atlaw4u
06-02-2008, 05:06 PM
"You can put a fork in" SUV sales, said Erich Merkle. (http://online.wsj.com/article/SB121200752206127227.html?mod=AutosChannelMain_RelatedStories)
http://www.cleanmpg.com/photos/data/501/07_Ford_Expedition.jpgTerry Kosdrosky - WSJ - May 29, 2008
DETROIT -- The traditional truck-based sport-utility vehicle, the behemoth of American roads that helped fuel profits of automotive companies, is dying quickly.
Rising fuel prices, aging baby boomers and the advent of so-called crossover utility vehicles -- wagons that offer size and space but are based on car platforms -- are pushing aside the SUVs and the profits they bring.
Ford Motor Co. said last week it would further chop production of pickup trucks and SUVs this year and added it wouldn't meet its goal of returning to profitability in 2009. The company pointed to high fuel prices in recent weeks accelerating the shift away from pickups and SUVs toward cars and crossovers.
While Ford has strong-selling cars and crossovers, the revenue and profit margins for those vehicles aren't as high as they are for SUVs or pickups. General Motors Corp. and Chrysler LLC face a similar dilemma. Foreign auto makers have also recorded steep declines in sales of full-size SUVs in recent months, but the U.S. companies suffer the effects of the consumer shift more deeply, as they are more dependent on those vehicles for their profit margins… http://online.wsj.com/article/SB121200752206127227.html?mod=AutosChannelMain_RelatedStories
http://www.cleanmpg.com/photos/data/501/07_Ford_Expedition.jpgTerry Kosdrosky - WSJ - May 29, 2008
DETROIT -- The traditional truck-based sport-utility vehicle, the behemoth of American roads that helped fuel profits of automotive companies, is dying quickly.
Rising fuel prices, aging baby boomers and the advent of so-called crossover utility vehicles -- wagons that offer size and space but are based on car platforms -- are pushing aside the SUVs and the profits they bring.
Ford Motor Co. said last week it would further chop production of pickup trucks and SUVs this year and added it wouldn't meet its goal of returning to profitability in 2009. The company pointed to high fuel prices in recent weeks accelerating the shift away from pickups and SUVs toward cars and crossovers.
While Ford has strong-selling cars and crossovers, the revenue and profit margins for those vehicles aren't as high as they are for SUVs or pickups. General Motors Corp. and Chrysler LLC face a similar dilemma. Foreign auto makers have also recorded steep declines in sales of full-size SUVs in recent months, but the U.S. companies suffer the effects of the consumer shift more deeply, as they are more dependent on those vehicles for their profit margins… http://online.wsj.com/article/SB121200752206127227.html?mod=AutosChannelMain_RelatedStories
