It must be pure hell being in the auto industry these days--and especially so if you're a product planner. Last spring, with the huge spike in fuel prices, everyone was bailing on any vehicle that hinted at being large. Now that we've started to see an ever-so-slight reduction in fuel prices, folks shopping vehicles are again starting to think "bigger" again. ...Uh...will we ever learn?
AutoObserver has a great editorial up on this latest--and at the moment--very subtle trend. Probably the best quote is at the very end by Jeremy Anwyl, CEO of Edmunds.com:
"But what's going on now points to a bigger truth. Instability in the marketplace is probably the one thing that we're absolutely going to have to get used to."
Yep. We have to learn to ride the waves here folks and not panic. We also have to recognize that the good old days are just that--good old days--and they ain't comin' back.
Here's more from Green Car Advisor (which links to the AutoObserver editorial): Rush to Fuel-Efficient Vehicles Recedes, Edmunds.com Research Suggests
ateixeira says:
09:01 AM, 08/12/08
No we will not ever learn. :(
greenpony says:
12:50 PM, 08/12/08
This just proves that the majority of people who shop for cars are not concerned about the long-term. They may need a large SUV to haul around a family of five (and all their junk) but be stuck with four more years' payments on a midsize 4-cyl sedan. Or they may have just traded in that fun V8 sports car that they were upside down on for a fuel sipper -- again with several years of payments. Or maybe they just bought a brand new SUV because the deals are so enticing, only to find that they jumped the gun on the pruchase without thinking of all the ancillary costs. But you know what? I don't feel sorry for anyone regretting their decision. I don't feel sorry for the automakers either. I'm happy with my sports car, my 4WD truck, and my econo box. I did my research, I'm in it for the long term, and I'm happy with my decisions, no matter what the price of gas is. But then, I've never been one follow sheeps' trends.
crowb says:
12:50 PM, 08/12/08
Maybe the uptick in people researching the big vehicles has to do with the fact that everyone knows they are uber cheap now. So people are checking to see what's out there. After all, if you can get a truck for half off, then it suddenly becomes quite a deal. Why not research it a little just in case?
Besides people researching and forking over cash are two different things...
I say all of this because I want the average buyer to be smarter than they appear to be. I know I'm wrong, but allow me to continue to delude myself.