Detroit Gets The Fuel Efficiency Message

Detroit has seen their sales drop while foreign manufacturers of more fuel efficient vehicles continue to see sales surge.

2 minute read

August 30, 2006, 7:00 AM PDT

By Irvin Dawid


Thomas W. LaSorda, Chrysler’s chief executive, has stated that he expects gas prices to remain high through the decade. This is significant because Detroit has based their profits on SUV sales that may correspond to cheaper fuel.

"About 75 percent of the vehicles that Chrysler sells are pickups, sport utility vehicles and minivans, compared with about two-thirds of the sales by the Ford Motor Company and about 60 percent of the vehicles sold by General Motors, according to the industry statistics firm Autodata.

By contrast, the lineups at Toyota, Honda and Nissan are still more than 50 percent cars, one reason Japanese auto companies have achieved sales records this year."

Indeed, light truck sales industry-wide are on the decline, while car sales increase to reflect the higher fuel prices.

"Last month, Chrysler’s share of the American market dropped to just 10 percent, compared with 13.3 percent in July 2005. Chrysler fell to fifth place in July, behind G.M., Toyota, Ford and Honda.

Chrysler is not the only company feeling the pinch of higher gasoline prices. Industrywide, pickup truck sales have dropped about 17 percent this year, while sales of sport utility vehicles are down about 9 percent. Car sales, by contrast, are up 3 percent, according to an Edmunds estimate."

LaSorda's comments, as well as Ford’s chief sales analyst, George Pipas, "signal a recognition that the two automakers may have to fundamentally change their product mix to put more emphasis on fuel-efficient vehicles â€" a move General Motors says it already is making."

Thanks to Mark Boshnack

Monday, August 28, 2006 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight