Power Information Network (PIN), a subsidiary of JD Power and Associates, earlier announced its analysis of real-time retail transaction data regarding declining gas prices. Said company highlighted that as a result of the fall, an increase in the fidelity indexes of the owners of trucks and sports utility vehicles is observed.
PIN previously reported that skyrocketing fuel prices in recent months have negatively impacted truck and SUV loyalty rates. PIN noted that retention rates for owners of large pickup trucks, large utility vehicles and medium utility vehicles increased significantly in the seven-week period from mid-August to early October of this year. That increase was attributed to the same period that gasoline prices fell steadily and averaged $2.66 per gallon compared to seven weeks when gasoline prices averaged $3.04.
According to data compiled by the company, four of the six full-size truck models, four of the five large utility vehicles and seven of the seven midsize utility vehicles saw increases in owner retention from mid-August to early October. The company measured owner retention by the percentage of owners in any specific category who trade for another vehicle in a similar category.
“It’s early days, but this data suggests there is still life in these segments,” says Tom Libby, senior director of industry analysis at PIN. “These segments are important because they include many high-volume, high-profit models. These findings are also relevant because Ford, General Motors, and Toyota all have new products in these segments.
The surge in full-size truck and SUV sales is expected to overwhelm automakers that rely on those segments. In fact, these segments account for nearly a quarter of new vehicle sales. Some of the vehicles in these segments that are predicted to be successful in the market include the Chevrolet Suburban, Ford Expedition, Jeep Grand Cherokee and Toyota 4Runner.
Chevrolet Suburban is a large SUV, which was produced in the year 1935. It uses high-performance Chevrolet auto parts to produce exciting performance. In fact, it is famous as a police car, EMS flying car or fire chief’s vehicle. Ford Expedition is a full-size SUV. Next year it will be redesigned using the T1 platform. Jeep Grand Cherokee is a midsize SUV that uses quality Jeep parts to increase power and appeal. Toyota RAV4, on the other hand, is a compact crossover SUV, which was restyled for the 2006 model year.