AFP. Sales of full-sized sports utility vehicles should continue to drop significantly as consumers shift to smaller, car-based crossover SUVs, according to Ford’s sales analysis manager George Pipas.
Speaking at a Bank of America conference, Pipas predicted that overall sales of full-sized SUVs in the US market will fall to two million vehicles in 2006 compared with about 2.4 million in 2005. He also predicted that crossovers will continue to overtake their bulkier counterparts in sales volume as they have for the past three months and said there is an opportunity for growth in that segment.
Pipas has been predicting a slowdown in full-sized SUV sales for three years. He said high gas prices have merely accelerated the slowdown.
If gas prices stabilize I think we may see some support in the (full-sized) segment, but not a boost. If gas prices don’t stabilize I think it’s going to be a very tough endeavor to sell mid-sized and full-sized SUVs.—George Pipas
US sales of full-sized SUVs dropped 34.6% in November from the prior year. (Earlier post.)