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….The SUV is Dying

June 4th, 2008 Posted in Business

Suv
1. With the price of gasoline in the U.S climbing to about $4/gallon, consumers have finally realized that the concept of owning a gas-guzzling truck doesn’t work financially. That’s a lot bigger factor for many people compared with the environmental impact of SUVs given their crappy miles-per-gallon performance.
According to the Wall St. Journal, SUV sales are tumbling. Ford sold 137,817 Explorers last year, compared with 445,000 in 2000.

2. Most people think SUVs offer more space and comfort. While you are riding higher (which makes people feel more comfortable), the reality is most SUVs can only fit five passengers, along with some luggage in the back. Ironically, this is about the same capacity as sedans such as the Honda Accord.

3. Japanese and South Korean auto makers are taking market share from U.S. rivals by selling a variety of well-designed, high-quality products. Unlike their U.S. counterparts, Japanese and South Korean auto makers aren’t heavily relying sales of SUVs to boost profits.

4. The vast majority of people don’t need an SUV. They never drive off-road other than maneuvering their way through large mall parking lots.

More: The Wall St. Journal had a story last week looking at the demise of the SUV that included this quote:

“You can put a fork in” SUV sales, said Erich Merkle, vice president of forecasting for IRN Inc., a Grand Rapids., Mich., consulting firm.

The Toronto Star - clearly a reader of 4RW - has a cover story (June 8) with the headline: “The Rise and Fall of the SUV”.

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