Only automakers' newest large SUVs, pickups are spared from sales drop

[Bozita]

April sales figures. See table and graph at link

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060503/AUTO01/605030399


Gas costs take toll on Big 3

Only automakers' newest large SUVs, pickups are spared from sales drop.

Christine Tierney and Brett Clanton / The Detroit News

May 3, 2006

Domestic automakers lost sales ground again in April as consumers shunned all but the newest large vehicles after gas prices neared the $3 mark.

Toyota Motor Corp. nudged DaimlerChrysler out of third place in the U.S. market for the first time last month after boosting its share of new vehicle sales to 15.3 percent.

General Motors Corp. reported the biggest drop in sales last month of any major automaker, as brisk demand for its new full-size Chevrolet Tahoe and GMC Yukon sport utility vehicles failed to offset falling car sales. GM sales were down 10.8 percent overall.
Ford Motor Co. and DaimlerChrysler AG's Chrysler Group reported strong sales for their new cars but plunging sales of their older SUVs and pickups.

In a market that was down 4.2 percent overall, Asian brands picked up market share, as Toyota and Honda Motor Co. increased sales. The combined share of Detroit's struggling automakers shrank to 53.6 percent from 56.3 percent a year earlier.

more...

[joefree1]

1. Of course

It's hard for knuckle draggers to look up and see the high gas prices.

[ileus]

7. A friend calls me up and sez you gonna be home...

shows up to show me his new 06 hold over Chevrolet Tahoe. I make a few comments about fuel mileage and gas prices, he looks at me and states. If i ever get to the point where fuel mileage matters promise you'll come kill me, if it doesn't have a V8 I'm not going to own it.

[superconnected]

27. It will be interesting when he actually is paying $5 per gallon.

[regnaD kciN]

34. Except that all of us will be paying $5/gallon as well...

:-(

[corporate_mike]

2. Toyota's Tundra -- 15 mpg -- selling well

[ljaycox]

25. My Tundra gets 20 mpg on the highway...

[TheWatcher]

29. Whoopde-doo for you

[2Design]

3. aren't these big tax write offs anyway

I know most people with money don't care and say - if I can afford and I want -= I will drive it

[Bozita]

4. Cadillac Escalade sales were UP for April ... by 127%

http://www.theautochannel.com/news/2006/05/02/005476.html

"Given that the industry came in somewhat below our initial expectations, we are pleased that our retail sales were in line with the targets established in our North America turnaround plan," said Mark LaNeve, General Motors North America vice president, Vehicle Sales, Service and Marketing. "Consumers continue to respond very favorably to our new products, particularly the all-new Chevy Tahoe, GMC Yukon and Cadillac Escalade, resulting in a combined 15 percent sales increase compared to last month."

Total sales of all GM launch vehicles were up 5 percent compared to March and accounted for 28 percent of GM's total deliveries for the month. The success of GM's launch vehicles is another critical component of GM's North America restructuring plan.

Despite increases in fuel prices and contrary to industry trends, GM posted a 2 percent improvement in total truck deliveries, driven by continuing strong sales results for its all-new full-size sport utility vehicles and full-size pickups. Chevrolet Tahoe sales were up 35 percent in April. Of the 13,138 total deliveries, 10,607 were 2007 models. GMC Yukon posted a 36 percent sales gain in April, with 5,978 total deliveries. There were 4,862 2007 Yukon deliveries. April sales of the 2007 model were 48 percent greater than March results. Cadillac Escalade sales improved dramatically, with a 127 percent improvement over last year. There were 4,109 total sales, of which 3,258 were the all-new 2007 model. 2007 Escalade sales in April rose 23 percent compared to March.

Chevrolet Silverado deliveries rose 9 percent in April, and GMC Sierra sales were up 4 percent. The continuing strength of GM's full-size pickups is noteworthy, given that the product is approaching the end of its lifecycle. The new full-size pickups begin arriving in dealers' showrooms in the fourth quarter of this year.

more...

[corporate_mike]

10. Prius sales fall 25% in April :(

[AndyTiedye]

17. There Was a Huge Spike at the Start of the Year

A lot of people held off until the start of the year so they could get the new tax writeoff for hybrids.
Then it took a while to get all those cars built.

It's not surprising that it may have dropped a bit by now. There sure are a lot of new Priuses around here though.

[Lochloosa]

21. The reason for their fall was lack of product...not demand.

[TheWatcher]

30. This is the second time he's posted this today

Maybe he just likes saying it.

[jseankil]

5. A lot of people need large SUV's and trucks

So it's not surprising that the new models are selling well. There is a need for them no matter what the cost of gas is.

[uncle ray]

8. hahaha!

i'll just tell myself your using Colbert style sarcasm.

[jseankil]

15. ?

People who do construction, home or otherwise, and those who camp alot the SUV is heaven sent. Sorry if you don't agree but that's the truth.

[NickB79]

18. HAHAHAHA, Escalade sales up 127% for construction work?

I'm sure if I drive over to the new housing development or highway expansion I'm gonna find tons of Escalades hauling around big loads of material :sarcasm:

Hey, I bet the spinner rims on the Escalade I saw yesterday were put on to scare away bears while out camping, right?

[jseankil]

20. Drugs need to get from Mexico to the U.S. somehow.

If Escalade is the auto of choice so be it.

Your war against SUV's because they transport fresh white powered to the states is ludicris. Help those who abuse the drugs rather than blaming the SUV's.

[TheWatcher]

32. And you get the award for single most ridiculous post on DU today

[NickB79]

39. WTF does the drug war have to do with Escalades?

Where exactly did you see a statement about the war on drugs in my post????

I hate SUV's because they waste gas and pollute the air more than most other vehicles on the road.

[TheWatcher]

31. Grape Or Cherry?

[CottonBear]

9. Farmers, horse owners and contractors need large pick up trucks.

However, soccer moms, developers, doctors, dentists do not need Hummers yet, they get them virtually for free because of the tax write offs.

edit: It is not very safe to pull horse trailers (except those European kinds made to be pulled by European sedans) with an SUV. One really needs, at a minimum, a full size, V-8 pickup for two horse trailers and a V-8, 4 X 4 2500 HD is required for anything larger.

[sarcasmo]

16. How many people with large SUV trucks really need them.

I drive for a living and see way more single people in big SUV's or trucks. I bet if gas gets to $5.00 a gallon they will wish they bought a V6 instead of their trendy Tahoe or Yukon or Escalade.

[AndyTiedye]

19. A Lot of Truck Owners Are Asking Themselves That Question Now

as they watch the numbers next to the $ sign going up faster and faster at the gas pump.

A hybrid V6 might actually have more power than a V8, and is likely to burn about half as much gas.

[One_Life_To_Give]

22. 1 Big vehical may be cheaper than 2

One problem is people who need the larger vehical only maybe 10-20% of it's annual mileage. The extra costs associated with having a additional economy vehical can easily exceed the fuel savings.

In my case it would cost over $1000 per year just to insure an extra vehical. Although my total miles driven in any year woiuld be the same.

[superconnected]

28. At $41.00 yesterday to fill up my honda accord - 12.5 gallons,

with the cheapest fuel they had, I would say that $1000 would get made up quickly. I fill my tank once a week as I have 30mile each way drive to work. I won't park at a park n ride because my car was stolen in one 2 years ago.

I'm afraid to know how much it costs suv owners to go the same milage I do. I get 30+ miles per gallon.

[One_Life_To_Give]

36. At nat avg 15,000 miles per year

The SUV burns 1000 gallons per year or $3000 of fuel which is roughly $60 per week.
Using a 30mpg car for 67% of the total miles would result in a fuel savings of $1000 per year. So they could pay the insurance but what is the cost of owning the vehicle. Low cost would be $500 per year for the second vehicle. Maintenance another couple hundred. At $3 a gallon we are just approaching the break even point. At $4 or $5 a gallon it will make economic sense to have the extra vehicle.

[okieinpain]

26. shit I have a v6 ram 1500. 18 in the city, and I wish I had a 4 cyl.

[Submariner]

35. I need my Tahoe

It has the 4WD and power that I NEED to drive out on the Cape Cod and Martha's Vineyard beaches for surf fishing. The 2 dr Tahoe also has the room to hold all my fishing, diving, and beach gear. It is not a commuter vehicle, I take the T, but it is my getaway machine. An argument can be made to get a smaller 4WD and tough out the cramped feeling, however I don't have money for car payments and the Chevy is paid for.

[alarimer]

41. Very few, I expect

I see a lot of Tahoes and the like with ONE person in them, somebody just driving to work like everyone else. You certainly don't need one just to commute. If I had a long commute, I woule choose the most fuel efficient vehicle I could afford, something along the lines of a Honda Civic or something, since I can't afford a hybrid. My Nissan Frontier gets 22 mpg in town. I wish it got better (actually I sometimes wish I had bought another car instead of this truck) but I am in no position to trade it in at the moment.

[sendero]

6. There is no Japanese or Korean..

... competition in this class of vehicle.

[cmutt]

38. Really?

Ever seen a Nissan Titan or Armada? A Toyota Tundra or Sequioa? Those aren't small vehicles..

[Jamison]

11. Pure knuckle-dragger mentality here...

"if it doesn't have a V8 I'm not going to own it."

Dodge makes an engine that has as much hp and more torque than any GM gasoline engine (325hp/610lb tq). This engine can also run biodiesel. It's the Cummins turbo diesel, but *GASP* it's only a puny inline-6 cylinder!!!:sarcasm:

[Zynx]

12. Who exactly do Americans think they're defying by buying SUVs?

The Middle East? King Abdullah says "Buy more, please."
The Oil Companies? Exxon Mobil says, "Buy more, please."
Environmentalists? Some hippie says, "Bankrupt yourself you redneck asshole."

[saigon68]

13. LOL

Good One

[One_Life_To_Give]

23. Men

Defying men

"You can't rape me cause I am in a Hummer. "

[agincourt]

14. This shows more than anything how obscene,

the difference in wealth is between americans. A nation of obscenely rotten rich who can afford 25.00 per gallon petrol and a nation of poor that cannot afford even economical cars. This country needs a revolution so bad to overthrow the ruling class it's like a punch in the gut when you realize how bad it is. I wish something would happen besides another fucking rigged election that gets explained away by poor democratic challangers and swift-boat ads.

[Julius Civitatus]

40. As long as people care more about Brangelina and TomKat

nothing will happen in this country. People are dumbed down to amazing levels. Modern America gives the word "alienation" a run for its money.

[daleo]

24. Clearly the solution is even bigger SUVs and pickups

At least that would be the usual response.

[Blue_Tires]

33. it's the rebates

"Last month, large SUVs carried average incentives of $4,925 per vehicle, compared with $948, on average, for compact cars, according to Edmunds.com."

[cmutt]

37. naa

GM's newest SUV's are driving the sales by themselves. GM hasn't changed those things in a long time. It was sorely overdue. You always see a rush of sales when a new vehicle debuts. GM's got *no* rebates on the new suv's. The number you quote is skewed - because rebates for suv's are large across the board and GM's old SUV's are still on dealer lots & they need to incent-the-heck out of them to get rid of the last of them. Tundra sales are facing the same situation. Tundra sales are up, in large part, because Toyota is incenting the heck out of them to try and move them before the next one comes out. BTW, the next Tundra is a behemouth - it's bigger than anything GM/Ford/DCX/Nissan's got - and it's powered by a 300+ hp monster.. because, you know, we don't have any gas problems/fuel economy/national defense issues at all & the market really needs another overpowered, oversided truck.