DETROIT - Automakers got hit where it hurts in February, with U.S. sales of their most profitable vehicles — trucks, sport utilities and large sedans — plunging as consumers reacted to high gas prices and the possible recession. General Motors and Ford announced second-quarter production cuts in the face of falling U.S. sales.
General Motors reported a sales decline of almost 13 percent while Ford's sales slumped 7 percent, Chrysler's tumbled 8 percent and Toyota's fell 3 percent. It was expected to be a difficult month for automakers as consumer confidence continued its slide. Declines in home construction have also significantly weakened truck sales.
GM said its sales decline was led by a 19 percent drop in sales of trucks and SUVs. Sales of Chevrolet full-size pickups were down 29 percent for the month. Large sedans didn't fare much better; sales of the full-size Buick Lucerne were down 26 percent. GM's sales dropped 6 percent in the first two months of the year.
Detroit's Big Three has been pushing too many gas-guzzling trucks and SUVs on the American consumer. Those big trucks and SUVs represent fat profits for Detroit automakers. The problem for GM, Ford, and Chrysler is that when they were raking in the big profits on their fuel-inefficient vehicles, they were ignoring the need for investing in new gas-saving vehicles, and hybrid technology. And just like during the 1970s Arab Oil Embargo, American consumers today are dumping their gas-guzzling vehicles for the Japanese hybrids. And Detroit is playing catch-up again.
Déjà vu.
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