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Some declared the SUV market dead when gas prices topped $3 a gallon last year, and said General Motors Corp. was foolish to invest billions in a lineup of new large SUVs.
But sales of the new Chevrolet Tahoe are so strong that GM is now trying to speed up the launch of several other SUVs and ship them to dealerships two to four weeks ahead of schedule, Mary Sipes, GM's vehicle line director for large trucks, said Tuesday.
The Tahoe -- with better fuel economy and added features -- has been on sale only since early January, but sales are up 49.8% from January and February last year.
And the surprising surge comes without a cent of incentives on the new model, which is selling for more than the vehicle it replaced. GM is offering incentives of as much as $7,500 on the older Tahoe.
The strong early sales of the Tahoe and GM's confidence in its upcoming SUVs show that there is life left in the SUV market, even with sales of most other SUVs down in 2006. If Tahoe's success is any indication, the key seems to be bringing in new models. Ford Motor Co. and the Chrysler Group also plan new SUVs this year.
GM's highly profitable SUVs also give hope to the struggling automaker.
Dealers can't get enough of the new Tahoe, Sipes said.
"I've had people find that I have the only white one in the area, and they drive quite a few miles to get it," said Steve Cook, owner of Cook Chevrolet-Pontiac-Buick in Vassar, a town 20 miles east of Saginaw. "Everybody really likes the look."
Even Donald Trump has taken notice. In Monday's "The Apprentice" on NBC, the Tahoe took a starring role as aspiring Trump assistants were challenged to create a training event for Chevrolet dealers and marketing executives.http://www.freep.com/apps/pbcs.dll/article?AID=2006603150331
But sales of the new Chevrolet Tahoe are so strong that GM is now trying to speed up the launch of several other SUVs and ship them to dealerships two to four weeks ahead of schedule, Mary Sipes, GM's vehicle line director for large trucks, said Tuesday.
The Tahoe -- with better fuel economy and added features -- has been on sale only since early January, but sales are up 49.8% from January and February last year.
And the surprising surge comes without a cent of incentives on the new model, which is selling for more than the vehicle it replaced. GM is offering incentives of as much as $7,500 on the older Tahoe.
The strong early sales of the Tahoe and GM's confidence in its upcoming SUVs show that there is life left in the SUV market, even with sales of most other SUVs down in 2006. If Tahoe's success is any indication, the key seems to be bringing in new models. Ford Motor Co. and the Chrysler Group also plan new SUVs this year.
GM's highly profitable SUVs also give hope to the struggling automaker.
Dealers can't get enough of the new Tahoe, Sipes said.
"I've had people find that I have the only white one in the area, and they drive quite a few miles to get it," said Steve Cook, owner of Cook Chevrolet-Pontiac-Buick in Vassar, a town 20 miles east of Saginaw. "Everybody really likes the look."
Even Donald Trump has taken notice. In Monday's "The Apprentice" on NBC, the Tahoe took a starring role as aspiring Trump assistants were challenged to create a training event for Chevrolet dealers and marketing executives.http://www.freep.com/apps/pbcs.dll/article?AID=2006603150331
