Just a few months ago, gas quickly climbed to and surpassed the $4 a gallon mark. Just as fast as gas prices were rising, people rushed to trade in their thirsty trucks and SUVs for more efficient models. But now that oil prices are below $70 a barrel, will people begin to put trucks and SUVs back on their shopping lists?
According to George Pipas, Ford Motor Co.’s sales analysis and reporting manager, the answer is no. Although gas prices have now dipped below $3 throughout most of the country, Pipas says the weak economy is enough of a reason to keep buyers from reverting to old over-shopping habits.
“The driver of new-car sales has and always will be job and income growth,” Pipas told Automotive News. “There is scant little right now. In fact, they’re contracting, not growing.”
General Motors sale head Mark LaNeve agrees with Pipas’ overall view, but thinks low gas prices could cause a few shoppers to come back to the segment. However, LaNeve is still bearish on the future of trucks and SUVs and has ordered that fuel economy remain a pillar of GM’s advertising.
Low gas prices and big incentives might drive truck and SUV sales in the short term – the Chevrolet Silverado was actually the best-selling vehicle in the U.S. last month – but U.S. consumer will likely take the once bitten, twice shy approach to car shopping from here on out. After all, just because gas is $3 now, it doesn’t mean it can’t shoot back up to record highs in a matter of months.
