SUV Growth to Remain Flat, GM Exec Says

[UNCjigga]

A report quotes a GM executive saying that even with the new vehicle's fuel efficiency the segment's sales will be flat.

GM, which unveiled Tuesday its 2007 Chevrolet Suburban and Tahoe as well as the GMC Yukon and Cadillac Escalade, is projecting sales to maintain current levels, according to report by the trade publication Automotive News.

"It is realistic to assume the segment won't grow," said Robert Lutz, GM's vice chairman of global development, was quoted by the trade publication as saying.

GM (down $0.23 to $31.08, Research) did not return CNN/Money's calls seeking comment.

GM says it currently sells 60 to 62 percent of the 750,000 large SUVs sold in America annually and leads in certain sales categories, including the large-luxury market, the report said.

Lutz blamed record gasoline prices for the lack of growth in the SUV market, and said that GM's market share and the segment volume should hold steady, according to Automotive News.

"People are still going to buy full-sized sport-utilities at $3 a gallon. But even at $3 a gallon, it's 750,000 people a year. It's not going to go to a million," Lutz was quoted as saying. "Two years ago we would have told you the segment is going to go to a million vehicles. It's not going to do that. It's leveled off.

"We think 750,000 (units) is the best prediction based on today's fuel prices. I think we may maintain our volume at other people's expense, even if the segment shrinks a little bit," Lutz said according to the report.

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Sorry Domestics, looks like its time to learn how to build a fuggin' sedan again!

Ford is looking good with the 500/Fusion combo, and Chrysler has the 300/Charger. But GM sedans still SUCK COCKROACHES compared to anything else. Tough years ahead until they fix that.

 

[UNCjigga]

bump for YellowFiero!

 

[ajpa123]

Flat... jus like the chest of my old high school teacher.. real flat !

 

[mercanucaribe]

Originally posted by: UNCjigga
A report quotes a GM executive saying that even with the new vehicle's fuel efficiency the segment's sales will be flat.

GM, which unveiled Tuesday its 2007 Chevrolet Suburban and Tahoe as well as the GMC Yukon and Cadillac Escalade, is projecting sales to maintain current levels, according to report by the trade publication Automotive News.

"It is realistic to assume the segment won't grow," said Robert Lutz, GM's vice chairman of global development, was quoted by the trade publication as saying.

GM (down $0.23 to $31.08, Research) did not return CNN/Money's calls seeking comment.

GM says it currently sells 60 to 62 percent of the 750,000 large SUVs sold in America annually and leads in certain sales categories, including the large-luxury market, the report said.

Lutz blamed record gasoline prices for the lack of growth in the SUV market, and said that GM's market share and the segment volume should hold steady, according to Automotive News.

"People are still going to buy full-sized sport-utilities at $3 a gallon. But even at $3 a gallon, it's 750,000 people a year. It's not going to go to a million," Lutz was quoted as saying. "Two years ago we would have told you the segment is going to go to a million vehicles. It's not going to do that. It's leveled off.

"We think 750,000 (units) is the best prediction based on today's fuel prices. I think we may maintain our volume at other people's expense, even if the segment shrinks a little bit," Lutz said according to the report.

Full Story

Sorry Domestics, looks like its time to learn how to build a fuggin' sedan again!

Ford is looking good with the 500/Fusion combo, and Chrysler has the 300/Charger. But GM sedans still SUCK COCKROACHES compared to anything else. Tough years ahead until they fix that.

Why should they bother? People are STILL buying full size SUVs as much as they used to.

 

[UNCjigga]

The problem is GM thinks their market share will hold steady, and I'm not sure I agree with that. I still think they're way too dependent on the large SUV market, which other manufacturers have ignored or left even while it was still lucrative. I see smaller SUVs stealing sales too--not sportutes, but midsize SUVs like the Jeep Cherokee/Commander.