Detroit Gets The Fuel Efficiency Message

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