Released from the department of obvious at FoMoCo, the CEO releases a statement that finally clears up why people aren't buying SUVs anymore... yes its gas prices!
It's no secret that ever-rising fuel prices have greatly shifted consumer demand from trucks and SUVs to lighter and more efficient cars and crossovers, but at what price point did the shift actually occur? According to Ford CEO Alan Mulally, $3.50 was the breaking point.
Ford — as well as the rest of the industry — has seen a drastic reduction in the demand for trucks and SUVs, and it's quite possible that those segments may never fully recover. Truck sales have plummeted from a 14.1 percent share of the market in 2007 to just 9 percent today. SUV sales have fallen even further, capturing just 4.4 percent of the market today, down from 8.4 percent in 2007.
"You just cannot make cars that people don't want," Mulally told Automotive News.
If $3.50 was the breaking point, every cent over that line only accelerates the pace at which consumers will leave their inefficient vehicles. With gas averaging $3.83 per gallon with no ceiling in sight, automakers might have to largely abandon the once profitable truck and SUV segments. "It seemed to us that we reached a tipping point where customers began shifting away from these vehicles at an accelerated rate," Mulally said. "Based on everything we can see on the outlook for fuel prices, we do not anticipate a rapid turnaround in business conditions."
Ford announced earlier this week that it would not meet its current North American turnaround goals due to the sagging market. www.leftlanenews.comalong the same line, I saw one of these on the streets the other day, and felt sorry for the poor sucker who bought it. (it was actually a lady driving it!)
wow... this is
different
Ford declares 3.50 too much for gasoline
Ford declares 3.50 too much for gasoline
Ford declares 3.50 too much for gasoline
Ford declares 3.50 too much for gasoline
