GM Dealers Report `Resurgence' in Pickup, SUV Demand

[neshapop]

Originally Posted by MaxLegroom

Do we ever have a winner here!

I'd say stick by your more efficient vehicles, continue with the efforts to save gas. I wouldn't trust the decrease in gas prices to last, but to see them creep up slowly.

I agree, oil market experts already licking their lips regarding oncoming hurricane Gustav.

[TechnoAura]

The two most likely reasons for this resurgence in SUV and pickup truck demand is the recent dip in gas prices, along with GM's employee pricing program . Neither one of these factors will last long. Let's see what happens to the demand once gas prices again spike and GM's employee pricing program comes to an end.

[TechnoAura]

Originally Posted by MaxLegroom

I'd say stick by your more efficient vehicles, continue with the efforts to save gas. I wouldn't trust the decrease in gas prices to last, but to see them creep up slowly.

I agree!

[SierraGS]

I am not surprised, recently I have noticed a larger percentage of the reduced traffic volume in SoCal is made up of Pickup Trucks which leads me to think the rumors of Pickup trucks demise are overdone.

I can see more of a drop in car demand if commuters use public transportation or telecommuting in place of driving to work.

Pickup truck demand will rebound with the housing market and this should start within the next 12 months, full size SUV sales will drop mainly due to attractive alternatives like the GM Lambda line.

The Truck market is made up of a high percentage of buyers that use them to make a living or maintain a outdoor lifestyle of some kind, with the remainding percentage made up of "occasional" truck users who buy trucks as second or even third vehicles and use them enough as truck to justify owning them. There will always be a small percentage who buy trucks for image only and most of them may go elsewhere for their ego fix, but this is a very small number compared to the overall Truck market.

GM needs to maintain a focus on full size trucks, not a much as the past - but it must stay competitive.

[63GrandSport001]

Originally Posted by SierraGS

I am not surprised, recently I have noticed a larger percentage of the reduced traffic volume in SoCal is made up of Pickup Trucks which leads me to think the rumors of Pickup trucks demise are overdone.

I can see more of a drop in car demand if commuters use public transportation or telecommuting in place of driving to work.

Pickup truck demand will rebound with the housing market and this should start within the next 12 months, full size SUV sales will drop mainly due to attractive alternatives like the GM Lambda line.

The Truck market is made up of a high percentage of buyers that use them to make a living or maintain a outdoor lifestyle of some kind, with the remainding percentage made up of "occasional" truck users who buy trucks as second or even third vehicles and use them enough as truck to justify owning them. There will always be a small percentage who buy trucks for image only and most of them may go elsewhere for their ego fix, but this is a very small number compared to the overall Truck market.

GM needs to maintain a focus on full size trucks, not a much as the past - but it must stay competitive.

The problem with the first part of what you have stated is its far from being based on anything scientific, Today I saw a few Hummer H1s does that mean that Hummer H1 sales have sky rocketed? ofcorse not.

No the truck and SUV market is not going to completely die off but its going to be reduced as gas prices will continue to increase in the long run.

Another flaw is that you have stated that the housing market will rebound in 12 months which we honestly do not know but the people that I know who are in the housing business says it will be bad for at least 24 months (2 years) if not longer.

Another flaw is that most truck buyers are those who make a living off of them, if that were true then truck sales would not be down nearly as much as they are. A large number of trucks owners are those who own houses so its possible that when the housing market recovers we will see a slight increase in truck sales.

however when the F series have fallen from its 900,000+ sales a year and the GMT-900s have drop so much from 1,000,000 a year this shows that you have a lot of non professionals who buy and own trucks. The F series will probably sell 600,000 this year if its lucky and the same can be said about the GMT-900s as well. they are offering huge incentives to provide a boost in sales which will come at the cost of profits (get ready for another big multi billion dollar loss.....).

[Hitman1970]

There are many cubicle cowboys in Huntsville. I do not think you need an F-350 King Ranch to "haul" your Blackberry to the office, but it is their choice to make.

[sixspeed]

Originally Posted by 2648562

I was really thinking about a Trailblazer SS tonight. There's probably never going to be another vehicle like it. 12/16 ain't gonna cut it though.

A swap to a part time transfer case might cut it tho.

Could have been 15/20 instead.

[SierraGS]

Originally Posted by 63GrandSport001

The problem with the first part of what you have stated is its far from being based on anything scientific, Today I saw a few Hummer H1s does that mean that Hummer H1 sales have sky rocketed? ofcorse not.

No the truck and SUV market is not going to completely die off but its going to be reduced as gas prices will continue to increase in the long run.

Another flaw is that you have stated that the housing market will rebound in 12 months which we honestly do not know but the people that I know who are in the housing business says it will be bad for at least 24 months (2 years) if not longer.

Another flaw is that most truck buyers are those who make a living off of them, if that were true then truck sales would not be down nearly as much as they are. A large number of trucks owners are those who own houses so its possible that when the housing market recovers we will see a slight increase in truck sales.

however when the F series have fallen from its 900,000+ sales a year and the GMT-900s have drop so much from 1,000,000 a year this shows that you have a lot of non professionals who buy and own trucks. The F series will probably sell 600,000 this year if its lucky and the same can be said about the GMT-900s as well. they are offering huge incentives to provide a boost in sales which will come at the cost of profits (get ready for another big multi billion dollar loss.....).

My "observation" of a higher truck percentage in the reduced traffic was based on 100 days of commuting, I have picked out many trends in the past this way and a review of August auto sales proves that my gut feeling that the rumors of the truck market going away were overdone.

Given the Fredi-Mae bailout (takeover) over the weekend by the treasury the housing market (mainly for this topic - the construction portion) will start to rebound within 12 months, easily.

The number 1 (Silverado), 4 (F-Series), 8 (*Ram) and 10 (Sierra) sellers in August were trucks.

* Toyota combines Corolla/Matrix sales which were 29,443 but when you reduce it by sales of Ponitac Vibe 6,243 it drops the Maximum number of Corollas to 23,200 below the 24,974 of the Ram but above the 20,297 of the Sierra.

To further clarify the logic Toyota has built 64,992 Matrix YTD and GM only 48,515 Vibe, so using the Vibe sales numbers to adjust combined Corolla/Matrix sales should make up for all but the wildest monthly sales swing.

Oh, and oil is heading toward $80.00 a barrel.

[Joe in T.O.]

This should help clear some inventory.

[marinerbc]

I still think that when push comes to shove, and people get over the knee jerk reaction to a jump in gas prices, they'll go right back to the BIG vehicles they love so very much.

We have small vehicles; I haven't actually seen a red light at an intersection in years, unless I'm the first car there.