Demand for traditional SUVs has fallen dramatically over the past year. As gas prices have risen, many consumers have turned to smaller cars, or SUV hybrids. Changing consumer tastes are challenging U.S. automakers, which have counted on SUVs to bring in high profits.
RENEE MONTAGNE, host: There's also bad news from America's automakers.  For the 12th straight      month, Ford's sales in the US declined, dropping 11 percent in May.  The      news from General Motors was only slightly better.  Its sales were off 5      percent compared to a year ago.  One reason for the trouble, demand for      large SUVs has fallen dramatically this year.  NPR's Wendy Kaufman      reports that high gas prices aren't the only reason sales of SUVs have      slumped.</s>WENDY KAUFMAN reporting: At the Robinswood ball fields in Bellevue, Washington, about every third      vehicle parked is an SUV.</s>KAUFMAN: And while there are some sport utility enthusiasts here, many      SUV owners say they wouldn't buy another one, or if they did, it wouldn't      be too big.  Bob Kaplan(ph), who's keeping score at his son's Little      League game, points to his glistening dark green Ford Expedition.  He      says it has nearly a hundred thousand miles, and he's looking to get rid      of it.</s>Mr. BOB KAPLAN (SUV Owner): I like the idea of the SUV, but I'm looking      at something that's smaller, that's going to be much more gas-efficient.      But I still have the same requirements.  I mean, I'd still like to get      five or six people in a car.  I still need to be able to pull my boat.      So what I'm looking at right now is a hybrid.  Toyota's releasing their      hybrid Highlander next month.</s>KAUFMAN: Sales of traditional large SUVs, which once totaled more than      3.1 million annually, are down more than 13 percent so far this year.      But SUV sales at Ford and GM are off more than 20 percent.  Ford, which      is promoting its own SUV hybrid, cites high gas prices.  GM, which is      introducing newly designed big SUVs next year, downplays their impact.      Company officials say people who spend $35,000 or more on an SUV aren't      all that concerned about paying a few dollars more at the gas pump.</s>Mr. BOB KAPLAN (SUV Owner): I don't buy that at all.</s>KAUFMAN: Again, Bob Kaplan.</s>Mr. BOB KAPLAN (SUV Owner): I mean, I think that my kids are learning a lot about      recycling, and when we're in the kitchen they're like, `Well, aren't you      going to recycle that, Dad?'  And then we get in the truck and I'm      getting 12 miles a gallon when I could get 25 miles a gallon and do the      same thing.  And it gets you thinking.</s>KAUFMAN: High gas prices aren't the only factor hurting sales of big      SUVs like the one Kaplan drives.  Four of GM's models haven't changed      that much in years and it's only natural that sales of these models would      taper off.  There are demographic changes as well.  The SUV-buying baby      boomers are aging. George Pipas is Ford's US sales analysis manager.</s>Mr. GEORGE PIPAS (Ford Motor Company): The boomers, regrettably, are      getting older and as they get older, they become empty-nesters.  That      means that they don't need the size or capability of the vehicle that      they once did, and as they get older, they're somewhat less nimble and so      the idea of using a stepladder to get into a sport utility vehicle is      something that they're increasingly unwilling to do.</s>KAUFMAN: But they are willing to buy so-called crossover vehicles,      smaller, less expensive sport utilities.  Built on car platforms, they      have a softer ride and get better mileage.  Last year, crossover sales      doubled to 1.9 million.</s>KAUFMAN: Tom Libby of J.D. Power, a market research firm, says the shift to the      smaller crossovers has hurt the automakers' bottom line.</s>Mr. TOM LIBBY (J.D. Power & Associates): The profit margins on those      full-sized SUVs are substantial and they are smaller on the crossovers.      In general, if you're selling a 25,000 to $30,000 vehicle, your margins      are going to be lower than if you're selling a $40,000 vehicle.</s>KAUFMAN: Both Ford and GM spent a decade focusing their engineering and      marketing on the big, highly profitable SUV.  Now that the SUV market has      changed, Ford and GM are pursuing somewhat different strategies.  Ford is      making a major move to the crossovers, but GM, which plans 14 crossovers      by 2009, is still putting a lot of emphasis on the big sport utility      vehicle. Company spokesman Brian Akre notes that GM will bring its      redesigned traditional SUVs to market early next year, sooner than      originally planned.</s>Mr. BRIAN AKRE (GM Spokesman): There has been some criticism within the      media and among some analysts about why we're pulling those ahead, but we      have 60 percent of that market and that still is going to be a big      addition to our bottom line.</s>KAUFMAN: There is yet another challenge for Ford and GM.  For years,      Japanese vehicles have scored higher than Detroit's in quality.  But now,      says Tom Libby of J.D. Power, the American automakers have nearly closed      the gap. Nonetheless, he says, the perception remains that Ford and GM      are not in the same league as the Japanese when it comes to quality.</s>KAUFMAN: Wendy Kaufman, NPR News, Seattle.</s>RENEE MONTAGNE, host: This is MORNING EDITION from NPR News.  I'm Renee Montagne.