Will higher gas prices hurt SUV sales? Analyst is sounding alarm

- How this woman traveled the world – and started a $220M companyKoel Thomae says she never would have founded yoghurt company, Noosa, if she had followed a traditional career path.
Inc.
- Swiss bank gets hit with $5B penalty for tax evasion schemeA French court found Swiss bank UBS guilty of tax fraud and illegal solicitation, fining it more than $5 billion.
Newsy
- Why TVs are now so cheapWhy TVs are now so cheap
USA TODAY
How this woman traveled the world – and started a $220M company
Inc.1:37Swiss bank gets hit with $5B penalty for tax evasion scheme
Newsy0:45Why TVs are now so cheap
USA TODAY2:11Company helps small businesses compete with Amazon Prime on shipping
Fox Business3:21Streaming vs. cable: The confusing costs of cord cutting
Money Talks News3:33How an Oakland man went from drug dealer to owning a dispensary
USA TODAY1:51Remain or leave? Carmakers confront hard Brexit choices
Reuters2:15Uber vs. Lyft IPO: The race to go public
The Wall Street Journal.4:26
How one businesswoman turned her passion into big money
TODAY5:06Nike debuts Colin Kaepernick 'Icon' jersey, sells out within hours
Veuer0:52Former FDA commissioner says agency erred in allowing companies to promote opioids
CBS News1:28Michael Jackson's Neverland Ranch up for sale again
USA TODAY0:55Uber Eats partnership puts a strain on McDonald’s franchise owners
Fox Business4:39Petition calls for sale of Montana to Canada to pay $1 trillion US debt
USA TODAY0:374-day work week trial found to decrease stress but not work output
Veuer0:46How to spot and prepare for a recession
The Wall Street Journal.2:10
Has the epitaph for the sedan been written a bit too soon?
Quotes in the article
With gas prices hitting $3 in some cities across the country this week and generally rising across the country for months, a prominent automotive industry watcher is pointing to changes she says could mean a boost for the lowly passenger car and spell trouble for big trucks and SUVs.
That position is a bit of a break from some other analysts who have downplayed the potential that gas price increases could change vehicle buying habits. They note that SUVs are more fuel efficient than in the past.
Consultant Maryann Keller raises alarms in an article on social media site LinkedIn, noting that rapid gas price escalation has tempered buyer enthusiasm for large vehicles in the past. She also cites the RVI Used Vehicle Price Index, pointing out that wholesale prices of sedans are increasing while SUVs are decreasing.
Keller said gas prices are up in part because of oil production cuts in Saudi Arabia and Russia, and she noted that these increases come as the summer driving season starts.
More Money: Ford vs. Chevrolet: Here's which is bigger at the movie box office
Yet Ford recently announced a highly publicized decision to stop selling most sedan models in the U.S., and General Motors is cutting production at the Ohio plant that makes the Chevy Cruze sedan. Fiat Chrysler Automobiles had previously jettisoned the Dodge Dart and Chrysler 200 to focus more on SUVs.
GM officials and CEO Mary Barra, have, however, said that passenger cars remain an important piece of the company's portfolio.
The potential market changes are playing out as the Trump administration is backing away from higher mileage requirements, a position that has prompted outrage and warnings from some consumer and environmental groups.
Robert Weissman, president of the advocacy group Public Citizen, was particularly pointed in his comments after Ford's sedan announcement:
"Fat on profits from SUV sales in the early 2000s, the Big Three automakers drove themselves to the brink of collapse with their failure to plan for the inevitable rise in gasoline prices."
Contact Eric D. Lawrence: elawrence@freepress.com. Follow him on Twitter: @_ericdlawrence.