SUV Sales Plummet in September Amid Gas Price Spikes and Employee Discount Backlash

Strategic Insights -

Automotive sales declined significantly in September, with U.S. manufacturers experiencing a substantial hit in the sport utility vehicle (SUV) segment. The industry-wide slump was attributed to a combination of factors, including the aftermath of Hurricane Katrina, which led to a surge in gas prices. Additionally, the summer's employee-pricing discounts had a lasting impact on sales, particularly for U.S. automakers.

Key Takeaways:

  • General Motors Corp.'s overall sales declined by 24 percent in September, with SUV and truck sales falling 30 percent and car sales dropping 14 percent.
  • Ford Motor Co. reported a 20 percent decline in sales, with a 28 percent drop in truck and SUV sales, while car sales rose 6 percent.
  • The Dodge Ram pickup had its best month ever, with sales up 5 percent, while Toyota's Tacoma pickup saw a 21 percent increase in sales.
  • Chrysler bucked the trend, reporting a 4 percent increase in September sales, led by a 26 percent jump in car sales.
  • Asian automakers, such as Toyota, Nissan, and Honda, experienced less pain, with sales increases ranging from 10 to 21.4 percent.
  • Strong pickup sales indicated that gas prices may not be the sole factor contributing to the decline in SUV sales.

Statistics:

  • General Motors Corp.'s SUV and truck sales fell by 30 percent in September.
  • Ford Motor Co.'s truck and SUV sales declined by nearly 28 percent.
  • The Dodge Ram pickup had a 5 percent increase in sales in September.
  • Toyota's Tacoma pickup saw a 21 percent increase in sales.
  • Chrysler's car sales increased by 26 percent in September.
  • Chrysler's overall sales rose 7.5 percent for the year.
  • Toyota Motor Corp.'s sales increased 10 percent in September.
  • Nissan Motor Co.'s sales rose by 16.4 percent, led by a 26.5 percent increase in car sales.
  • Honda Motor Co.'s sales increased by 11.7 percent.

Sources:

  • Dee-Ann Durbin The Associated Press
  • U.S. automakers' sales reports for September 2005
  • Asian automakers' sales reports for September 2005