Have high oil prices of late really caused Americans to buy fewer SUVs, or is this just a myth?
Roddy Scheer and Doug Moss November 7, 2005
—Shane Wiener, Royal Oak, Michigan
It is indeed true that sales of sport utility vehicles (SUVs)—not to mention pickup trucks and vans—have plummeted in recent months in the U.S. Undoubtedly rising oil prices are playing a big role, and sales of the Ford Explorer, Lincoln Navigator, GMC Yukon and Hummer H2 are all down 50 percent or more.
But U.S. automakers are quick to point out that sales have been dropping across all product lines and that attractive financing programs last year translated into record sales numbers. But General Motors (GM), the world's largest automaker, did report that overall sales in the U.S. sank in October 2005 by 22.7 percent compared to the previous year, while sales of SUVs, pickups and vans shrank by a whopping 30.3 percent. Meanwhile, Ford Motor Company experienced similar drops.
"We realize that gas prices are important to consumers and we're certainly not denying that there's an impact," says Paul Ballew of GM, who thinks the change in consumer preference is not as significant as it was following the world's first round of oil shocks three decades ago. "We are seeing more interest in consumers understanding fuel economy of vehicles. But there's not the shift we saw in the 70's and 80″s."
Against this backdrop of gloom for American automakers, Japanese competitors specializing in smaller cars have reported banner sales numbers in recent months. Toyota, maker of the industry-leading gas-electric hybrid Prius, beat its own October U.S. sales numbers from a year earlier by 5.2 percent, while Honda, which offers the world's most fuel-efficient traditional cars as well as hybrids, saw its U.S. sales rise four percent in October. Toyota's SUV and pickup sales slackened by four percent, while Honda bucked the downward trend by staying even with last year with its light truck line.
One sign of flagging consumer demand for gas-hogging large SUVs is the recent development of so-called crossovers, which are SUV-type vehicles built on smaller, more fuel efficient frames. These vehicles, such as the Chrysler Pacifica and the Toyota Highlander, appeal to consumers looking for better gas mileage but unwilling to give up the SUV's size. Today almost half of all light trucks sold are considered crossovers. Just two years ago, such vehicles accounted for only about 16 percent of the country's light truck fleet.
Another new option for light truck lovers looking to save gas and money is the hybrid SUV, which, like a hybrid car, utilizes both gasoline and electric engines to maximize fuel efficiency. Ford and Toyota lead the pack in hybrid SUV sales, but new models on the way from GM promise to provide consumers with even more ways to live large with less guilt.
CONTACTS: Toyota Highlander, www.toyota.com/highlander; Highlander Hybrid SUV, www.toyota.com/vehicles/minisite/hhybrid/index.html; Chrysler Pacifica, www.chrysler.com/pacifica; Ford Hybrid SUV, www.fordvehicles.com/escapehybrid/home; U.S. Department of Energy's fueleconomy.gov, www.fueleconomy.gov.
The Allure of Exotics A review of Forbidden Creatures: Inside the World of Animal Smuggling and Exotic Pets by Peter Laufer
Ethan Goffman's Words for Things Left Unsaid: Looking Backward, Looking Ahead
A Guide to Greener Cleaning
Beetlemania, and Other Kid's Stuff A review of The Mountain Pine Beetle: Tiny but Mighty by Kay Turnbaugh, Sheila Says We're Weird by Ruth Ann Smalley and Riparia's River by Olga Pastuchiv
The Efficiency Nightmare A Review of The Efficiency Trap: Finding a Better Way to Achieve a Sustainable Energy Future by Steve Hallett
Protecting Pollinators: Saving Them Might Save Ourselves