NEWSWEEK: 56 Percent of Americans Refuse to Downsize Vehicles Despite High Gas Prices. 'We Haven't Turned Into Wimps Overnight,' Says Car Industry Consultant

SUVs Still One-In-Four New Vehicles Sold In America; Carmakers Introducing More Fuel-Efficient Models

NEW YORK, Oct. 2 -- Despite pain at the pump, 56 percent of Americans refuse to downsize and will stick with the wheels they've got, according to a new survey by consultant AutoPacific. "We haven't turned into wimps overnight," AutoPacific's George Peterson tells Newsweek in the October 10 issue (on newsstands Monday, October 3). "People still like a tough looking SUV."

With gas at $3 a gallon, hybrid sales have soared while behemoths like the Chevy Suburban have dropped dramatically, reports Detroit Bureau Chief Keith Naughton. But hybrids represent just 1.3 percent of the U.S. auto market. The real action remains in SUVs, which still account for one-in-four new vehicles sold in America.

What has changed is that Americans are downsizing from XL models to more modest SUVs, like the H3 and "crossovers" built on smooth-riding car chassis. Chrysler is doubling its SUV offerings over the next three years, including the radical Dodge Nitro model coming next year with flared fenders and fuel- friendly V6. GM is counting on a new crop of full-bodied SUVs coming next year to drive its comeback.

By 2010, the number of SUVs on the market will increase 27 percent to 109 models, while just 44 different hybrids will be offered by then, according to auto researcher J.D. Power. By the end of this decade, J.D. Power predicts hybrids will account for less than 4 percent of total auto sales. SUVs, meanwhile, will grow from 24.6 percent to 26.6 percent. "For hybrids to have a double digit market share," says J.D. Power's Jeff Schuster, "we'd essentially have to run out of fossil fuel."

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