Large SUVs may hurt GM and Ford
Used SUV prices are plummiting
Anyone with any sense knows that the automotive industry is not in the best of shape right now. And everyday it seems as things are getting worse. Yesterday was actually the first good news about the auto industry in a while. However, today we’re back to the problem with American auto makers.
Most of Ford and GM’s revenues come from large SUV sales, and with high gas prices, less and less people are buying used SUVs. This, in the long run will be detrimental to ford and GM, since they have such a high volume of large SUVs. The price for large SUVs has been declining extremely fast over the past few months because of high volume and high gas prices.
Ford Sales analyst said that he expects to see a double-digit percentage decline in 2006 for large SUV sales. So, what does this mean for the consumer? Well, it means if you’ve ever wanted a large SUV now is probably the time to buy one, or you can wait a few more months to see what will happens with the prices. However, I think by consumers not buying large SUVs we’re showing auto makers we want more fuel efficient cars.
Honestly, Ford and GM should’ve seen this coming 10 years ago. It seems that foreign automakers saw it, so why were American automakers oblivious to this trend? Well, I’m not too sure, but I hope that they get the picture soon.
See Also
- Autowarranties.com
Extended Warranties