The Full Sized SUV Keeps GM Steady
Back in 2008, of all the villains of the economic crisis, none were so thoroughly denounced as the massively popular Sport Utility Vehicle. The SUV became a symbol of all that was wrong with the auto industry and in a broader context, American society itself – since literally that’s what everyone seemed to be driving!
Since then smaller more fuel efficient vehicles have increased in sales, and yet numerically trucks and SUVs still outsell all other categories in the US. And most importantly, they offer the manufacturers the highest profit margin per vehicle… sometimes 80 percent more than the small fuel-efficient models.
As General Motors faces more recalls and signs of consumer backlash in sales, it is the company’s 70 percent dominance of the full sized SUV market that keeps it financially fit.
And while SUV mileage is still an issue, the improved combined city and highway stats of 18 mpg for GM’s big trucks, make the other convenience factors an easier trade-off.
This George Polgar of GT Marketing for KYW News Radio.