Larger Vehicles Drive New Car Sales Despite Increasing Gas Prices, AAA Says

    WASHINGTON--March 26, 2002--With the economy beginning to show signs of recovery in many parts of the country, AAA is projecting that Americans will continue to buy SUVs, trucks and minivans despite increasing gas prices nationwide.
    Whether domestic or imported, these larger vehicles will continue to be best-sellers, according to AAA. More than half of the vehicles sold by General Motors last year were in this category, and they accounted for more than two-thirds of Ford's and Chrysler's sales as well. AAA says there is no indication that will change in the upcoming year.
    "Since automakers derive huge profits from sales of larger vehicles, such as SUVs and minivans, expect some very aggressive selling strategies for them, including rebates and cut-rate financing," said Dave Van Sickle, AAA's director of automotive and consumer information, and editor of AAA Auto Guide: 2002 New Cars and Trucks, an annual review of more than 200 vehicles.
    "New vehicle sales could reach last year's volume of 17.1 million units," Van Sickle added. "Many thought strong incentives in the fourth quarter of 2001 would steal sales from 2002, but that hasn't been the case."
    Unfortunately, not all automakers will share alike in auto industry prosperity.
    "Don't expect import dealers to drastically cut prices," said Van Sickle. "Hot-selling imports like the Honda Accord and Toyota Camry will see little discounting, while mainstream cars from the big three automakers will continue to be the most competitively priced."
    New, trendy products like the Ford Thunderbird, Lexus SC 430, or Mercedes SL500 will be in short supply and will command premium prices, AAA says. More mature products like the Ford Taurus, Chevrolet Impala or Dodge Intrepid aren't generating as much excitement in the marketplace, so dealers will have to move them aggressively. Premium imported sedans are popular in spite of their premium prices.
    "Cars from Audi, BMW, Mercedes, Lexus and Volvo remain highly desirable," Van Sickle warned, "so expect firm prices in the showrooms."
    Safety is more important than ever to buyers, according to AAA, making vehicles with good crash ratings and a full line of safety features popular with families. AAA Auto Guide: 2002 New Cars and Trucks details each vehicle's safety features and includes NHTSA crash test ratings for each vehicle reviewed.
    Buyers shopping for safety should look for 2002 models with a good selection of important features such as lap and shoulder belts in all seating positions, antilock brakes, stability control, integrated child safety seats and side airbags, says AAA.
    Eventually, consumers can expect to see the migration of technology from high-end cars down to mainstream vehicles, according to Van Sickle.
    "Stability control and smarter navigation systems are already broadly available," Van Sickle said. "Continuously variable transmissions that offer shiftless automatic operation and improved fuel economy are available on Audis, Hondas, and even new Saturns.
    "Hybrid powertrains - engines that combine the best features of both gas-powered and electric motors - are currently available from Honda and Toyota. Expect to see more of this environmentally friendly technology from the big three in a year or so," Van Sickle said.
    AAA Auto Guides: 2002 New Cars and Trucks features ratings on vehicles ranging from sports cars to minivans, with every one test-driven and evaluated by AAA's team of expert reviewers. The book is available at AAA offices, online at www.aaa.com and through most retail bookstores.
    As North America's largest motoring and leisure travel organization, AAA provides its members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers.

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