This should seal GM's fate. Article in my local paper.

[markd79ta]

If you want to talk about the "demise" of GM or Ford or even Chrysler, then SUV's are only part of the problem. Don't forget that Toyota and Nissan also sell many many SUVs and Trucks as well. The big difference is they do a much better job with the car segment of their business as well. The big three and in particular GM and Ford have to do a better job in the car market as well and that is what I see as the problem. I recently saw an automotive analyst talking on this very subject and he doesn't see fuel prices causing the demise of the SUV. He remarked it was only a temporary setback for now and I tend to agree with him.

I just got my latest issue of Car and Driver. If you have it ,or can at least read it, take a look at Brock Yates monthly column on this very subject. He has a lot of eye opening information in there on the subject being discussed here.

That is exactly my point. GM put their eggs in the SUV basket and ignored their cars. Their profits are really dependent on their SUVs and trucks selling. If these vehicles don't sell, they lose. I know that Ford is in the same boat. However, Chrysler is by far better off. The 300/Charger is selling like crazy. It is an excellent alternative. Really, it all goes back to their cancelling of Zeta in favor of the new SUV in a time when more and more people will by buying cars. It seems rather stupid to me.

[markd79ta]

Yeah... My Brother works for a GMC/Chrysler/Jeep dealership. My Wife isn't crazy about the Libertys, plus we have three young kids. It would be tight to say the least. My Brother all but talked us clear out of a Grand Cherokee. Chrysler refuses to fix the enormous transmission problems the GC and Durangos have. Those are the only two vehicles his delaership ever STOCKED transmissions for. He said the Libertys are put together real nice, though.

That would certainly be a tight fit with three kids. I definitely wouldn't go with the Grand Cherokee or the Durango for a variety of reasons. However, it is likely that both the Cherokee and the Durango will get the new diesel drivetrains in the next year or two. Their transmission problems on the small V8s are the reason I went with the V10 Ram...same tranny as put on the Cummins...pretty solid for a Chrysler tranny. Personally, I really want the 300C CDC that will hopefully come to the US market in the next year or two.

[thomas]

Ken, did you see the statistics in the article? SUV sales off over 40% nationally over last year. There was just a piece on our local tv yesterday about sales of used SUV's and how many dealerships have stopped accepting SUVs as trade in because they can't get rid of them. If they do take them, they're giving way less than blue book for them. I think $3.00/gallon gas has made a lot of people realize they don't need an SUV and they can manage with a sedan or a small crossover.

As you said, many people buy them for the status symbol or because they want the big vehicle, not because they really need an SUV. It's the people who really need them that will keep buying them, those who want the status will find a different way to get it.

I cant give away the suv's I have on my lot. I do have about 15 vw that are sellin pretty good though. There will always be an suv market but I do think it is slowing down alot.

[Joe 1320]

I cant give away the suv's I have on my lot. I do have about 15 vw that are sellin pretty good though. There will always be an suv market but I do think it is slowing down alot.

Anyone remember a few months back when I predicted this? told you guys that this was going to happen.

[Dave M]

Anyone remember a few months back when I predicted this? told you guys that this was going to happen.

No offense Joe, but everybody, including GM, should have seen this coming months, if not years ago. Gas prices have been on a steady incline for well over a year. Katrina was just the final straw and hastened the problems.

[Joe 1320]

No offense Joe, but everybody, including GM, should have seen this coming months, if not years ago. Gas prices have been on a steady incline for well over a year. Katrina was just the final straw and hastened the problems.

I agree....... two years ago I had a funny feeling. Then as gas skyrocketed that feeling became a forecast of the future. People laughed at me and said that fuel costs wouldn't persuade people to give up their SUVs for more fuel effecient transportation, now here those same poeple are looking towards better fuel economy.

[Christopherrr]

That is exactly my point. GM put their eggs in the SUV basket and ignored their cars. Their profits are really dependent on their SUVs and trucks selling. If these vehicles don't sell, they lose. I know that Ford is in the same boat. However, Chrysler is by far better off. The 300/Charger is selling like crazy. It is an excellent alternative. Really, it all goes back to their cancelling of Zeta in favor of the new SUV in a time when more and more people will by buying cars. It seems rather stupid to me.

They aren't/weren't ignoring their other cars in my opinion. Just holding them over. Some of GM's new products, albeit on par with the competition, are the best products GM has ever produced.

Profits - monies left over after everything is paid - is what a company uses to develop new products...most companies, that is. GM wanted to dip into what made the most profits...SUV's. Can you blame them? If I was running a giant company and losing a lot of ground profit wise, wouldn't you dip into what made you the most money?

More Profit = more money to develop new products.

I'm giving GM the benefit of the doubt...I trust GM knows what it's doing.

[Fawkes6]

the same thing that is happening with SUVs right now is what happened to the large luxo sedan back in the late 70s...gas prices climbed like crazy and those big block powered land yachts turned into dinosaurs overnight.
the people out there who really use an SUV (towing, large loads, big families and going off-road) have always bought that kind of vehicle...they bought Suburbans and Grand Wagoneers way before they were "fashionable"
To me, the biggest indicator that the whole SUV market is out of control is when automakers like Porsche and BMV jumped on the bandwagon. Those trucks are built strictly for the US market because nobody else on the planet wants them...and I'm sorry folks but the whole idea of a "performance SUV" is a ludicrous contradiction of terms IMO...you cant have high ground clearance and low center of gravity, no matter how much traction and stability electronics you chuck into it...I saw a commercial on TV not long back telling people to "just breathe" over the excitement of a supercharged Land Rover...gimme a break...thats like saying a blown 502 sticking out of the hood of a Hummer H2 is supposed to get my heart racing as if I was staring at some awesome twin turbo FireHawk...the "performance" and the "luxury" SUV are two trends that when they die their miserable deaths, I'll be one of the first to say "not a moment too soon"

[Dave-S]

The latest issue of Motor Trend features all the 06 models of trucks, SUVs, and vans by every single manufacturer out. There must be a gazillion different models of these things and they are just as prolific with the import manufacturers as they are with Ford, GM, and Chrysler. So every one of these folks will feel the hurt to some extent........not just GM alone. The trick will be to market these bigger vehicles in a way that people will still buy them. It ought to be interesting in the months ahead to see the strategies develop.

[Dave M]

If GM wants to make a killing in the near future, it should drop the Montana name from it's minvan and give it a hybrid option for under $30,000. All those families out there that are dropping their SUVs will be looking for something to haul the kids around in, and I think a hybrid minivan would be a real draw. But you need to make it a quality product with some great inovations, market it effectively, and most important price it competitively. If you build it, they will come.

[Steel2686]

That would certainly be a tight fit with three kids. I definitely wouldn't go with the Grand Cherokee or the Durango for a variety of reasons. However, it is likely that both the Cherokee and the Durango will get the new diesel drivetrains in the next year or two. Their transmission problems on the small V8s are the reason I went with the V10 Ram...same tranny as put on the Cummins...pretty solid for a Chrysler tranny. Personally, I really want the 300C CDC that will hopefully come to the US market in the next year or two.

A diesel Cherokee or Durango is interesting. If they can guarantee the transmission problems will be all but gine, I may look further. I would love the CDC also. Actually, I want the 300 SRT8, but the Wife probably wouldn't allow that...