Is the US ditching the SUV?

Automotive trends traditionally don't change nearly as fast as fashions in clothing or music.

But as sales of new vehicles in April dropped to their lowest level since the 1992, raw numbers also indicated US consumers were - at warp speed - foregoing beloved trucks and sport utility vehicles (SUVs) for mid-sized and compact cars and hybrids with better fuel economy.

"Smaller vehicles are going over big," said Toyota Motor Sales president Jim Lentz. "With oil prices at record levels, compact cars and hybrids continue to lead the way," Lentz said.

Japanese brands, such as Honda, Nissan Subaru and Suzuki, also reported sales increases last month as consumers opted for small cars.

Overall, Autodata reported that despite a weak economy, sales of passenger cars increased by five percent last month while sales of trucks and sport utility vehicles plunged by 17.4 percent.

So far this year, sales of passenger cars, primarily compact and mid-sized models are off only one percent on weaker industry sales, while sales of light-duty truck and SUVs have dropped 13.5 percent in the face of rising fuel prices.

Carmakers also report that more consumers are also opting for smaller, more fuel-efficient four-cylinder engines when purchasing popular new cars such as the Chevrolet Malibu, GM officials said.

"Consumer preference is shifting and we're shifting with it," said Mark LaNeve, vice-president, GM North America Vehicle Sales, Service and Marketing. "Throughout the industry, truck sales have been soft," noted LaNeve after GM reported a $3.3-billion first-quarter loss as its truck sales plunged.

GM announced deep cuts in truck production through the summer even though inventories have already been thinned by a two-month strike at a key supplier.

Jim Farley, Ford Motor Co vice-president of marketing and sales, also said that sales of vehicles such as the Ford Focus and Mercury Milan were helping the company transform its sales profile away from truck and sport utility vehicles. Overall Ford's sales were down 9.8 percent, according to Autodata. However, 63 percent of the vehicles Ford sold in April were cars or car-like crossover vehicles while less than 38 percent were trucks or SUVs, the smallest percentage in more than a decade, Farley said. In fact, Focus sales were the best in any April since 2000.

Sales of the hybrid version of the Ford Escape and Mercury Mariner have also increased, leaving the vehicles in relatively short supply, Farley said.

AFP

(China Daily 05/06/2008 page16)