It was bound to happen: Prices at the pump are currently in a free fall (averaging below $2.80 this morning across the United States) and gas-guzzling pickup and SUV sales are climbing. In September – just as gas prices began to drop – full-size pickups accounted for 14.1 percent of vehicle sales (up from 9.2 percent in May) in the U.S. and big SUVs climbed to 2.5 percent.
That said, even though those guzzlers account for a higher share of the market, it doesn’t mean that their raw numbers are up to where they were in their prime. Vehicle sales are down across the board for nearly all automakers.
Still, according to J.D. Power and Automotive News, large pickups have yet to reach the segment peak of 18.2 percent, set in July 2005.
Gas prices aren’t the only thing that has affected pickup and SUV sales, however. Hefty discounts offered by automakers – particularly Chrysler and Ford – to clear out excess 2008 models before 2009s hit the showrooms boosted sales. There were reports in September of some Dodge dealers offering up to 50 percent off of certain 2008 Ram pickups before the redesigned 2009 hit showrooms.
Automakers say they’re still committed to small cars for the future, however. They believe that reduced gas prices are only temporary and that increased future demand when the economy rebounds will see buyers climbing back out of their pickups and SUVs into efficient cars. Every automaker under the sun – even Rolls Royce - has said they’re committed to bringing more efficient cars to market in the near future and they’re hoping the gamble will pay off with consumers.
“The buying public often has a short memory,” Toyota’s Xavier Dominicis told Automotive News. “But we’re looking at the numbers this month, and there’s no discernable evidence of anything changing.”
A GM spokesperson told the industry publication that the automaker is basing its future product planning on “higher fuel prices, not lower.
And Chrysler, which recently announced that its Newark, Delaware, SUV plant (which builds the Dodge Durango and Chrysler Aspen) will close on December 31 – a year earlier than initially expected – is also committed to small cars in the future.
“As a company, we are looking at a future of high gasoline prices,” said Yvonne Malmgren, manager of global sales and incentive communications for Chrysler. “That is what we expect, and we’re aligning our business plans with that idea in mind.”
10/27, 8:58 AM
posted by:
A4
lets hope SUV sales stay down… they are useless
pickups? eh those can sell
but im sick of seeing soccer moms with one 4 year old in a suburban
10/27, 9:20 AM
posted by:
HoosierHero
I don’t have anything against trucks or SUVs. I loved driving a truck years ago. The problem is the gas mileage. Once they figure out how to make them economical and efficient, people will buy them again in droves. I’d hate to think we are going back to the Mustang II days…*shudder.
10/27, 9:23 AM
posted by:
Thunder Chicken
I think the increase is more from fire sale prices on the vehicles than it is for people wanting pickups as daily drivers. Economic downturn and high fuel prices aside, some people NEED trucks, and there’s never been a better time to buy than the past month or two. I’ve seen 4X4 Dodge Rams with the Hemi advertised at nearly 50% off MSRP. If you’re a contractor or landscaper that’s a pretty sweet deal, especially if the lease on your current truck is expiring. A contractor friend of mine was in that situation – his ‘05 Ram lease was up, he turned it in, and drove off with a brand new truck for payments that were 50% less. The leasing company took a bath on his old one – they had the residual set at nearly what the new one’s selling price was. He further lucked out in that he made the deal just before Chrysler stopped offering leasing…
10/27, 9:47 AM
posted by:
EVOQ
A4……why does it matter if they are driving a suburban with one kid?
10/27, 10:18 AM
posted by:
tob
What thunder chicken said.
10/27, 10:38 AM
posted by:
mulletmaster
Evo, perhaps it is because that is nothing but a waste
10/27, 10:45 AM
posted by:
TomF
Hey, if a contractor can pick up a Suburban or F-350 at a fire-sale price because of the downturn, more power to him. But if those tight-jawed, self-righteous, fully subsidized, suburban moms start arguing that they need a new Navigator to go to yoga class in because gas prices are in a momentary dip on their inexorable march to $6/gal, I say slap ‘em. Making those idiots happy in the face of all common sense is why GM and Ford are on the brink today and Chrysler is as good as gone. How about a little leadership from these companies, rather than pandering to the American motorist’s stupidest, most self-indulgent instincts?
10/27, 10:48 AM
posted by:
jonnycat
Toyota’s Xavier Dominics should take a simple math class. If you get 50% of a $40,000 truck you have saved $20,000. That can buy a **** load of fuel.
10/27, 11:00 AM
posted by:
jimothy
I tune into Left Lane News for the intelligent commentary.
Oh, I kid. I kid.
10/27, 12:16 PM
posted by:
johnnycanuck
jimothy, Tuesdays are intelligent commentary day at LLN, so please check in again in 24 hrs. On Mondays we bake banana bread and engage in witty repartee around steaming mugs of Chai tea.
10/27, 12:51 PM
posted by:
EVOQ
mullet…a waste to who? why do you care what the mom drives? who cares. lol
10/27, 12:53 PM
posted by:
t-ak-box
Where do I stand to get the banana bread?
I guess people that really need trucks are getting them at great prices.
10/27, 1:10 PM
posted by:
howsmydriving
Dear god, please make gas prices to up to $5/gallon. If that’s what it takes to kill off SUVs, it will be a small price to pay.
10/27, 2:21 PM
posted by:
mulletmaster
I find it wasteful to drive around a machine that imbibes much more dino juice than necessary thereby reducing the finite amount available just to be “cool”. Is it my money, no. Should I care, no. Perhaps if some folks could pull their head out of their asses they could see that those 3 ton ****e heaps are way more vehicle than they need.
10/27, 4:42 PM
posted by:
Jordan
EVO, the mom could drive a fit with one kid in the back. it’s an enormous waste of resources, and it annoys the **** out of other people.
10/27, 4:51 PM
posted by:
The Stig
Surely people don’t believe these current fuel prices are sustainable.
10/27, 6:29 PM
posted by:
tyler_is_aero_tt
Great, just what we need. More giant, bulky gas hogs running around.
10/27, 6:47 PM
posted by:
HolyDogWater
You drive your sh|tty little “smart” cars and I promise not to say anything about how gay you look, but you have to promise to keep out of other people’s f*cking business. Stop being a bunch of old church women you car nazis.
10/27, 10:48 PM
posted by:
EVOQ
jordan…..if you’re annoyed by what’s in somebody else’s driveway, you have too much time your hands. lol
10/28, 2:47 PM
posted by:
yarddog82abn
At my dealer (where I work) we are at 6 (mostly Ford, Dodge,) to 1 Chevy, it’s mostly the GMAC financing that’s holding them back, but other wise this is the time of year when most business rotate there fleets.