Copycat Crisisby Tim Manni
Just as the mortgage crisis has depleted home sales and deflated resale values to record lows, high and ever increasing gas prices have done to the same to the value of SUVs. Their lack of fuel efficiency has proven them undesirable, dropping the number of new and used SUVs for sale nationwide. A three-year-old SUV is worth $2,000-3,000 less than a year ago. Nearly 36% of people who tried to trade in a large SUV in May owed more than what the vehicle was worth.
The auto industry has seen sales of SUVs and trucks plummet, as drivers are turning to smaller vehicles with better gas mileage. Last week General Motors announced they will be closing four North American plants that produce large trucks and SUVs. GM also announced they will increase car production to 60% up from 50%, and had approved production funding for the Volt, a much anticipated hybrid-electric car.