Large SUV Sales Down Nearly 20% For Big Three In 2005 - Detroit News

[hatrack]

EDIT

"After downplaying the impact of rising gas prices for months, Ford Motor Co. and General Motors Corp. now acknowledge they're losing sales. Last week, Ford cited fuel prices as a key factor when it warned investors that its 2005 profits would be $900 million lower than expected. GM has forecast a huge first-quarter loss as it struggles with weak sales of several of its large, aging SUVs, such as the Chevrolet Tahoe. And analysts now question the automaker's assertions that a slew of new large SUVs and pickups coming out next year will solve its problems.

"I can say safely that the love affair (with large SUVs) is not over, but it is waning," said Jesse Toprak, an analyst with Edmunds.com., a California-based automotive Web site. With gas reaching a record $2.31 per gallon in Metro Detroit last week, some SUV owners are experiencing buyers' remorse.

Susanne Zettler of Macomb Township was thinking of safety and room when she bought a Chevy Suburban. On Monday, after plunking down $65.78 to fill it up, she was thinking about a trade-in. "I would love to have a car that wasn't using so much gas," said the mother of three. "It was $40 each way to go up north last year. Now it's probably going to be $50."

EDIT

Sales of large SUVs built in the United States have fallen nearly 20 percent so far this year. Foreign-made sport-utes also are feeling the pinch. Demand for the Nissan Pathfinder Armada, for example, has been weaker than many expected. Large SUVs such as the Ford Expedition and Hummer H2 take an average of 91 days to sell, up from 67 days in March of last year, Toprak said. To clear lots in some markets, Ford recently began offering an additional $1,500 in rebates on Ford Expedition models that have been on dealer lots for more than 90 days. As demand has softened, automakers have increased incentive spending by 30 percent -- to $4,290 per vehicle -- since March of last year. But buyers still aren't taking the bait, he said."

http://www.detnews.com/2005/autosinsider/0504/12/A01-147923.htm

[solinvictus]

1. Duh!

[hatrack]

3. My favorite part of the article?

The part about how Detroit's new SUV lineup will pump up sales in the next year or so. :puke:

[nadinbrzezinski]

2. This is comiing from teh official department of DUH right?

[Zenlitened]

4. And isn't that where they make their money?

I think SUV sales are what's keeping Detroit limping along at all. :scared:

[phantom power]

5. I think it's not worse than it is, because most people still think

of these gas prices as a "spike". When it really sinks in that this is the new normal, things will really get fun for Detroit.

I can't wait for them to roll out the "buy GM, or you must hate America" campaigns again.

[noonwitch]

10. They need a push to start making affordable hybrids

And to look for safe, renewable alternative fuels. This is why Gore would have been such a good president, he would have shown leadership in this area, by encouraging companies to research and develop new vehicles and energy sources, and lessening our dependence on foreign oil.

I'm getting a new car next week, if all goes well. I'm going to lease a 2005 Focus. I get an X plan, they are good on gas, and I'm currently driving a 98 Escort that is rapidly falling apart on me, although the Escort is very good on gas, even in poor shape.

[IrateCitizen]

12. I'd rather see diesel than more hybrids, to be honest.

Diesel technology is there NOW, it's much cheaper than hybrid, and it's only marginally less fuel efficient.

I was stuck on hybrids for a while, but I think our next car will be a VW Golf TDI.

[inanna]

14. We have a Golf TDI...

Cute car, excellent mileage. Our friend borrowed it on the weekend to drive to Toronto (2 1/2 hours from here). He said the needle on the fuel gauge didn't budge. Now he wants to buy one.

[Ron Green]

6. The scariest thing is that, even if large SUV sales were to end TOMORROW,

all the ones now on the road will age, and as they age, and their brakes and tires and suspensions wear and fail, these badly-designed and hard to handle P'sOS will fall into the hands of those who can afford them: first time drivers, the uninsured, and maybe DUI's. The damage from America's childish affair with these dangerous toys has just begun.

[minerva50]

8. Too True.

It really scares me when I see teenagers driving SUV's. I don't think I'd have the confidence to drive one myself, even if I didn't have other objections to them. That high center of gravity and long braking distance requires a really competent driver.

[anarchy1999]

7. SWEET, BEEN WAITING TOO LONG AND FINALLY! It has come to

pass. See ya, big 3.

Make a more environmentally friendly vehicle and see what happens or just be stupid and keep on keeping on.

[lectrobyte]

9. You'd think the memory of the 70's

gas shortage and the resulting sudden growth in market share for companies like Toyota would help with those Detroit produt planning decisions. But no, all I'm seeing is the new Hummer H3 coming out later this year, and more SUVs.

[IrateCitizen]

11. Detroit is nothing, if not consistent in their pigheadedness...

They chose to fight litigation against gastanks more likely to explode than to change the design. They lost.

They chose to fight calls for lap-and-shoulder safety belts rather than change. They lost.

They fought against offering more fuel-efficient models prior to and during the 1970's gas crisis. They lost.

They decided to spend money on lobbying against higher CAFE standards rather than put money into R&D to change. They're losing.

They decided to place their bets on gas-guzzling SUV's rather than invest in hybrid technologies. They're losing.

The sad thing is, there will probably be another bailout waiting for them at the end of this debacle as well, no matter the state of government finances.

[anarchy1999]

13. You say it all so well, thank you. I've always held your opinions in the

highest regard and here you've gone and done it again! Thanks and kudos to you, IC. And yes, I believe we will live to see another damned bailout of an industry non-deserving.

[LondonReign2]

15. Good.

Does this mean I might actually be able to see the road in front of me again sometime soon, rather than the fat ass of an SUV?

[Ron Green]

16. Not soon, I'm afraid. Even if they quit making the damn things, people

will still drive the ones they've already got. Although $3-$4 a gallon would park quite a few of 'em.