Released: May 03, 2006

Gas price dents sales of guzzlers

Source: By Sharon Silke Carty, USA Today

Ford Motor says gas prices, for the first time, are affecting sales of its F-150 pickup, the USA’s best-selling vehicle. It’s a sign gas price woes are penetrating even the most stable vehicle segments.

“In some cases, the full-size-truck buyer can sit on the sidelines and defer their purchase,” said George Pipas, Ford’s manager of sales analysis, discussing April sales results. Still, “We don’t see this buyer leaving the market.”

F-series sales were down 9.3% in April from a year ago. Sales of Ford Explorer, which has been the top-selling SUV in the country, were off a stunning 42%. In April, Explorer was outsold by the smaller Toyota RAV4 SUV.

Gas prices went up nearly 40% during April, and industrywide sales showed signs that fuel efficiency is becoming a bigger selling point than in years past. Overall sales were down 4.2%, according to sales tracker Autodata. But truck sales were off 7%, while car sales were down just 1%.

“There has been a permanent shift in consumers’ minds as far as gas prices goes,” said Jesse Toprak of car-buying site Edmunds.com. “The sustained nature of gas prices has changed how people buy.”

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