
Following the recent news of GM closing its truck and SUV plants, new reports hint that Ford, Nissan and Toyota may follow suit, effectively ending the 15-year reign of oversized gas guzzlers. GM plans to have the doors closed by 2010.
Technoride says that because of the rising gas prices, now averaging around $4.00 a gallon, “car sales, which accounted for half of the industry’s volume last year, hit 57 percent last month, while truck sales fell by double-digits to their lowest levels since 1995.” Most automotive experts believe that these developments are more than a fleeting phase and signal a major shift in industry thinking.
“We’ve never seen this big of a change in the product mix, this fast,” said Jesse Toprak, chief industry analyst at Edmunds. “Certainly five to 10 years from now you’re going to look back and say the spring of ‘08 was the turning point. Even if gas prices go down for a month or two, consumers are not going to rush back out and buy SUVs. This appears to be a permanent shift.”