The Biggest Losers @ $4.00

[Ming]

U.S.News & World Report
Cars Hurt Most by $4 Gas
By Rick Newman

Call it the revenge of the little guys. With gas prices officially cresting $4--and running higher in many parts of the country--American drivers are finally downsizing in big numbers. Overall auto sales are down about 8 percent so far this year--but sales of large cars and trucks have plunged 23 percent, according to J.D. Power & Associates. There's no mystery behind the shift: Buyers clearly believe high gas prices are here to stay, and are desperate to cut their gas bills.

Among the cars piling up on dealer lots, here are some of the biggest losers:


Hummer. Sierra Clubers can go ahead and cheer: Hummer sales are down by 36 percent so far this year, the biggest drop among a single brand. Sales of the smallest Hummer--the H3, which averages about 15 mpg--have fallen even more than the brawnier H2, which gets a meager 10 mpg or so. Consider some painful Hummer math: With gas at $4, it costs about $120 to fill the tank of an H2, and then you can only go about 300 miles before forking over another $120. No wonder General Motors is considering offloading the whole division.

Nissan Titan. This pickup has never caught on like its American counterparts, and sales are off 45 percent for the year. But even the venerable American brands are hurting. Dodge Ram sales are off 27 percent; Chevy Silverado sales, 26 percent. Sales of the Ford F series, down a mere 19 percent, look healthy by comparison.

Jeep Commander. That thing got a Hemi? Better hope not. The big V-8 engine was a hit back when gas was $1.50, but sales of the Commander--city mileage with the optional Hemi: 13 mpg--have plummeted 48 percent so far this year. Other SUVs are in bad shape, too. Sales of virtually every midsize SUV have fallen by double digits, and there's now such a glut that some dealers won't even accept an SUV as a trade-in.

Chrysler. That deal to lock in $2.99 gas was supposed to move some metal in a tough market, yet Chrysler sales are down 19 percent for the year--with a 25 percent drop in May, when the $2.99 deal was supposed to be luring buyers. The hulking Chrysler 300, a huge hit that supposedly redefined American muscle when it debuted in 2004, now looks as passé as tail fins: Sales are down 31 percent.

Saturn. General Motors has revitalized this division's entire lineup, with enticing new right-size vehicles like the Outlook and Vue crossovers and the Aura sedan. But buyers aren't, well, buying it. Sales are down 20 percent.
Toyota Avalon. Yes, even Toyota is struggling in segments, and while the Avalon sedan is more spacious than the popular Camry, there's only one engine choice, a six-cylinder. That's one reason sales are off 33 percent, a lot more than slightly smaller sedans that come with a four-cylinder option. Sales of every other large four-door are down, too, as the family sedan shrinks. It was nice while it lasted.

http://biz.yahoo.com/usnews/080610/1...pf=family-home

[skylark68]

If sales are off 45% for the Titan, how many are Nissan selling now? 2? I haven't seen a new Titan since the first year they came out on the roads.

The Commander was going to be axed anyways I thought, so no big loss there.

I'm a little surprised about the 300 and Avalon, but I guess I shouldn't be. The 300 costs a little bit more than the Charger with most of the same features. I've seen a bunch of Chargers on the road with new dealer tags.

I still think Saturn should scrap every vehicle they have with the exception of the Aura and Astra. They need to get back to their roots and sell nicely equipped and styled economy cars. Since Chevy is going to have an Outlook twin, the business case for this entry level large CUV is pretty much gone.

[Mikkoo]

Little doubt why GM is thinking of unloading Hummer. I'm a bit
perplexed however with Saturn sales being down 20%. It has
one of the freshest lineups off all the GM lines.

I noticed in the SF Bay Area, the lowest prices for regular are
now $4.40 per gallon. Won't be long until the most expensive
places to buy gasoline will hit $5.00 per gallon. At that point
GM won't be able to give a Hummer away.

[FenwickHockey65]

With the new 33 MPG Aura, sales should head back in the positive direction. Keyword: SHOULD.

[ChevyRules]

Only brand/vehicle that shouldn't be on the list is Saturn. They finally have a nice lineup and they are still not selling vehicles. Though it isn't a surprise if the Vue and Outlook took sales hits.

[Patate]

Originally Posted by ChevyRules

Only brand/vehicle that shouldn't be on the list is Saturn. They finally have a nice lineup and they are still not selling vehicles. Though it isn't a surprise if the Vue and Outlook took sales hits.

Avalon shouldn't be there as well. It's a lame excuse to justify that this overpriced POS is not selling well. Ford Taurus increased, mainly because SUV buyers consider it as economical. It's supposed to be the same with the Avalon, yet it's not.

[tgagneguam]

Saturn. General Motors has revitalized this division's entire lineup, with enticing new right-size vehicles like the Outlook and Vue crossovers and the Aura sedan. But buyers aren't, well, buying it. Sales are down 20 percent.

Hmmm, some people will take the usual stance with this news by suggesting that Saturn be sold off or simply be closed. Others within General Motors will take the usual approach and either cut factory workers or lower-level salaried positions to compensate for the negative impact that Saturn is having on GM's balance sheet.

I say try a new approach: take the people at the top who were handed a relatively new brand with relatively new dealerships and a whole new lineup who still were not able to manage to just maintain share and show them the door. Time to find more inspired divisional managers who understand what Saturn is and how to tell consumers Saturn's story in a way that will compel consumers to buy Saturns. Sorry, Jill, you've had since 2005, and you're just not cutting it.

My guess is GM will promote Jill to head of North America and move another marketing exec at Saturn to head the Division. You know, since both are doing such stellar jobs.

God, I should have gotten an MBA and worked for American enterprise. 9:00 am - 4:30 pm, zero accountability, zero vision, zero stress, zero experience, and a high six figure salary with a severance package. You can't make this **** up!

[Greg Burr]

How long has the Ion been discontinued? That didn't have an effect, did it?

[BORG]

Saturn is easily replaced by Chevy. The only brands GM should retain in the US is Chevy and Cadillac. Every customer from those brands are seviced equally by Chevy or Caddilac.

[NeilR]

Saturn's problem is management and their dealership network. I called to order a new Sky Red Line and the salesman didn't have a clue. Then when they got one in they called to tell the had one but wouldn't let me test drive. Saturn needs a fresher approach to advertising also in fact all of GM needs a new approach. Their adds are lame.They let other manufactures make consumers think they came up with a new idea first ie.. Ford with their microsoft/onstar copy. GM should taut all of their firsts.

[PeterPuck]

Saturn sold 6,822 Ions last May. That's a big chunk.

The slow Astra sales are a little worrying, though. I think the main buyers are European ex-pats who know how popular the car is in Europe.

My mother-in-law was looking at one, and she wondered why the price was so high -- "It's just a small stupid car, why so much?" were her words I believe...

A co-worker was also looking at one, and wouldn't even look twice because of the price.

I do have a British friend who bought one -- he loves it. He says they beat the crap out of the Focus in Europe...

[sigma]

Originally Posted by PeterPuck

Saturn sold 6,822 Ions last May. That's a big chunk.

The slow Astra sales are a little worrying, though. I think the main buyers are European ex-pats who know how popular the car is in Europe.

My mother-in-law was looking at one, and she wondered why the price was so high -- "It's just a small stupid car, why so much?" were her words I believe...

A co-worker was also looking at one, and wouldn't even look twice because of the price.

I do have a British friend who bought one -- he loves it. He says they beat the crap out of the Focus in Europe...

I have seen several Astra's out on the rode here in MSP (where I'm spending this summer). They look like fantastic cars, unfortunately, people are going to take some time to adjust to seeing Saturn as a VW competitor.

[FenwickHockey65]

Originally Posted by BORG

Saturn is easily replaced by Chevy. The only brands GM should retain in the US is Chevy and Cadillac. Every customer from those brands are seviced equally by Chevy or Caddilac.

Ummm...no.
Let's never, ever, consider this again.

[DuSpinnst]

Originally Posted by PeterPuck

Saturn sold 6,822 Ions last May. That's a big chunk.

The slow Astra sales are a little worrying, though. I think the main buyers are European ex-pats who know how popular the car is in Europe.

My mother-in-law was looking at one, and she wondered why the price was so high -- "It's just a small stupid car, why so much?" were her words I believe...

A co-worker was also looking at one, and wouldn't even look twice because of the price.

I do have a British friend who bought one -- he loves it. He says they beat the crap out of the Focus in Europe...

People in the US are going to have to adjust, small cars are about to get a lot more expensive. Look at the $15k Sub-Compact cars we have, 10 years ago that got you a base Mid-Size.

[PeterPuck]

Originally Posted by sigma

I have seen several Astra's out on the rode here in MSP (where I'm spending this summer). They look like fantastic cars, unfortunately, people are going to take some time to adjust to seeing Saturn as a VW competitor.

I'd like to know how VW was so successful in the eighties at going from low-quality cars like the Rabbit directly to well-regarded compacts like the Jetta and Golf. I don't recall people having misgivings about paying big bucks for those vehicles, after decades of VW junk.