Wind would certainly think we feel prices as high as they are that fewer people would be buying large minivans or SUVs. Well, that stands for reason. However, first quarter results for car sales showed that SUVs sales were still robust. Of course with the most recent 30 cents per gallon raise on gasoline prices and with oil barrel prices trading at over $75 per barrel one would think that the second quarter results will hardly resemble the first. Additionally hurricane season is coming and is notorious for causing widespread speculation in the oil futures markets and thus raising the prices even more. I

SUV sales in 2005 just barely topped the 2004 records by 81,304 more SUVs sold. Many auto analysts believe that the first quarter 2006 sales results or more a factor of heavy discounting and incentives by U.S. automakers then any reflection of the high oil or gasoline prices. In fact Daimler Chrysler on their Grand Jeep Cherokee series were offering no money down in cash incentives plus one year of free gasoline and five years of free oil changes after dealerships. Those are difficult things to compete with if you're trying to move the United States of America off its addiction to foreign oil.

Some chief economists for the automakers believe that 2006-year will be good but not the robust sales year of 2005. Some are predicting that 16.8 million cars will be sold in 2006 and that is only slightly down from the 2005 numbers. Most believe that Toyota will continue to capture large market share against the U.S. automakers and that more compact and fuel efficient cars will begin to outsell the minivans and SUVs. Makes sense to me, so, consider this in 2006.

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