As gas prices continue to rise and society struggles to keep its head above water, we see more and more Americans trading in their gas-guzzling full-size SUVs for smaller, more efficient vehicles. While it is a form of escape and survival for some people, we are now seeing the economic reaction to this trend.
Since there’s no real demand for the truck and SUV right now, consumers aren’t getting as much money for their trade-ins. So what you once thought of as an ego-boosting investment has recently been seen as a financial curse that cheats you out of a lot of money when you trade it or when you fill it up.
Another repercussion of all this is the millions of dollars American automakers are losing. Companies are being forced to halt production of SUVs and have even led to the closure of entire plants. GM Chief Executive Rick Wagoner said GM will cease production at four North American assembly plants that make SUVs and trucks by 2010.
To show you how real this situation is in the economy, the Honda Civic and Toyota Corolla ranked as the top two best-selling vehicles in the United States in May. This is a big difference from the top 2 selling vehicles, the Ford F-150 and Chevy Silverado in 2005.
For many, this is a devastating situation that begs the question: “Will this be the end of the SUV era?” If so, we must not only look at the negative side of this, but see how there could be any good in all of this.
For one, SUVs take up a lot of space on the road, prompting the government to widen lanes and businesses to expand parking. Do you remember when the tour first came out? It was unbelievably big, and certain places didn’t even have parking for them. So they’d just plow their way into 2 places and be like, “Okay, I’ve got a big SUV.”
Also, it would be better for the environment if people drove Honda Civics instead of H3s. If they are completely cutting SUV production in the next few years, there has to be a substantial difference in the amount of pollution that is distributed.
The conclusion is the following. We are Americans and we think we can have everything and anything. Some probably can, but at some point we had to humble ourselves and realize that it’s not just about our big cars and fancy trucks. The rest of the world has been saving gas and energy for decades and now is the time to change our lifestyle to suit our current reality. We will see the end of this crisis and, like the Americans, we will survive!