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As Gas Costs Soar, Buyers Prefer Small Cars like Toyota

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Old May 2, 2008 | 02:15 PM
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Default As Gas Costs Soar, Buyers Prefer Small Cars like Toyota

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http://www.nytimes.com/2008/05/02/bu...02auto.html?hp
The switch to smaller, more fuel-efficient vehicles has been building in recent years, but has accelerated recently with the advent of $3.50-a-gallon gas. At the same time, sales of pickup trucks and large sport utility vehicles have dropped sharply.

In another first, fuel-sipping four-cylinder engines surpassed six-cylinder models in popularity in April.

“It’s easily the most dramatic segment shift I have witnessed in the market in my 31 years here,” said George Pipas, chief sales analyst for the Ford Motor Company.

The trend toward smaller and lighter vehicles with better mileage is a blow to Detroit automakers, which offer fewer such models than Asian carmakers like Toyota and Honda. Moreover, the decline of S.U.V.’s and pickups has curtailed the biggest source of profits for General Motors, Ford and Chrysler.

Once considered an unattractive and cheap alternative to large cars and S.U.V.’s, compacts have become the new star of the showroom at a time when overall industry sales are falling.

Sales of Toyota’s subcompact Yaris increased 46 percent, and Honda’s tiny Fit had a record month. Ford’s compact Focus model jumped 32 percent in April from a year earlier. All those models are rated at more than 30 miles per gallon for highway driving...

... “The era of the truck-based large S.U.V.’s is over,” said Michael Jackson, chief executive of AutoNation, the nation’s largest auto retailer.
Old May 3, 2008 | 04:00 AM
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you dont say...
Old May 3, 2008 | 04:04 AM
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Time to invest in Toyota stock?
Old May 3, 2008 | 05:45 AM
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I say HEEEEEELLLLLLLLL NYAAHHHHHHHHHH!!!! take this high gas prices!!!





Screw the mortgage! I'm gonna need it for gas in this thing!
Old May 3, 2008 | 06:23 AM
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btw, instead of running boards, it has STAIRS. hah
Old May 3, 2008 | 07:03 AM
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not as bad as my families charter boats, for every half mile they take a gallon of diesel thats .5mpg! and we fill up over a hundred gallons of diesel a day! during the summer.
Old May 5, 2008 | 06:36 PM
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unfortunately, Scion's have gone up in size & down in MPG...

at least Toy hasn't killed the Yaris yet, ev though the XA was a way cooler car.

don't forget Toyota has a V8-powered truck...
Old May 5, 2008 | 08:12 PM
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Originally Posted by mrexotica
unfortunately, Scion's have gone up in size & down in MPG...

at least Toy hasn't killed the Yaris yet, ev though the XA was a way cooler car.

don't forget Toyota has a V8-powered truck...
QFT!



-THE DON
Old May 8, 2008 | 02:07 PM
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Originally Posted by curtislo9
Time to invest in Toyota stock?
Toyota's sales (in the US at least) are down a bit too, and they obviously make more profit on a Tundra than a xD, so the shift to small cars isn't a universal plus for them. Plus, the dollar is weak, which hurts them (imports from Japan or elsewhere cost more for US consumers, exports are cheaper for overseas buyers).

Of course, all that means is they will probably only make five billion dollars in profit this fiscal year, as opposed to the ten billion dollars in profit they've made each of the last three fiscal years. However, the probable drop in profit will probably mean their stock goes down a bit.
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