In 2011, Jennifer Nigro, a resident of Denville, New Jersey, purchased a fuel-sipping Chevrolet Malibu, motivated by gas prices that she says were "through the roof." Last November, she traded that in for an Equinox SUV, craving a roomier interior for her two children, ages 15 and 18. As gas prices began to decline, "SUVs went back onto our radar," she said. She said she feels safer in the larger vehicle and is even more "thrilled" that gas prices continue to decrease.
Nigro represents a growing trend among consumers. As the economy rebounds, gas prices fall and the fuel efficiency of larger vehicles continues to improve, more people are moving away from cars toward larger vehicles. Light trucks outsold cars last year for the first time since 2011. From January through October, cars accounted 46.6 percent of the market, while light trucks made up 53.4 percent, according to registration data by IHS Automotive.
The University of Michigan's Transportation Research Institute reported that the average fuel economy of cars purchased in December declined to 25 miles per gallon, down from an all-time high of 25.8 mph last August. Michigan researcher Michael Sivak said this turn toward SUVs and crossovers and other larger vehicles is likely due to the large decreases in the price of gasoline.
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Dealers are seeing the trend play out in their showrooms. As the economy rebounds, "people are ready to get into something new and bigger," said Judith Schumacher-Tilton, who owns Gearhart Chevrolet and Schumacher Chevrolet in New Jersey. She sees many customers trading in smaller cars for Tahoes and Suburbans.
Automakers unveiling their new vehicles at The North American International Auto Show in Detroit, which opens to the public on Saturday, are expected to mirror the shift in the public's appetite. Instead of focusing extensively on fuel economy, as they have for the past few years, this year's offerings will have a different tilt. Because of the lower gas prices, automakers will "skew things towards emphasizing performance and de-emphasizing fuel economy," said Tom Libby, an analyst with IHS Automotive. "If they have six features they can emphasize, they won't emphasize fuel economy as much as they would have six months ago."
Libby cited a dozen vehicles slated to be unveiled at the show that are either big vehicles, like the Toyota Tacoma and Nissan Titan, or performance versions of a car, among them the Lexus GS F, the Audi M6 Gran Convertible, the Cadillac CTSV, and the Mustang GT350R. Jonathan Linkov, deputy editor of autos for Consumer Reports, said, however, that unlike pre-recession shows, where power and luxury were the exclusive focus, manufactures now strive to make every one of their vehicles fuel efficient as well — even the highest-performing ones.