US:Ford: Gasoline prices hurting big SUV sales
Ford: Gasoline prices hurting big SUV sales
Reuters / September 08, 2004
DETROIT -- High U.S. gasoline prices are hurting the sales of one of Ford Motor Co.'s highly profitable sport utility vehicles, the automaker said on Wednesday.
Sales of the Ford Expedition, a full-sized SUV that gets about 16 miles per gallon, fell 23 percent in August and are down nearly 13 percent year-to-date despite heavy consumer incentives. Ford offers $4,000 cash back on the SUV, which received a major make-over two years ago.
"Expedition, of course, is down," said Ford Division President Steve Lyons. "By and large I think that is a by-product of fuel prices."
While Lyons only referred to the Expedition, sales of other big SUVS have also been disappointing this year.
Sales of the gas-thirsty Ford Excursion -- a lightning rod for criticism from environmental groups -- fell 44 percent last month and are down 20 percent year-to-date.
Sales of General Motors' bulky, gas-guzzling Hummer H2, which gets about 13 miles to the gallon, fell 11 percent in August, meanwhile, and are down 21 percent year-to-date.
The aging Chevrolet Suburban SUV, also from GM, saw its sales fall nearly 33 percent in August.
"Overall there has been a little pressure on the industry," Lyons said, referring to the high gasoline prices.
Detroit's Big Three automakers all make a major share of their automotive profits from sales of truck-based sport utilities and pickup trucks. And all have sought to play down the impact of higher fuel prices so far this year.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....