Thursday, July 3, 2008

The Romance is Over

...or, the dominance of the SUV in America is about to end. No big surprise that large, inefficient vehicle sales are down - 55% for Ford alone.

By comparison, Ford's largest SUV, the Expedition, gets 12 miles per gallon in the city and 18 on the highway.

George Pipas, Ford's top sales analyst, said retail -- or non-fleet -- sales of passenger cars exceeded those of trucks and sport-utility vehicles combined for the first time in at least 20 years.

Interesting CIBC report predicting $7/gallon gas within 2 years, among other things:

As gasoline prices climb inexorably, American driving habits are going to have to undergo a massive change, mimicking the driving habits long adopted by Europeans who have faced much higher gas prices.

Over the next four years, we are likely to witness the greatest mass exodus of vehicles off America’s highways in history.

CIBC Report

*The CIBC World Markets is the investment subsidiary of the Canadian Imperial Bank of Commerce... not exactly a "looney left" group of hippies claiming doomsday scenarios.

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