Power Information Network Reports: Sales of Large Pickups and SUV Models Revive as Gas Prices Drop
WESTLAKE VILLAGE, Calif., Oct. 18, 2006 -- The recent decline in gas prices has brought an increase in owner loyalty rates for pickup trucks and SUVS, which had been adversely impacted by higher fuel prices earlier in the year, according to real-time retail transaction data from the Power Information Network (PIN), a division of J.D. Power and Associates. To better reflect consumer demand for new vehicles, PIN data includes retail transactions only and does not include fleet sales.
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Owner retention rates for the large pickup, large utility and midsize utility segments have all risen in the seven-week period from mid-August to early October -- the time period during which gas prices steadily dropped and averaged $2.66 per gallon -- when compared to the prior seven weeks, when gas prices averaged $3.04 per gallon. Owner retention is measured by the percent of owners in any given category who trade for another vehicle in the same category.
PIN data shows that at the model level, four of six high-volume large pickup models, four of five large utilities and seven midsize utilities all have experienced increases in owner retention during the same time period (mid-August to early October).
List of Vehicles included in the Large Pickup,
Large Utility and Midsize Utility Segments
(in alphabetical order)
Large Pickup Segment
Chevrolet Avalanche
Chevrolet Silverado Pickup
Dodge Ram Pickup
Ford F-Series
GMC Sierra Pickup
Toyota Tundra
Large Utility Segment
Chevrolet Suburban
Chevrolet Tahoe
Ford Expedition
GMC Yukon/Yukon Denali
GMC Yukon XL/Yukon XL Denali
Midsize Utility Segment
Chevrolet Trailblazer / EXT
Dodge Durango
Ford Explorer
Honda Pilot
Jeep Grand Cherokee
Nissan Pathfinder
Toyota 4Runner
*Chart includes a selection of high-volume
models from each segment.
"It's early, but this data suggests there still is life in these segments," said Tom Libby, senior director of industry analysis at PIN. "These segments are important because they include many high-volume, high-profit models. These findings are also relevant because Ford, General Motors and Toyota all have new products coming in these segments."
The large pickup, large utility and midsize utility segments account for almost one-quarter of new-vehicle sales -- a combined 23.5 percent year to date through September. They also include some of the most profitable models in the industry, such as the Chevrolet Suburban, Ford Expedition, Jeep Grand Cherokee and Toyota 4Runner.
"The effect of rising gasoline prices on sales mix and retention rates has been evident for some time now," said Bob Schnorbus, chief economist at J.D. Power and Associates. "It will be interesting to see if falling gasoline prices will have a completely opposite effect on the market, especially if prices remain above $2 per gallon. Most likely, consumers have fundamentally changed their perception of the importance of fuel prices in their purchasing decisions and will continue to shy away from larger vehicles."
About Power Information Network (PIN)
PIN's automotive solutions are based on the collection and analysis of daily new- and used-vehicle retail transaction information from more than 10,000 automotive dealership franchises in North America. PIN's industry-leading automotive solutions incorporate consumer demand and sales information to improve business for automotive dealers, manufacturers, lenders, and other companies in the industry. Additional information is available at www.powerinfonet.com
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 290 offices in 38 countries. Sales in 2005 were $6.0 billion. Additional information is available at http://www.mcgraw-hill.com/.
J.D. Power and Associates Media Relations Contacts: John Tews Syvetril Perryman Troy, Mich. Westlake Village, Calif. (248) 312-4119 (805) 418-8103 john.tews@jdpa.com syvetril.perryman@jdpa.com
No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate
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