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I want to pile on to the "demand is more elastic than you might think" thing:

Automotive trends traditionally don't change nearly as fast as fashions in clothing or music. But as sales of new vehicles in April dropped to their lowest level since the 1992, raw numbers also indicated US consumers were -- at warp speed -- foregoing beloved trucks and sport utility vehicles (SUVs) for mid-sized and compact cars and hybrids with better fuel economy.

http://afp.google.com/article/ALeqM5hZzXFU9nzwVVqt1xYGoJmlVIKAOA
by asdf on Mon May 5th, 2008 at 11:08:48 PM EST
Original data here.

April and year to date, annual change, seasonally NOT adjusted:




Apr 2008 Apr 2007 %Chng. 2008 CYTD 2007 CYTD %Chng.
PASSENGER CARS 658 328 622 873 5.7% 2 389 234 2 409 394 -0.8%
LIGHT TRUCKS 589 989 715 730 -17.6% 2 436 375 2 817 280 -13.5%
TOTAL LIGHT VEHICLE SALES 1 248 317 1 338 603    -6.7% 4 825 609 5 226 674 -7.7%

Seasonally adjusted, annual rates:

                TOTAL    CAR    TRUCK
Apr. '07        16.29    7.36    8.93
May  '07        16.33    8.00    8.33
Jun. '07        15.69    7.63    8.06
Jul. '07        15.28    7.19    8.09
Aug. '07        16.27    7.34    8.93
Sep. '07        16.23    7.45    8.77
Oct. '07        16.08    7.49    8.59
Nov. '07        16.18    7.95    8.23
Dec. '07        16.20    7.82    8.37
Jan. '08        15.33    7.25    8.09
Feb. '08        15.38    7.31    8.06
Mar. '08        15.11    7.51    7.61
Apr. '08        14.46    7.46    7.00


*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Tue May 6th, 2008 at 04:18:43 AM EST
[ Parent ]
So even in April, new SUV and pickup sales are still almost at the level of car sales, while until March and for the year to date, they dominate. Prices still need to rise a lot...

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Tue May 6th, 2008 at 04:22:37 AM EST
[ Parent ]

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