The next big thing

A wave of multidimensional cars is descending on the planet, and we're not talking about the ones in Michael Bay's recent blockbuster. Unlike the title characters in "Transformers," these things won't morph between a vehicle and a robot, but they do serve multiple roles and have split personalities of their own.

Part SUV, part sports car, part status symbol, this niche of vehicles is dubbed "compact luxury crossovers," and they are invading the auto industry in growing numbers.

This class of vehicle is usually traced to the BMW X3, which debuted in 2004 and was pretty much the lone entrant in the segment. But in the past couple of years, more than a half-dozen others are now competing to be king of the hill, with even more on the horizon.

Starting with the introduction of vehicles like the Toyota RAV4 in 1996 and Honda's CR-V in 1997, small "crossover" vehicles themselves are still relatively new to the automotive scene, and there's still no exact standard as to what constitutes one of these cars.

In a recent column, Car and Driver's David E. Davis Jr. wryly tackles that nomenclature issue this way: " 'Crossover' is meant to imply an automotive concept wherein the best features of minivans, sport utility vehicles and station wagons are bundled into a single family-transportation device that bears a strong resemblance to the aforementioned vehicles without the public-relations shortcomings of any of them."

Even the expert automotive testers at Consumer Reports have had difficulty categorizing this new segment, in which prices begin in the mid-$30,000 range.

"You can call almost any SUV a crossover these days because most are based on cars. Internally we've struggled with this, too," says Jake Fisher, senior automotive engineer at Consumer Reports. (In the end, Consumer Reports settled on "compact sporty sport utility vehicles.")

Tracing SUVs back to their roots as little more than rugged, utilitarian people haulers in decades past to the amenity-loaded, DVD-playing luxury vehicles of today, Fisher says, "They've morphed from workhorse to glorified station wagons."

Set for growth

Bucking the usual trend of vehicles getting bigger, compact luxury crossovers are a segment of the industry that is growing because of cars that are shrinking.

"Every segment has its ebb and flow," says Jack Nerad, executive editorial director of Irvine-based Kelley Blue Book. "There was a time when pony cars were major volume. Now, the body-on-frame sport utility (segment) is on the wane somewhat. I think this architecture has a lot of staying power."

Nerad points to several positive attributes as to why these cars are becoming so popular: "They have a nice driving position. You are seated comfortably. You don't have to drop down into them, which is good for an aging population. And they give a decent degree of visibility before and in back of you, vs. let's say a low-slung sports car."

Luxury versions of these downsized crossovers also include the kind of high-end features such as leather interiors, moon roofs and powerful engines that are found in their larger automotive siblings, but all in a platform about a foot in length smaller than their midsize kin.

Torrance-based Acura, which is Honda's luxury division, was among the first to take on BMW's X3 when it launched the RDX as a 2007 model in 2006. Others have since gotten in on the action, such as Audi with its Q5, Infiniti with its EX, Lincoln with its MKX, and Mercedes-Benz with its GLK. All are smaller siblings to bigger SUVs in each automaker's lineup.

For automakers, the appeal and potential for growth is pretty obvious, especially after seeing the initial success of midsize luxury crossovers such as the BMW X5 and Lexus RX.

According to John Watts, senior manager of product planning for Acura: "There was a general downsizing. People said, 'I want luxury, but I don't need all the extra size.' We, like many others, saw an opportunity there.

"It's taken about seven years for people to (accept a new segment), and then they really take off," Watts says, pointing to the Lexus RX, which debuted in 1998, and Acura's own MDX, which hit the market in 2001. "About six or seven years later, we introduced a downsize model, and it's taken some time for that segment to take off. Just as the (Toyota) RAV and CR-V have established their reputation. We see that happening in this segment, too. Everyone's jumping into this segment."

Watts and Nerad also point out that further growth in this category is expected not only because of the new crop of young professionals who are the prime market for these vehicles, but also because of those on the other end of the demographic spectrum — baby boomers and empty-nesters who no longer need a big SUV with three rows of seats.

Worth the cost?

While each automaker tries to point out their own unique features in these small crossovers, one similarity is that these vehicles usually command about a $10,000 premium over similar models from nonluxury brands. For example, a base Honda CR-V starts at $21,245, while a base Acura RDX goes for $32,520.

And even though that price may appeal to a young professional who's not ready to step into, say, a $50,000 BMW X5, "they're not bargains here," Consumer Reports' Fisher says.

"You are paying a lot for what you get. One way to look at it is the comparison of the (Subaru) Forester turbo and RAV4. You are paying about $10,000 more and not getting anything more tangible."

Acura's Watts defends premium pricing on models such as his company's RDX, saying, "If you take a look at the difference between any mainstream product and a luxury vehicle, the big differences are styling, power and performance, and interior features such as a hands-free telephone. Then there is the buying experience. It's a notch up in every experience."

These smaller crossovers might also advertise themselves as being easy on fuel, but that isn't always the case, Fisher warns.

"If you look at luxury vehicles as a whole, with the Lexus RX 350 being the best-seller, (buyers) might say, 'I don't need something that big or uses as much gas,'" so instead, they opt for a smaller crossover, Fisher says. "The problem is, these vehicles actually all get worse fuel economy than the RX 350. Twenty-one (mpg) overall is what we at Consumer Reports got for the RX 350. The Q5 gets 19, the X3 gets 19, the RDX with turbo gets 18."

So what's the appeal of these compact luxo-crossovers? Status, Fisher says.

"You could argue people are buying the (BMW) 3 series for status, too, but the 3 is a great car," he says. "It's an absolute pleasure to drive. These vehicles, for the most part, aren't. The GLK does not handle like any Mercedes-Benz sedan."

Consumer Reports doesn't frown on smaller crossovers altogether, but Fisher says that, in the end, his nonprofit ratings company thinks buyers can get a much better deal on cars equipped with luxury features, sans the luxury badging.

If you're in the market for a compact luxury crossover, Fisher advises: "Take a look at them, drive them. But drive a loaded Subaru Forester Limited with leather; drive a RAV4 with leather and the V6, and if you still think there is really something more you're getting for your extra $10,000, then go for it. But in our ratings, we don't see (consumers) getting more."

• THE CAST EXPANDS

Just about every luxury automaker now offers a compact crossover. Unlike bigger SUVs with three-row seating, these smaller vehicles only seat five and are 182 inches in length, give or take a few. All have standard or available all-wheel drive. Here are the contenders, with starting prices:

Acura RDX, $32,520

Audi Q5, $37,350

BMW X3, $39,700

Infiniti EX35, $33,800

Land Rover LR2, $36,350

Lincoln MKX, $38,345

Mercedes-Benz GLK, $34,600

Volvo XC60, $32,395

• LEADER OF THE LUXURY PACK

Because some of the cars in this segment are only months old and their sales are tracked differently, it's difficult to tally the exact percentage of sales that this segment makes up compared with others. But the sales leader among the eight models profiled in "The Cast Expands" is the Mercedes-Benz GLK, which debuted in January and sold 12,792 units through July, according to figures compiled from the automaker and AutoCount data from Experian Automotive.