Everyone thinks high gas prices are what are taking pickup sales down. I'd suggest it's the housing bubble bursting that is destroying the market for trucks.
Who buys trucks? You got it - construction workers, and anyone involved in building new houses.
What's not happening anymore? You got it- new homes are not being built. And it's just gonna get worse and worse and worse, to the point that it'll be surprising to see a new home being built anywhere in the US. We have overbuilt to a point that we many not need any new houses for years.
And that means the unemployed construction workers don't need many new pickup trucks either.
DETROIT (Reuters) - U.S. auto sales have been slipping as domestic automakers have struggled to boost sales amid high gas prices this year -- a trend that will continue into next year, industry executives and analysts said
"Pickup trucks correlate historically pretty well to construction trends," Ross said. "So the problem that the home builders are having now very likely will have some impact on that area."
Slowing housing starts can mean slower pickup truck sales, since the vehicles are often driven by construction crews. The auto industry benefited in recent years from the boom in housing refinancing at lower interest rates, but U.S. sales of pickup trucks have fallen nearly 14 percent so far this year. Overall sales at U.S. automakers are down about 11 percent.
September 13, 2006
Posted by blogger at 9/13/2006