Mid-sized SUV Sales Continue to Weaken

[Atomic]

gm and fmc face worsening news! will they ever bounce back  :ph34r: ?!

Mid-sized SUV Sales Continue to Weaken

From: Reuters, June 21, 2006

DETROIT -- Sales of mid-sized SUVs are weakening as a pullback in incentives does little to offset rising gas prices, according to a study by J.D. Power and Associates.

The segment had the second highest days-to-turn rate in the 26 segments tracked by J.D. Power and Associates, the study showed.

Vehicles in the segment that were sold in May sat on dealership lots an average of 73 days, the report said.

Full-sized vans sold in May were on dealer lots an average of 80 days before they were sold, while vehicles in the compact basic car segment, with one of the quickest average days-to-turn rates in May, spent just 35 days on the lot.

"We're also seeing declining segment loyalty, or fewer owners returning to the segment when they purchase or lease their next vehicle," Tom Libby, senior director of industry analysis at Power Information Network, said.

The study said 24.5 percent of mid-sized SUV owners traded vehicles in the same segment in May, down from 29.2 percent in January.

U.S. automakers such as General Motors and Ford Motor Co. have been hurt by declines in the segment.

"Concern about the mid-sized utility segment has been rising for some time, due in no small measure to skyrocketing gasoline prices," Bob Schnorbus, chief economist of global forecasting at J.D. Power and Associates. "However, the segment also has been buffeted by a pull-back in incentives and a flood of new models in other segments."


your thoughts? opinions? advice to gm and fmc?

should they call it quits   ?!

[Colonel Cadillac]

Damn, that sucks I guess...time to invest in small cars!

[Raza]

They really need to put more time into quality small cars.

[JYODER240]

I say they should ignore the problem, it will go away  

[Atomic]

They really need to put more time into quality small cars.

great point! for those who prefer mini cars, we have the new honda fit! the ford fusion, and the upcoming chrysler sebring [SEE THE PIX I POSTED] and dodge avenger sedans are the greatest attempts thus far at american automakers taking on the highly popular honda accord and the best selling toyota camry!  gm is making great strides, too!