bumper to bumper
to be outfitted.
Families that traded old-style Chevrolet Astros for more
accessible minivans are returning to the fold. Some auto makers see
a potential comeback for U.S. makers of European style vans for
campers and outdoor enthusiasts, a market that largely disappeared
with the rise of minivans. Some work vans are even squeezing into
suburban driveways as the new family hauler.
Alan Feld, chief executive of Sportsmobile in Fresno, Calif., is
expanding production so he can boost his custom camper van sales to
450 a year from 350. He converts Nissan NVs, Sprinters and other
vans into campers with furniture, a galley and sleeping areas.
"I remember a time when you wouldn't even let your daughter near
a van," Mr. Feld said. "It's good to see that has changed."
Write to Jeff Bennett at jeff.bennett@wsj.com
(END) Dow Jones Newswires
September 04, 2015 18:30 ET (22:30 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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