The Slow, Profitable Death of GM’s Big SUVs

In an era of emerging hybrids and fuel-efficient cars, one would think that General Motor’s larger SUV models would be endangered to the rapidly increasing fuel economy. With a distinct incline in gas prices, it would be intuitive to rule out the possibility of purchasing one of Chevrolet or GMCs large crossovers. However, the larger SUV models such as the Tahoe, Suburban,Yukon and Yukon XL still turn a substantial profit. The presumable reason for the continuing success behind these fuel monsters is the demographic they cater to. The folks who purchase these types of gas-guzzlers tend to be more affluent. With the dying need for uneconomical automobiles, GMC has been able to jack up the price of these models because of the superior income of their target market. The families who purchase these vehicles tend to utilize every one of their capabilities, notably, their space, size and their ability to cope with a myriad of unstable terrains. I would argue that even though we are still feeling the aftermath of a global, economic recession, the individuals who have the means to spend money on gas at escalating prices per gallon will spend the money for the added space and comfort. Inevitably, the dying age of these larger model SUVs are still highly profitable, even on their last legs.

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