GM SUV Sales Up!

As Bernie Schaeffer has pointed out in today's commentary, what everyone "knows" may be wildly off base. Didn't we think that Japanese cars were hurting America's SUV sales?

"Even as gas prices approach $3 a gallon, sales of GM's new SUV's are up 22% in the first quarter. What's more, J.D. Powers & Associates, Inc. says buyers are paying up to $7,000 more for the new Tahoes ($32,000 base) and Cadillac Escalades ($57,000) than they shelled out for the old models .... Trucks such as the Escalade, Tahoe and GMC Yukon not only have plush cabins, but they boost fuel economy close to 20 mpg, thanks to a system that shuts down four of the engine's eight cylinders while cruising. That beats all competitors (the Toyota Sequoia gets 16 mpg) and matches some midsize SUV's. As a result, GM's large SUV's are stealing buyers from other auto makers."
---(BusinessWeek - "General Motors is Still Living Large" - May 8, 2006 issue)

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