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.”
