RIP SUV
June 10, 2008
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The mighty SUV, long time symbol of suburban lifestyle and a carbon footprint that is too big for its own good and now going the way of the Dodo bird.
Yesterday, Nissan became the latest of the large auto manufacturers to announce they are cutting back production of SUVs in favor of smaller, more fuel efficient cars. The market for the gas-guzzling SUVs has plummeted lately as rising oil prices make the cost of filling up these light trucks too high for most. Add to that the ongoing emphasis on global warming and the carbon footprint of these machines is simply too big.
Last month, sales of SUVs fell by more than 10% to their lowest level since 1995, while sales of small cars continues to rise.
The Ford F-150 was knocked off its top spot in America last month, bested by the Honda Civic and three other Japanese Sedans, all with a much smaller carbon footprint than any SUV. Last week GM announced a drastic change in their strategy, moving towards more small, fuel efficient cars and even offloading their iconic Hummer, which has become a symbol of waste.
While many expected a general market shift towards small cars, the speed of the change is astonishing many observers. “We’ve never seen this big of a change in the product mix, this fast. Certainly five to 10 years from now you’re going to look back and say the spring of ’08 was the turning point,” said Jesse Toprak, an industry analyst.
The car market as a whole has been hard hit by the rising oil prices
combined with the housing price and sluggish economy. It seems to many that small cars and hybrids are the only things keeping the big car makers going now. Demand for hybrids has surpassed their supply and dealers are now forced to put new customers onto waiting lists.
Despite these temporary problems, this is no doubt a good trend for the auto industry as they reign in gas consumption and reduce their carbon footprint. We are all certainly feeling the high oil prices in our pocketbooks, but its long term impact will surely be a positive one.
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