In a year of record gas prices and a slow economy, General Motors says that Americans are increasingly going into car dealerships looking to buy large trucks and SUVs.
Yes, you read that right.
Bloomberg reports, "General Motors Corp.'s U.S. dealers are reporting that a decline in pickup-truck sales may be 'bottoming out' and that some demand is returning for large sport-utility vehicles." While demand for the vehicles is not close to matching demand for fuel-efficient small cars, GM Vice Chairman Bob Lutz told Bloomberg that dealers have begun to report "some resurgence in demand for full-size SUVs and pickups." Despite a heavy media focus on hybrids and small cars, "Pickups, SUVs and vans account for 56 percent of GM's U.S. sales this year."
Jalopnik is skeptical of the claim, however, citing GM's late August "employee pricing" sale for the uptick in truck and SUV sales. "Of course sales are seeing an uptick; that's what incentives do," they write. "We're not quite ready to say the truck and SUV sales slide has bottomed out.
There is some indication, however, that a bump in SUV and truck sales may have helped to end an auto sales slide that has lasted for months. The AP reports, "Analysts say August's numbers probably won't be as bad as July's record lows, mainly because of General Motors Corp's late-month employee pricing offer." Declining gas prices are also playing a role. Jesse Toprak of Edmunds.com told the AP that "while July's record high gas prices may have permanently driven some consumers away from trucks and SUVs, the recent drop in prices may be enough to lure others back to dealer lots."
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