« Blogger Mood Disorder | Main | Vote early, vote often »

SUV sales surge

I guess I'm not all that surprised by a surge in SUV sales now that gas prices have dropped. Supply and demand, that's how it works—or how it's supposed to work—right? Still, I didn't think we'd put a hand back on the stove so soon after getting burned.

The details:

Trucks and sport utility vehicles will outsell cars for the first time since February, according to a December report by Edmunds.com, which tracks industry statistics.

"Despite all the public discussion of fuel efficiency, SUVs and trucks are the industry's biggest sellers right now as a remarkable number of buyers seem to be compelled by three factors: great deals, low gas prices and winter weather," said Michelle Krebs of AutoObserver.com, a division of Edmunds.com, in a prepared statement.

Yes, collective amnesia is partly to blame—gas mileage "hasn't been a topic of conversation lately," one dealer says—but the big draw for SUVs has been discounts from dealers looking to move large vehicles off their lots. Perhaps this is just a temporary bounce back before the market stabilizes in favor of more fuel efficient vehicles. Still, do the people buying gas guzzlers now really think prices won't go back up? Are we destined to repeat this cycle forever?

Andrew Sullivan says it's time for a gas tax. I'm not looking forward to paying more at the pump, but if this trend in vehicle sales continues, that will probably happen anyway as the economy starts to recover. Why not increase taxes on gasoline and lower them somewhere else or invest the revenue in alternative energy research?

UPDATE: Before I offend any other SUV owners, I want to make it clear that this post is about the larger trend, not individual reasons for owning an SUV. There are many valid reasons (e.g., snow, large family, business, hauling, etc.) for owning a large vehicle that consumes a lot of gasoline, and I hold no personal grudges against SUV owners. I love SUV owners. Some of my best friends are SUV owners.

I'm not arguing against the utility of large vehicles or anyone's right to purchase the vehicle they prefer. All I'm saying is that 1) a new wave of SUV sales like we saw in the 1990s would be damaging to our environment/economy/foreign policy and our energy policy should be steering us toward greater fuel efficiency, and 2) it has been six months since gas was over $4 per gallon, and anyone buying a car thinking gas will remain at current prices is being very short-sighted. The deals on cars in many cases are so good that individual buyers may save more than they'll end up spending on gas, which is great for them. But again, I'm not talking about individuals, I'm talking about the larger trend. Manufacturers are going to respond to demand signals, and I don't think it's a good idea to restart the cycle that led most of Detroit's automakers to ignore fuel efficiency and fall behind when gas prices skyrocketed.

I guess the larger question is: Are low gas prices ultimately a good thing?

Like this post? Get updates via RSS or email.

|

TrackBack

TrackBack URL for this entry:
http://www.ablogistan.com/mt/mt-tb.cgi/545.

Comments (6)

Some businesses and individuals really do need people-haulers and the ability to go off-road.

Though SUVs do get poorer gas mileage than economy cars, if you put 7+ people in one SUV and measure the cost per person, you're probably better off than seven economy cars with one person in each of them.

So although it doesn't make sense for everyone to have an SUV, to assume that no one needs one is just short-sighted.

Posted by Anonymous | January 6, 2009 12:52 PM

I believe Andrew Sullivan is right. Gas prices should be kept high for the following benefits:

1) Insurance companies across the board reported fewer accidents and fewer deaths in March, when gas prices were peaking. This is because fewer people drove, instead opting for public transportation or other means of travel (carpooling, bicycling, etc)
2) Because of the drop in accidents, injuries, and death, insurance prices across the board began a downward trend (which has since stopped since people are back on the road)
3) A personal gain for me, roads are noticeably less congested; at least here in DC...I can't attest to anywhere else.
4) less money leaves America as people stop buying oil.
5) The unwillingness to buy gas-guzzling vehicles drives companies to create more fuel efficient technology
6) Dispite what anyone says, the gas tax does NOT disproportionately hurt the poor. The "poor" generally buy cheaper cars which have fewer cylinders, weigh less, and don't require premium grade gasoline. Generally speaking, the more expensive a car, the more it costs to keep the car on the road.
7) Pollution goes way down....I don't really care about that one, but others do, so that's a bonus to them
8) Finally, and my most favorite, when gas prices are high, all of those egomaniacle Hummer owners that made fun of the left for hugging trees get laughed at every time they're seen on the road

Posted by jm | January 6, 2009 12:53 PM

I just bought a 2001 Jeep Grand Cherokee with a V8 in it. Why you ask? One word - SNOW. Lots of people live well south of us here in Washington where they are always sunny and warm and the only place they ever see snow is on television. These people have absolutely no idea why on earth anyone would have the audacity to purchase something that can actually get you from point A to point B when my Scion tC literally pushes snow by the front bumper and is entirely WORTHLESS in the snow and on ice.

Until car manufacturers realize that their fuel efficiency designs also require that they give us vehicles that can handle weather other than what Southern California always has, there will be people like me who don't care about the price of gas. I'll pay five bucks a gallon. I'm not concerned. What I am concerned about are the puny little cars that get great gas mileage that remain home because they can't even make it out of the driveway. Those so-called "efficient" cars are pathetic in bad weather conditions. But at least I'm nice enough to stop and pull people out of the ditch. I pulled four cars out last night alone on my way home from work.

As for public transportation, it ought to be fairly easy to get on one of the many buses as you can easily find the articulating ones jack-knifed with half of it sticking off the road into a ditch, or you can find the whole thing in a ditch if they are the normal buses. Good luck getting anywhere on them though, provided they haven't cancelled all bus service on that route anyway.

I think the people who write lists like the one above ought to be required to live in a place where they can't see pavement and they have to shovel a foot of snow in the morning just to get out the front door. Apparently, you folks in warm climates don't care at all about those of us dealing with snow.

Posted by bpg131313 | January 6, 2009 2:07 PM

Hey JM

I live at the north in Europe ( ~ the latitude of your Alaska ) and we see snow all the time. I use a Citroen diesel that gets 70+ miles to the gallon and drives fine on the snow. Perhaps the trouble lies with the designers of your automobiles using 'a sledgehammer to crack a nut'

Posted by hill man | January 6, 2009 4:36 PM

hill man,

Just curios, what Citroen do you have? I don't even see those cars on the roads over here. When I was stationed in Frankfurt I had a buddy that had one and it was fantastic, though his had electrical problems.

You're in the northern latitudes? London is freezing out rather bad right now. I hope all is well with you wherever you are. Stay warm.

Posted by bpg131313 | January 6, 2009 10:30 PM

re: snow. Strangely, they have that in Canada but I don't see so many SUVs there as here. I lived for years in Canada, people actually seemed to have smaller cars there than here.

"If you put 7+ people in one SUV and measure the cost per person" - how often do you see 7+ people in one SUV?

"As for public transportation, [it ends up in the ditch]." Other countries with lots of snow make it work, why can't you?


I talked to a woman who parks her SUV near me - huge thing - and asked her why. "We need it for the family." (But you have just two kids.) "Well, sometimes we want to take his mother along." (How often?) "On holidays." (Doesn't she have her own car?) "Yes." (She was getting irritable so I left off there.)

Point is that Americans want to have big cars so they can feel powerful and important. They believe SUVs are safer when in fact they have a better chance of getting into an accident with them (though once they're in the accident they are sometimes somewhat less damaged so it's the same death rate - except for the other guy...) They think gas will last forever.

You just won't learn.

Posted by Tom Human | January 6, 2009 10:40 PM

Post a comment