Death of the SUV?
Thursday, June 5th, 2008With some of the news coming out of the automotive world this week, it’s hard not to feel as if we Americans are, as a society, poised on the brink of a significant change in how we approach personal transportation. I’ve never been a fan of the SUV, although I have driven picks-up (two Fords) in my lifetime and loved them both.
In one week, however, GM has announced plans to shut down four plants that make trucks and SUVs because the company sees no way to get back on a profitable footing with those vehicles. Their new concentration will be on fuel efficient models and on the Chevrolet Volt gas/electric hybrid scheduled to reach showrooms in 2010. With a potential range of 40 miles on electricity alone, the Volt could well revolutionize daily driving in urban areas.
At the same time, after a run begining in October 1991, the Ford F-150 fell from the top of the bestseller heap in May, losing ground to four sedans — the Corolla, Camry, Civic, and Accord. While Ford hasn’t come right out and made any statements as drastic as GM’s, the VP for marketing and communications did say the decreased sales figures were a “significant development.” No kidding, Jim.
The rapid change is boiling down to what the consumer can and cannot afford to feed — the kids or the big SUV parked in the driveway. I read a story on CNN last week about a man who is commuting 42 miles to work on his bike. He decided to give it a try for a month to see how it would work out. Of course, he has to leave the house at 5 in the morning and it takes him three hours (and he lives in Bakersfield, California), but he also saved $500. That’s not chump change and to families already struggling, cutting down on driving, changing to a more fuel efficient vehicle, and looking at alternate forms of transportation has shifted from PC dinner table chatter to real world necessity.
With the national gasoline average hovering at $4 and prognosticators pointing out that one severe hurricane in a season already predicted to be intense could drive it to $6, the best advice at this time would seem to be wait and see what happens. My own vehicle will be paid off in February and the last thing I want is to face more car payments. Fortunately, I don’t have to do a lot of driving, but I’m already looking at biking to handle some of my errands and $6 gas would definitely make me take more drastic measures. Yes, there will be a lot of incentive deals being offered in this climate, but I’d hold off. The dominant consideration in car buying right now is not whether you can afford to purchase it, but whether or not you can afford to drive it.
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