Some SUVs Still Hot Despite Gas Prices

Posted on May 17, 2006

Not everyone is rushing to buy a new hybrid. An article in Newsweek says SUV models like the SRX and the Cadillac Escalade are still in demand by consumers that appear more concerned with the type of vehicle they buy then the gas mileage it gets. The article says White House chief of staff Andy Card picked up a SRX last week.

SUV dealer Daniel Jobe told Newsweek, "My biggest problem is not gas prices," says Jobe, "it's getting enough of these trucks."

The article says manufacturers are also still making cars that guzzle gas despite the higher gas prices. It says 25% of new models still come with a V-8 engine - the same percentage as last summer. It also says hybrids still account for only 1% off auto sales in the U.S. Suvs are outselling them 23-1.

It is good to see consumers still buying vehicles but it probably indicates that the demand for gas in the U.S. isn't going to be decreasing anytime soon. Not as long as people are still happily buying vehicles with gas mileage as bad as 13 mpg.
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