Tuesday, March 22, 2005

WSJ.com: Rising Gasoline Prices Threaten Viability of Biggest SUVs - Reminds me of the Dave Barry Classic

I read this WSJ article: Rising Gasoline Prices Threaten Viability of Biggest SUVs:


Rising prices of gasoline across the U.S. are raising vital questions in Detroit: Will prices keep going up? And if they do, will that prompt Americans to accelerate their shift away from the auto industry's cash cows, big sport-utility vehicles?

The stakes are huge. For more than a decade, the Big Three Detroit auto makers have derived most of their overall profits from sales of gas-guzzling SUVs and pickup trucks. Indeed, General Motors Corp.'s current predicament -- it was forced to slash its earnings outlook last week and its debt now trades like junk bonds -- was provoked in part by sliding sales of SUVs such as the Chevy Suburban and Tahoe.
....
Cris Manning spent $44.84 one night last week to put about 23 gallons of gas into his SUV, a white 2002 GMC Yukon. He figures he drives 50 to 100 miles each day, shuttling around the Dallas region as corporate education manager for a university. His Yukon gets about 15 miles a gallon. He has no plans to change his travel habits -- or his vehicle -- regardless of how expensive gasoline gets. "I just like having a big SUV," he said.

Gasoline represents only about 15% of the cost of owning and operating an average new passenger car in the U.S., according to the AAA, a federation of affiliated automobile clubs in the U.S. But the recent rise in gasoline prices still can pinch. If Mr. Manning drives his Yukon 75 miles each weekday, and about 50 miles each weekend, the rise in gas prices over the past year will cost him about an extra $540 annually.
...
GM begs to differ. In the past five years, it surged ahead of Ford in total sales of large, truck-based SUVs. GM executives attribute the recent slide in large-SUV demand not to any widespread worry about pump prices, but rather to the fact that GM's segment-leading SUV models, such as the Chevy Suburban and Tahoe, are old. The large-SUV market is "stable, not shrinking," GM Chairman and Chief Executive Rick Wagoner said this year.


and guess what I have on my mind - of course its the classic Dave Barry article on 'More Souped up SUVs' (a hilarious, must read!):


I don't know what the new Ford will be called. Probably something like the "Ford Untamed Wilderness Adventure." In the TV commercials, it will be shown splashing through rivers, charging up rocky mountainsides, swinging on vines, diving off cliffs, racing through the surf and fighting giant sharks hundreds of feet beneath the ocean surface - all the daredevil things that cars do in Sport Utility Vehicle Commercial World, where nobody ever drives on an actual road...

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