Gas prices braking guzzlers

Alicia Robinson

High gas prices have sped up sales of fuel-efficient vehicles at some

local car dealerships, while others say they haven’t seen a dent in

sales of “gas guzzler” sport-utility vehicles.

Demand for SUVs is weakening when compared with other

auto-industry segments, according to a report issued Thursday by the

Power Information Network, a consumer industry analyst.

Dealers here who have seen a dip in SUV sales in recent months

attribute it mainly to gas prices, which reached record highs this

summer.

“We’re still selling a lot but less than we should be,” said

Edward Cruz, a salesman at Connell Nissan in Costa Mesa. “SUVs have

been, I think, deteriorating within the last year.”

The analysis from the Power Information Network was based on the

increased dealer incentives for SUVs, the slower turnover rate for

SUVs on car lots and the decrease in prices of SUVs, all of which

went against the trend of the rest of the industry, said Tom Libby of

the Power Information Network.

The firm’s research showed that SUVs sat on dealer lots for 73

days before selling in July, which was 13 days longer than they took

to move in July 2003. The rest of the industry showed a 71-day

turnaround time last month.

“There appears to be a softening in that market,” Libby said. “The

reason for that is open to debate.”

Among Newport-Mesa dealers, the debate seems pretty closed.

“We’re seeing a lot of people turn SUVs in because of gas,” said

John Williford, sales manager at Lenders Hyundai on Costa Mesa’s

Harbor Boulevard of Cars.

People are trading in SUVs in favor of passenger cars and smaller,

six-cylinder SUVs that get 28 miles to the gallon, he said.

The Power Information Network report shied away from a firm

prediction that the SUV is dead, and some local dealers’ sales

justify that reluctance.

“With what we’re seeing, it’s about 55% of our new Porsche

business,” said Dan Comouche at Newport Auto Center. “[The Porsche

SUV is] a fairly new model for us, but it’s been well received.”

Sales of luxury cars have been good too, he said.

Despite people’s complaints about gas costs, the demand for SUVs

won’t fade because people still want the convenience and roominess

they offer, said Jon Gray, president of Orange Coast

Jeep/Chrysler/Dodge.

“For families, it’s still the car of choice,” he said.

However, Gray said, customers now need to be coaxed a little more

to buy the SUV rather than some of the new crossover models. He’s

recently been offering up to $4,500 in rebates on the Jeep Grand

Cherokee.