U.S. consumers turn from SUVs, report says - DodgeIntrepid.Net Forums - Dodge Intrepid, Concorde, 300m and Eagle Vision chat
LinkBack Thread Tools Rate Thread Display Modes
post #1 of 1 (permalink) Old 08-12-2004, 05:39 PM Thread Starter
Intrepid Pro
Join Date: Jun 2001
Location: Catonsville, Md.
Posts: 3,652
Feedback: 0 / 0%
U.S. consumers turn from SUVs, report says

U.S. consumers turn from SUVs, report says
Reuters / August 12, 2004
DETROIT -- U.S. consumers have been shying away from fuel-thirsty SUVs, an industry research firm said Thursday, in a report on what may become a worrisome trend for the Big 3.

Power Information Network, an affiliate of J.D. Power and Associates, cited rising gasoline prices and a renewed emphasis on cars by some manufacturers as factors contributing to recent evidence of flagging SUV demand.

The Power Information Network report said that unsold SUVS had sat on dealership lots for an average of 73 days as of last month, about 22 percent longer than the 60-day average in July last year.

The increase in the "days to turn" rate was even higher for luxury SUVs, jumping 47 percent, or more than double the industrywide rate for cars and trucks overall, the report said.

Further pointing to weakness in the SUV sector, the report said that average SUV transaction prices were down 2 percent, or $620, in July from the year-earlier period. Luxury SUV prices were nearly 5 percent lower, meanwhile.

Many Americans have long considered SUVs the kings of the road, making them their preferred choice of vehicle despite generally poor mileage and a high rollover risk compared with cars.

The Power Information Network suggested that huge discounts were further evidence of weakening SUV demand, however.

Consumer incentives on SUVs averaged $3,440 in July, the report said, up nearly 12 percent from June and nearly double the overall industry increase for new cars and trucks.

Tom Libby, the Power Information Network's senior director of industry analysis, told Reuters that car-based SUVs or crossovers were outperforming traditional body-on-frame SUVS. But both types of vehicles were included in Thursday's report.

General Motors, Ford Motor Co. and the Chrysler group all make a huge share of their automotive profits from sales of pickups and truck-based SUVs.

But Libby said it was too soon to say the automakers are in big trouble because America's long love affair with SUVs is on the rocks.

"It's definitely too soon to say that," Libby said.

"We would caution that, really, it's important to wait a little while before drawing any giant conclusions. You have to wait and see if indeed there is a major softening or if this is just sort of a blip."
moparman is offline  
Sponsored Links

Quick Reply

Register Now

In order to be able to post messages on the DodgeIntrepid.Net Forums - Dodge Intrepid, Concorde, 300m and Eagle Vision chat forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

Member names may only be composed of alpha-numeric characters. (A-Z and 0-9)

!!ATTENTION ADVERTISERS!! If you intend on advertising anything on this forum, whatsoever, you are required to first contact us here . Additionaly, we do NOT allow BUSINESS NAMES unless you are an Authorized Vendor. If you own a business, and want to do sales on this site via posting or private message, you will need to follow the rules. Shops, Stores, Distributors, Group Buys without being authorized will see your account terminated.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes Rate This Thread
Linear Mode Linear Mode
Rate This Thread:

Similar Threads
Thread Thread Starter Forum Replies Last Post
Harbour Report On Plant Efficiency moparman General Discussion, other Mopar Vehicles 0 06-12-2004 03:03 PM
Gas prices won't slow sales for SUVs moparman General Discussion, other Mopar Vehicles 8 05-28-2004 11:55 PM
NOW Interview with Jon Stewart 00ChryslerIntrepid Whatever 60 01-18-2004 03:14 PM
Health Report: Big 3 Warlord187 General Discussion, other Mopar Vehicles 7 08-06-2003 09:11 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome