Desire for Big Cars Up Again
No big surprise here, but USA today is reporting that lower gas prices are sending what car buyers that are left back to the types of large vehicles that got America into lots of trouble in the first place. It seems that the folks at GM, Ford, and Chrysler (among others) are having a hard time pinning down exactly what Americans want, and when they want…whatever it is that they want:
“The change shows how fuel prices rule the car business. In May, 56% of the vehicles sold were cars, not trucks. By last month, the share of cars had fallen to 47%, according to Autodata. Gas prices averaged $1.845 a gallon by Sunday, less than half their summer peak of $4.114. The market is becoming “almost schizophrenic” for big or small car demand, says Tom Libby, analyst for Power Information Network. He cautions against writing off small vehicles.
Longer term, “The price of gas is going to go up,” Ford Vice President Mark Fields says. Figuring out what buyers want amid wild gas price swings “is like trying to time the stock market.”
What does this say about us? We just took our hand out of the fire and now we must have forgotten what it feels like to burn since we are more or less deciding to stick our hand right back into the flames. I think it is really a sign of what this country has become when we are so self deceived that we can’t imagine gas shooting back up in price. Well, I hope that gas doesn’t rise in price and the new SUV buyers will be happy…but I’m not holding my breath.
How do you think the new hybrid SUV’s are affecting the demand for bigger vehicles? I currently do not own a vehicle since I live in Chicago and utilize public transportation but when I did have a car it was an Explorer and I wouldn’t have it any other way. I loved my SUV and felt cars were too small to carry all the people and stuff I frequently hauled around. If I were to get a car, I think it would be the hybrid Escalade, not because of efficiency or even going green (even though I feel protecting the environment is very important) but because filling up on gas less in a large vehicle that can hold all the people and items I want will save me time that I value extremely high. Just my thoughts.
I doubt they will make a big dent for people just looking for a bigger car. It would be great to have a big car that is good on gas that doesn’t cost an arm and a leg…but these new hybrids aren’t going to come cheap.