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Energy Insights: Energy News: SUV sales hit 8-year peak in November

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SUV sales hit 8-year peak in November


02-01-2011

By Chris Woodyard and Jack Gillum • USA TODAY

Sport-utility vehicles and crossovers in November hit their highest share of new vehicle sales in eight years compared with sales of cars and pickups, a USA TODAY analysis shows

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The analysis of Edmunds.com data for November sales since 2002 shows an uptick for SUVs and crossovers (SUV-style vehicles on a car chassis) to 32.4% of new vehicle sales last month, up from 29% a year ago and 25.9% in 2008.

With gas prices rising -- now more than $3 a gallon for regular nationally -- the comeback is a sign that family haulers are beginning to shake their image as gas guzzlers.

"SUVs are getting slowly but surely more fuel-efficient," says Karl Brauer, senior analyst for Edmunds.com, a car-shopping site. "It's just becoming easier and easier to justify buying them."

SUVs took their share gains from car sales. While pickups' percentage of total sales has remained relatively stable -- it was 13.9% last month -- cars generated 47.5% of new vehicle sales in November, down from 51.6% in November 2009.

Behind the SUV's comeback:

  • Rising gas prices not too high. Regular gas averaged $3.06 a gallon Wednesday in AAA's daily survey, up 20 cents from a month ago and 45 cents from a year ago. But it remains far from the $3.50-a-gallon level that Alec Gutierrez, Kelley Blue Book's lead valuation analyst, says it would take to start dramatically crimping SUV demand.

  • Better fuel economy. Many new SUVs no longer have heavy truck frames, but are car-based, with unibodies that integrate that frame and body. That cuts weight and raises gas mileage.

    Example: The new Ford Explorer, now a unibody crossover SUV, is rated about 5 miles per gallon better on the highway than the outgoing truck-based model.

    Crossover SUVs had half the sales share industrywide of traditional SUVs in 2002, General Motors says. Now crossovers outsell them 3-to-1.

  • Pent-up demand. Families that put off new vehicle purchases are starting to open their wallets. "Pent-up demand is slowly being released," GM's Tom Henderson says.

    For families, the rolling box is a necessity. "They have always needed 'utilities,' whether it was minivans or sport-utilities or car-based crossovers," Ford Motor sales analyst George Pipas says.

    While 2010 auto sales through November are up 11.1% vs. the same period last year, SUV and crossover sales are up 19.3%, Autodata reports. And December results may widen that.

    "Trucks and SUVs typically have stronger sales in December because of snowy and icy conditions," says Jesse Toprak, a TrueCar.com vice president.

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