Eula Josephine Lagrange Larose
April 28, 2008
Adam "T-Dent" LaCoste
April 30, 2008
The higher price of gasoline and diesel is straining our love affair with large trucks and SUVs.
In 2007, more than twice as many trucks, SUVs and vans were sold at Tri-parish new vehicle dealerships than cars, but the steep rise in the price of fuel has been cutting into the sales of the gas-guzzlers because they have lower fuel efficiency, according to several new-car dealers in the Tri-parishes.
The area has 21 new car dealerships.
“In Houma and Thibodaux, everyone owns a truck and a boat,” said Lester Bimah, general manager of Barker Honda in Houma, one of only five new-car dealerships in the Tri-parishes that sold more cars than trucks in 2007. “Now, people are inquiring about smaller compacts.”
More than 5500 Chevrolet, Ford and GMC trucks and SUVs were sold at dealerships in the Tri-parishes in 2007, according to figures from the Jefferson Parish-based Motor Vehicle Registration Service of Louisiana.
Less than half that amount of Dodge, Nissan and Toyota trucks and SUVs were sold last year.
“Trucks sell more because of their flexibility,” said Dwight Lott, sales manager at Morgan City Courtesy Pontiac Buick GMC Truck, which has experienced a 40 to 50 percent drop in pickup purchases.
While the truck and SUV big sellers were made by companies based in the U.S., the top-selling passenger cars in the Tri-parish area during 2007 were all Japanese makes. Nissan, Honda and Toyota sold 1,616 cars at new vehicle dealerships last year. Chevrolet and Ford sold 745 cars combined.
With the price of diesel above $4 a gallon, full-size trucks are selling at half the rate now compared to recent years, said Rudy Arcement with Greg LeBlanc Toyota in Houma. The Toyota Tundra, a full-size pickup truck, is being walloped particularly hard. Sales of the Toyota Camry have risen.
“People are trading in diesels,” Arcement said. “Nobody wants diesel. People are losing money left and right on diesel.”
He said sales of full-size SUVs have practically stopped. Greg LeBlanc is selling only two full-size Toyota Sequoia SUVs a month. Customers are moving to the mid-size 4Runner SUV and to the Highlander, a more fuel-efficient minivan which looks like an SUV, he said.
Bob Barker with Lafourche Motor Company in Lockport said the high price of diesel is straining sales of three-quarter ton and one-ton trucks.
The dealership’s most popular truck is the Ford F-150, which has been one of the best-selling trucks in the U.S. for decades.
“That’s a no-brainer – customers are asking for more fuel efficiency,” Barker said. “It’s been that way for the past couple of months.”
He said diesel’s fuel economy is comparable to gasoline, but diesel engines cost $7,000 more than gasoline engines.
The dealership is stocking up on the smaller makes Ford Focuses, Ford Fusions and Mercury Milans.
The top-selling passenger cars last year from Lafourche Parish new car dealers were Hyundais, Chevrolets and Pontiacs, but Terrebonne Parish dealerships sold the most cars by far in the Tri-parishes, with Nissans, Hondas and Toyotas leading the pack. The top-selling cars in St. Mary Parish were Dodges, Chevrolets and Fords.
To save fuel, customers are increasingly seeking to purchase hybrid vehicles, which are powered by a combination of gasoline and electricity but cost more than vehicles running only on gasoline.
The Toyota Prius hybrid is a hot seller at Greg LeBlanc Toyota and the hybrid Honda Civics are in demand at Barker Honda.
“People are still learning about hybrids,” said Bimah. “People still are a little skeptical about them.”
Vehicles having Active Fuel Management are gaining interest too. Active Fuel Management is a feature in some General Motors cars, which stops the action of half the cylinders in the engine when the vehicle has no need for them, adding to fuel economy.
Ty-Cye Adams, general manager at Barker Buick Pontiac GMC in Houma, said customers are also increasingly purchasing “crossovers,” vehicles that combine elements of SUVs and passenger cars.
“Crossovers are our fastest-growing market sector,” Adams said. “People who had mid-size SUVs are now buying crossovers.”
The vehicles have the same room inside as an SUV but are smaller outside, he said.
Though Barker’s best-selling vehicle in the truck and SUV class is still the full-size GMC Sierra pickup, the GMC Acadia crossover is the second top seller.
Adams said truck sales have been down 10 percent this month and SUV sales are 30 percent lower.
The Barker dealership offers the GMC Yukon hybrid as well.
“The cars on our lot get better fuel economy because of technology,” he said. “Cars from 2001 and 2002 don’t have as good fuel mileage.”
“The emphasis before with customers was that they bought whatever they wanted,” Adams said. “Now they know the model they want, then they ask about fuel economy. Six months ago, they didn’t even ask.”
Rodney Reece of Trapp Chevrolet in Houma shows a vehicle to Jeremy Allemond Monday morning. According to salesmen across the region, many potential car buyers are steering clear of SUVs and pickup trucks. * Photo by SOPHIA RUFFIN
