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Written by Pinky Bean

Americans aren't showing as much love to the SUV as they once did

Posted by Pinky Bean on April 28, 2008 9:09 AM Filed Under: Transportation

Rising fuel prices may be a pain at the pump, but are they doing some good for the environment? It seems that since it became necessary to refinance your home just to afford a tank full of guel, people trading in their gas-guzzling SUVs and trucks for smaller, more fuel-efficient vehicles. The last time oil skyrocketed like this was in 1980 and the American auto market was caught unprepared with few fuel-efficient vehicles, which paved the way for overseas manufacturers to weasle their way into the market. American companies recovered in the 1990s and capitalized on affordable fuel by churning out big trucks, minivans and SUVs, but with the cost of oil ready to hit the fan once again, manufacturers are struggling to keep up this time around.

SUV sales are already down significantly this year while the demand for smaller vehicles rises, however they were already taking a hit on the market each year since their sales peaked in 2003. Unfortunately for SUV owners, dealers aren't exactly lining up around the block to unload the large vehicles off of owner's hands; in fact some won't accept SUVs period because people are no longer buying them.

Instead buyers are gravitating toward smaller cars and smaller engines, with 38 per cent buying four-cylinder engines in the first quarter this year, a change from the popularity of the six-cylinder engines which have typically dominated the market.

Fuel prices aren't the only factor being considered as buyers contemplate their next vehicle. Ford sales analyst George Pipa says now that baby-boomers are also watching many of their own offspring start to drive, they're downgrading in size and their kids are following suit, with over half of new drivers expected to choose a small car as their first vehicle.

“Gas prices are important because they’ve accelerated these shifts, but the shifts were going to happen anyway,” Pipas said. “SUVs were not going to roam the Earth in this decade as they did in the 90s.”

» MSNBC Environment

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