Saturday, March 12, 2005

Better Dump The Escalade

That is if you can get anything for it. Reuters (03.12.05):
"Rising U.S. gasoline prices are hurting sales of large sport utility vehicles and pickup trucks, according to some industry analysts, a trend that could stall a major engine of profits for Detroit's automakers. The gas-thirsty, full-sized SUV segment lost 1.2 percentage points of U.S. market share over the last two months and large pickups were down about 2 percentage points, according to Edmunds.com, which tracks the industry. Fuel-efficient compact cars, on the other hand, gained 2.2 percentage points of market share in the same period. Gas Prices Seen Hurting SUV, Truck Sales
"Large SUVs and full-sized pickup trucks account for close to 80 percent of North American automotive profits for Ford Motor Co. and General Motors Corp., Deutsche Bank analyst Rod Lache said in a recent research note." That would be a lot of profit. Understatement of the week: "'The concern, of course, is that the slowdown in these categories may represent the beginnings of a structural change, perhaps sparked by consumers' concerns about higher oil or gasoline prices,' Lache said." Perhaps?

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