SUVs, trucks Dealers Facing Tight Supply

If you've got your eye on a new SUV, don't blink.It might be gone.

Even with the auto industry mired in depression – sales are down nationally 36.5 percent – big vehicles such as the Ford Expedition and Chevy Tahoe are in tight supply because of drastic production cuts that automakers imposed last year as sales began to plummet.

Now, a year after $4-a-gallon gas nearly killed SUVs, some dealers in this market are selling them for window-sticker prices. Moreover, most late-model used pickups and SUVs have regained all of the thousands of dollars in trade-in value they lost last summer, dealers say.

Dealers love for demand to exceed supply, but many are concerned that they could run short of profitable trucks if the economy improves in the second half of the year. Their supply of cars – particularly compacts – remains high, they say.

"When you go through the inventory, you find we've got an 18-day supply of Expedition ELs," said Sam Pack, who owns Five Star Ford in North Richland Hills, Sam Pack's Five Star Ford in Carrollton and Ford Country in Lewisville. "That's too low. It starts costing you sales."

"We're very short of Expeditions and [Lincoln] Navigators," said Randall Reed, owner of Prestige Ford-Lincoln-Mercury in Garland and Park Cities Ford-Lincoln-Mercury in Dallas. "We have been selling record numbers of [crossover] Flexes because of it, I think."

Some full-size pickups such as the Toyota Tundra are also hard to get. Truck and SUV production was initially slashed last summer when fuel prices began to skyrocket. As the economy continued to crumble, it was cut further.

The General Motors Assembly Plant in Arlington, for example – GM's only factory building full-size SUVs – is in the midst of a two-month shutdown. Last month, overall car and truck production in North America was 45.1 percent lower than in May 2008, according to Automotive News.

Changing times

Tight supplies could become the norm, some dealers say. GM and Chrysler LLC, which are in bankruptcy, have dramatically reduced production – as has Ford Motor Co.

With fewer factories, the domestic automakers may struggle to meet demand for some vehicles when the economy improves. And they may not view it as such a bad problem.

"GM wants them to come in and immediately hit the streets," said Tom Durant, who owns Classic Chevrolet in Grapevine, the largest Chevy dealership in the nation. "Prices will be firmer, and margins will be better. They don't want a bunch of vehicles that we have to keep on the lot for several weeks."

Drew Campbell, president of the New Car Dealers Association of Metropolitan Dallas, added: "It's a lot drier out there than people realize."

For example, the back three rows at Five Star Ford in Carrollton – the store's SUV sector – were empty recently because the dealership had sold all of its Expeditions and Explorers, said Brian Huth, general manager of the dealership.

"I told my guys it looked like we were going out of business," Huth said. "But I think dealers are going to have to learn to sell with less inventory on the lot."

Since then, he and his staff have hustled to buy more new and late-model SUVs from other dealers and at auctions. The dealership – which sold 176 cars and trucks last month – is contending as well with occasional shortages of compact Escape SUVs and a fairly tight supply of full-size F-150 pickups.

'Pretty tight'

Much of the shortage in Expeditions is related to Ford's decision to move production from Michigan to a truck factory in Kentucky, which took about three months, said Doug Scott, Ford's truck marketing manager. Although production has resumed, supplies remain limited because Expedition sales have been 20 percent higher than Ford had forecast.

"We knew we were going to run short," Scott said. "With what we were going through last year, we were scaling back production right up to the end of the year. Then we moved production of the Expedition."

Meanwhile, at Toyota of Richardson, Steve Grogean grapples with a limited supply of Tundra pickups and Sequoia SUVs. He thinks Toyota simply overreacted when sales began dropping by amounts the company had never seen before. Toyota recently announced that it's restoring some of its truck production.

"If business picks up as it usually does in the summer, things could get pretty tight in the next 45 to 60 days," said Grogean, vice president and general manager of the dealership.

For the past year, dealers accustomed to having one of everything on the lot have learned to function on smaller inventories, noted Paul Taylor, chief economist at the National Automobile Dealers Association.

"But when the market comes back, inventories will increase to a 60-day supply," he said.

Veteran dealer Ron Kutz isn't so sure. He thinks tighter inventories are probably good for the auto industry.

"In the '80s, we ran a Nissan store off a 30-day supply of vehicles," said Kutz, general manager of Grapevine Dodge-Chrysler-Jeep. "There's no way GM or Chrysler should have 120-day supplies. It just makes no sense financially."

CAR, TRUCK PRODUCTION

Production in North America through June 13, compared with the same period last year:

Cars

1,509,084
-49.4%

Trucks

1,745,752
-50.9%

Total

3,254,836
-50.2%

Cash for Clunkers: Eligible Used Cars List Under $3,500

As Congress debates cash-for-clunkers legislation, we reviewed our data to determine what worn out old cars make the most sense to junk and what qualifying cars we think would make better replacements—featured in another post.

The used cars we’ve listed are the newest vehicles likely to be available for less than $3,500, the minimum voucher value. For this to be worthwhile to the consumer, the vehicle’s trade-in value would need to be less than the voucher. Older versions of these vehicles are likely to be worth less, making the vouchers even more appealing. Many of the models have mechanical twins sold by another brand that may qualify, but we have not listed them here.

Keep in mind that spending money on a new car can buy you more than just improved fuel economy. A new car will have a warranty to cover repairs. And a decade (or more) of improvement in safety and reliability.

The past 10 years have brought big gains in safety engineering and technology, including better structure to cushion the impact while maintaining the integrity of the occupant space and safety features such as front-side and curtain air bags and electronic stability control (ESC). In particular, many older SUVs have a higher inherent risk of rollover than newer car-based designs with ESC.

In addition to casting the spotlight on eligible clunkers, we will soon present a list of Consumer Reports recommended vehicles that could serve as a replacement. To see a complete list of Consumer Reports recommended models check out our ratings, available to online subscribers.

Make	Model	Older than model year	EPA combined mpg	Category
Cadillac	DeVille	1994	17	Car
Cadillac	Eldorado	1994	17	Car
Cadillac	Seville	1993	17	Car
Jaguar	XJ6	1996	18	Car
Lincoln	Continental	1999	18	Car
Lincoln	LS V8	2001	17	Car
Lincoln	Town Car	1996	18	Car
Mercury	Grand Marquis	1998	18	Car
Oldsmobile	Aurora	1998	18	Car
Pontiac	Firebird	1992	18	Car
Chevrolet	Astro	2000	16	Truck
Chevrolet	Blazer 2dr 4WD	1995	16	Truck
Chevrolet	Blazer 4dr 4WD	1999	16	Truck
Chevrolet	S10 4WD	1997	16	Truck
Chevrolet	Silverado 4WD	1998	16	Truck
Dodge	Dakota	2001	14	Truck
Dodge	Durango	1998	13	Truck
Dodge	Ram 4WD	1994	12	Truck
Dodge	Grand Caravan	2000	18	Truck
Ford	Aerostar	1996	17	Truck
Ford	F150 V8 4WD	1995	14	Truck
Ford	Expedition 4WD	2000	17	Truck
Ford	Explorer 4WD	1999	15	Truck
Ford	Windstar	2001	18	Truck
Isuzu	Rodeo 4WD	1996	15	Truck
Jeep	Grand Cherokee V8	1997	14	Truck
Jeep	Wrangler	1995	16	Truck
Kia	Sedona	2002	16	Truck
Mitsubishi	Montero Sport 4WD	2001	17	Truck
Nissan	Pathfinder	1998	15	Truck
Nissan	Quest	1999	18	Truck
Toyota	4Runner 4WD	1992	13	Truck

(Via consumerreports.org.)

2009 Mercury Mariner: More Power,Better Fuel Economy

For 2009 Mercury’s Mariner receives considerable improvements, making it one of the more desirable SUVs in its segment.

A new powertrain lineup, with a more powerful and fuel-efficient 2.5-liter I-4 engine and a new six-speed automatic transmission, leads the list of enhancements for 2009.

While I prefer the V-6-powered Mariner over the whiny four-cylinder model, Mariner’s new six-speed automatic transmission, refined aerodynamics and low-rolling-resistance Michelin tires help improve fuel economy while contributing to a quieter cabin.

Slip inside Mariner’s inviting interior and you’ll be delighted with its comfortable and spacious cabin.

Aside from a small amount of cheap-looking plastic on the dashboard and doors, Mariner’s cabin features seats that are luxurious and extremely comfortable. My only complaint is that the rear seats feature headrests that obstruct rear visibility, and the headrests must be removed before the rear seatbacks can be folded down.

Other than that, Mariner’s versatile cabin offers much to like. I especially enjoyed the optional navigation radio with traffic information and newly available SYNC system. SYNC links your Bluetooth phone to the vehicle, and it’s by far the best system out there.

If you’re unfamiliar with everything SYNC can do, you owe it to yourself to stop by your local Ford or Mercury dealership for a proper demonstration.



I also liked the available ambient lighting system that allows drivers to select one of seven different cool colors for the floor, cup holders and underneath the center pod area. It would be even better if the dashboard lighting could be changed, too.

Powering the Mariner is either a 2.5-liter I-4 or 3.0-liter V-6 engine. The four-cylinder makes 171-horsepower, but I found it a tad too noisy for my liking.




I’d recommend the V-6. It delivers an impressive 240 horsepower and offers remarkable fuel economy, even as a four-wheel-drive model. My 2009 Mercury Mariner Premier V-6 4WD tester (rated at 17/24) delivered almost 25 mpg while driving across town on Interstate 294.

I also like Mariner’s new capless refueling. There’s no gas cap. It’s just like NASCAR. The fuel fill neck has a valve that is automatically opened when you insert the fuel nozzle. Anyone who’s ever lost a gas cap or didn’t get it tightened properly will appreciate that.



The 2009 Mercury Mariner’s ride is much more refined than previous models. It doesn’t rival the ride provided by larger SUVs, but still, I was impressed.

The ride is smooth, confident, and pleasing. The electric-assist steering system, though, provides a bit too much assist for my liking. A little less assist would be favored by me. I also would like it if Mariner, like other SUVs, featured rear disc brakes instead of drum type.

Still, anyone shopping for a compact SUV should take Mariner for a ride. I think you’ll be surprised with how likable it is and how well it compares to the competition.

+ 2010 Mercury Milan Hybrid Road Test
+ 2009 Ford Fusion,Mercury Hybrid Versions Go 47 MPH on Electric Power Alone
+ 2008 Mercury Mariner Hybrid Coverage
+ 2010 Ford Escape,Mercury Mariner Get More Safety

2009 MERCURY MARINER PREMIER 4WD

ENGINE: 240-horsepower 3.0-liter V-6

TRANSMISSION: six-speed automatic

DRIVETRAIN: four-wheel drive

ECONOMY: 17 city/24 highway

BASE PRICE: $26,790

AS TESTED: $32,400 (including $695 for destination)
Gallery: 2009 Mercury Mariner Hybrid

2009 Mercedes-Benz G550 Luxury SUV Road Test

More power won’t help the iconoclastic off-roader fit into any categories, but it does make it even more fun.Who says prestige vehicles have to be modern, luxury vehicles have to be refined, or off-road vehicles have to be slow? To those people, the Mercedes-Benz G550 wags a finger and thick coat of mud and ambles off to hurdle the nearest Jersey barrier.

The anachronous G-class—or Geländewagen to purists—was introduced 30 years ago as a go-anywhere off-road military vehicle and today rides on essentially the same frame as the original, with the same suspension layout and nearly identical styling. It does, however, benefit from the accumulation of three decades of incremental improvements in two areas: luxury and power.

For luxury, the G550 comes standard with everything. No options list exists. Standard equipment includes a sunroof; a windshield with embedded heating elements à la Land Rover; Mercedes’ COMAND navigation system with Bluetooth, Sirius radio, and iPod connectivity; 10-way power and heated front seats; heated rear seats; and a rear-view camera, among a host of other goodies.

Power Proportionate to Its Boxiness

As for the major 2009 upgrade, the G550 is now equipped with the automaker’s ubiquitous 5.5-liter V-8. Sporting the same 382 hp and 391 lb-ft of torque as in its other applications and growling through an exhaust system that dumps out right in front of each rear wheel, the aluminum lump whips this 5700-pound packing crate to 60 mph in 5.9 seconds and through the quarter-mile in 14.5 at 94 mph. For something shaped like a brick and weighing nearly three tons, that’s world-class.

Floor it from a stop, and the G-wagen’s front tires squawk for a second as the towering lunchbox squats on its rear rubber. A standard seven-speed automatic is a good thing, as the G’s off-road-centric 4.38:1 axle ratio means it is already in third gear by 60 mph and shifts into fourth at 75, at which point three gears remain to get it to its governed 133-mph top speed.



The acceleration may be thoroughly modern, but the chassis is quite obviously not. Crank the wheel, and the G550 teeters like a drunken co-ed; catch a midcorner bump, and the body feints toward rollover. Although we never tipped the G, we did manage a paltry 0.63 g on the skidpad. For reference, we recorded 0.61 g in a GMC TopKick, an 11,000-pound commercial truck that towers nearly eight feet tall. To approximate the constant rolling and pitching of the G550, put on a helmet with a telephone pole sprouting from the top, and go outside on a windy day.

It’s 30 Years Old. What Did You Expect?

There are a few other age spots, too. The controls for the air-bladder seat adjustments look and feel like they came out of a two-generations-old Korean parody of a luxury car. The stubby dash puts the seating position so close to the windshield that, if the prospect of licking the suction cups on your radar detector grosses you out, you can simply lean forward and lick the windshield instead.



Solid axles front and rear are so 1974, but the three locking differentials (front, rear, and center) give this brute enough traction to drive to the moon. Sadly, our observed fuel economy of 13 mpg will limit the range to just midway through Earth’s ionosphere. Better stick to terrestrial travels, for which roads are strictly optional.

Honesty: Still the Best Policy

Despite its obvious age and idiosyncrasies, there’s a charming honesty to the G550. Its doors are emblematic of the vehicle. The panel gaps are so large you can actually see the latch between the door and body shell, but the doors are so heavy and solid that slamming them sounds like a bank vault closing. The locks are the old plunger type, virtually extinct today in cars costing over $15,000, but they’re so metal-intensive that the quartet locking or unlocking together sounds like the members of a firing squad simultaneously cocking their rifles. It’s a feeling of old design and engineering assembled with unrivaled quality and substance: history’s most perfectly carved and polished stone wheel.



Marketing spin has been used to sell vehicles ever since Cugnot’s steam-powered tricycle failed to take off on its own merits. Today, a select few refreshingly forthright vehicles still sell to the hard-core elite based on nothing more than exactly what they are. The Mercedes-Benz G-class is a pointy-bearded, leather-clad biker manifested as a luxurious off-road box, a nonconformist not so much marching as it is stomping to the beat of its own drum. Yes, it is ridiculous, but we’re not going to argue with it.

+ 2009 Acura MDX Luxury SUV Review (Canada)
+ 2010 Acura ZDX Luxury Sports Coupe Debut at NYC
+ 2009 Acura TSX Review: Sporty, Luxurious
+ 2009 Acura TSX Live Reveal
+ 2009 Chicago Auto Show: Acura V6 TSX Sport Sedan
+ 2009 Shanghai Auto Show: 2010 Audi Q7 Luxury SUV
+ 2010 Volvo XC60 SUV: Luxurious, Intriguing Safety
+ 2009 New York Auto Show: 2010 BMW X5 M, BMW X6 M
+ 2010 Lexus RX 350 Pricing Announces
+ 2009 New York Auto Show: 2010 Mercedes ML 450 Hybrid SUV Debut

Specifications

VEHICLE TYPE: front-engine, 4-wheel-drive, 5-passenger, 5-door wagon

PRICE AS TESTED: $101,125 (base price: $101,125)

ENGINE TYPE: DOHC 32-valve V-8, aluminum block and heads, port fuel injection

Displacement: 333 cu in, 5461cc
Power (SAE net): 382 bhp @ 6000 rpm
Torque (SAE net): 391 lb-ft @ 2800 rpm

TRANSMISSION: 7-speed automatic with manumatic shifting

DIMENSIONS:
-- Wheelbase: 112.2 in
-- Length: 185.6 in
-- Width: 71.8 in
-- Height: 76.0 in
-- Curb weight: 5665 lb

C/D TEST RESULTS:
-- Zero to 60 mph: 5.9 sec
-- Zero to 100 mph: 16.7 sec
-- Zero to 120 mph: 34.9 sec
-- Street start, 5–60 mph: 6.1 sec
-- Standing ¼-mile: 14.5 sec @ 94 mph
-- Top speed (governor limited): 133 mph
-- Braking, 70–0 mph: 186 ft
-- Roadholding, 300-ft-dia skidpad*: 0.63 g


FUEL ECONOMY:
-- EPA city/highway driving: 11/15 mpg
-- C/D observed: 13 mpg
-- *Stability-control-inhibited.
Gallery: 2009 Mercedes-Benz G550 Luxury SUV