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Automakers Of Large Pickups and SUVs Hail Gas Price Drop


Power Information Network (PIN), an affiliate of J.D. Power and Associates, earlier announced its real-time retail transaction data analysis regarding the decline in gas prices. Said company stressed that because of the decline an increase in owner loyalty rates for pickup trucks and sport utility vehicles is observed.

PIN earlier reported that in the past few months soaring fuel prices have adversely affected the loyalty rate for pickups and SUVs. PIN observed that the owner retention rates for huge pickup trucks, large utility and midsize utility vehicles significantly rose in the seven-week period from mid-August to early October this year. Said increase was attributed to the same period when gas prices steadily dropped and averaged .66 per gallon as compared to the seven weeks when gas prices averaged .04.

According to the data gathered by the company, four out of six large pickup models, four out of five large utilities and seven out of seven midsize utilities all experienced increases in owner retention from mid-August to early October. The company measured owner retention by the percent of owners in any specified category who trade for another vehicle in similar category.

"It's early, but this data suggests there still is life in these segments," says Tom Libby, senior director of industry analysis at PIN. "These segments are important because they include many high-volume, high-profit models. These findings are also relevant because Ford, General Motors and Toyota all have new products coming in these segments."

The increase in sales of large pickups and SUVs is expected to overwhelm automakers that rely on said segments. As a fact, said segments account for almost one-quarter of new-vehicle sales. Some of the vehicles in these segments that are anticipated to make it big in the market include Chevrolet Suburban, Ford Expedition, Jeep Grand Cherokee and Toyota 4Runner.

Chevrolet Suburban is a large SUV, which was produced in the year 1935. It uses high-performance Chevrolet auto parts to produce enthralling performance. In fact, it is famous as a police car, EMS fly-car or fire chief's vehicle. Ford Expedition is a full-size SUV. Next year, it will be redesigned using the T1 platform. Jeep Grand Cherokee is a midsize SUV which utilizes quality Jeep parts to boost power and appeal. Toyota RAV4, on the other hand, is a compact crossover SUV, which was redesigned for the 2006 model year.


About the Author: As a former news correspondent for an auto-related website, Stacey has gathered extensive knowledge and experience in the automotive industry. This 34 year old mother of two from Memphis is a genuine car lover.




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