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September 28, 2005
Consumers Run to Small Cars From High Gas Prices
In just a couple days, we'll find out how big the rush to downsize into small cars really is, when September sales numbers come out. This article has anecdotal evidence that small cars are flying off the lot, citing Toyota as having only an 8.7 day inventory of the Corolla on dealers' lots.
Is this month going to be bad for the light truck category? You bet.
Is this permanent? Maybe.
This economist writes that it will take several years of high gas prices to effect a deep, permanent market change from SUVs to cars.
There's also the question of short-term reaction to gas prices, which is for real, and the long-term concept of what people actually need and like to drive.
I covered this in an article on form factor, suggesting that people have both a real need for certain types of vehicles such as SUVs, pickups and minivans, and also react to personal and public emotions regarding vehicles.
For a while SUVs were certainly considered hot by many and loathed by a few. Now the situation, for the time being, is reversed.
That's going to affect buying choices for the next several months. Personally I stand by my idea that crossovers, minivans and station wagons may benefit from a mass migration away from massive SUVs.
People still need seating, storage and functionality in their vehicles.
Posted by Frank at September 28, 2005 1:20 PM | Filed under Auto News