High gasoline prices hurt U.S. sales of SUVs

International Herald Tribune ^ | WEDNESDAY, MAY 3, 2006 | Jeremy W. Peters

[newgeezer]

DETROIT—Americans shied away from large sport utility vehicles and pickup trucks in April as gasoline prices approached $3 a gallon.

With a battery of new SUVs waiting in the wings, domestic automakers are now facing the very scenario they had hoped to avoid.

Despite gains at Toyota Motor and Honda Motor, declines at General Motors, Ford Motor, DaimlerChrysler and Nissan Motor pushed vehicle sales in the United States down 0.1 percent in April, according to Ward's AutoInfoBank.

General Motors saw the biggest drop, selling 7.3 percent fewer vehicles than it did in April 2005.

For the first time, Toyota became the No. 3 car seller in the United States for the month, passing DaimlerChrysler. That marks a symbolic victory for Toyota, which occasionally outsells the Chrysler division but had never before outsold all of DaimlerChrysler in the United States.

The latest surge in fuel prices poses a long-term problem for U.S. auto companies, which had been hoping that gasoline prices would moderate and make SUV sales easier. Now, analysts warn that it may be harder to get consumers to buy a gasoline-thirsty vehicle when the oil market remains so volatile.

[newgeezer]

Keep pushing those SUVs, boys. The sheeple will buy whatever you care to sell. Or not.

Last month, big SUVs and pickup trucks were among the vehicles that had the sharpest sales drops. The Ford Explorer was down 42 percent compared with April 2005. Sales of the Jeep Grand Cherokee declined 41 percent.

[cpprfld]

2005 wasn't a great year to sell SUV's either.

[fhlh]

and GM is soooo smart to push the release of the 2007 Tahoe/Suburban/Escalade/Yukon SUV...

[FormerLib]

Anyone checking on the windfall profits for manufacturers of small cars? I hear tell those "windfall profits" are an evil thing.

[rhombus]

Anyone checking on the windfall profits for manufacturers of small cars? I hear tell those "windfall profits" are an evil thing.

Excellent! Toyota and Honda are clearly gouging us... how much are their retirement packages? A windfall profit tax would be just the thing to create a shortage of these smaller vehicles too. ;-)

[TruthShallSetYouFree]

High gas prices cause people to purchase cars
that get better mileage. This will lower the demand
for gas, which will result in lower prices. This
will encourage people to buy SUV's again. And on and on. It is called Supply and Demand. If left alone, it is
as immutable as the Law of Gravity.

[Trust but Verify]

Like nobody could have seen this coming! Ford and GM are in deep doo-doo if this trend holds.

[Brett66]

Ford Explorer was down 42 percent

Ouch, they better respond to the changing market conditions quickly.

[ContemptofCourt]

You can get used SUV's for rock-bottom prices these days.

[Heatseeker]

[chuckles]

Nobody has figured out how to pull their 28ft boat, 27ft camper, or their air conditioned horse trailers with a Geo or Kia. It's not an option for many in Texas. There are many that drive with one or 2 people in an SUV, but they still need them for other activities. Doing away with SUV's will change our lifestyle and our economy. New Yorkers may have a choice, but many down here need them for work and play. Buying an ecno box for running to the store and school may be an option for some, but for others it will be just another payment with insurance that they can't afford.

[pissant]

Yep, and since I'm ready to buy one, I couldn't be happier.

[Cymbaline]

This just in:

THE SKY IS BLUE!!

Film at 11.

[Uncle Fud]

but many down here need them for work and play.

OK Freepers, who'll be the first to spot the logical flaw in this sentence?

[Disambiguator]

Need is subjective. If your "play" involves horses, boats, ATVs, or anything else that needs to be towed, you will have to have a light truck (pickup, SUV, or van).

[Extremely Extreme Extremist]

Well said. In the South, pickup trucks and SUVs are a necessity. There are many unpaved, gravel, and dirt roads that would wreak havoc on a passenger car.

[zarf]

Grandmas driving SUV's on flat suburban streets in Florida crack me up.

Another example of why gas prices are good for the country. People only change when the prices force them to. Companies change when the consumer choices FORCE them to.

[Extremely Extreme Extremist]

OK Freepers, who'll be the first to spot the logical flaw in this sentence?

What logical flaw? What about those in the equine or veterinarian profession. Even those in the news profession needs SUVs and vans. SUVs and pickups serve a purpose. Demonize them at your peril.

[absolootezer0]

oh.. is that why i got almost $10k off the price of the 2005 grand cherokee i just bought? :)

[Labyrinthos]

High gas prices cause people to purchase cars that get better mileage. This will lower the demand for gas, which will result in lower prices.

Perhaps, but not necessarily. I've seen studies that suggest that people who own fuel efficient vehicles actually drive more because their vehicles are fuel efficient, which means that some drivers may be using more gas than they would otherwise use if they drove an SUV.