Today’s data release got the party rolling:  Core PPI (excluding food and energy) fell 0.3%, the first such drop since October ’05. Stocks rallied, as did Bond prices, driving yields down 75 bps across the curve.

A closer look reveals how this happened:  Vehicle prices fell 2%, with Car prices down 0.8%. But the real action was in dropping Light Truck prices: Given Q2 surge in Oil and gasoline, its no surprise that light truck prices fell 3.1%. I expect to see this metric to be under continued pressure for the foreseeable future.

The drop in Car and Truck prices accounts for nearly the entire decline in the core PPI.

Prices for oil and other materials continue to
rise; WSJ noted that "Deeper in the production pipeline, prices increased. Prices of raw materials,  also known as crude goods, rose by 3.1% in July after declining 1.7% in June.
Intermediate goods prices increased 0.5% after climbing 0.7% in June."

Prices of metals and chemicals continued to rise. These price increases include a 4.8% rise in
energy materials, and a 1.3% gain in prices of
industrial materials.

And, as we learned last week, productivity growth is slowing.

>
The bottom line is that this is a far less benign number than would appear at first blush.

>

UPDATE: August 15, 2006 12:47pm

Mike Darda points to these Bloomberg charts:

Ppi_crude

No inflation to see here, move along . . .

UPDATE 2: August 15, 2006 3:37pm

The great irony here is that because GM can’t move their trucks due to their lousy fuel economy,  they have to offer big discounts — i.e, rebate/mark them down.

The sale prices of poor selling trucks makes it appear that there is no inflation, when what we actually have is everyone thinking inflation is going away — so naturally the markets rally.

Hence, by being unable to sell their 10MPG trucks, GM’s stock price actually rises!

>

Sources:
Producer Price Indexes
BLS, July 2006
http://www.bls.gov/news.release/pdf/ppi.pdf

Core Wholesale Prices Decline, Suggesting Inflation Is Easing
BENTON IVES-HALPERIN
WSJ, August 15, 2006 9:34 a.m.
http://online.wsj.com/article/SB115564422383336075.html

Core wholesale prices fall 0.3% in July; Core intermediate PPI up 7.9% in past year
Rex Nutting
MarketWatch, 10:21 AM ET Aug 15, 2006
http://tinyurl.com/o9kjr

Category: Data Analysis, Federal Reserve, Inflation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

70 Responses to “Truck Price Pressure Drives Core PPI Lower”

  1. sell_the_ten_year says:

    You mean our economy’s stability isn’t hinged on the price of light trucks?!

  2. david foster says:

    “Given Q2 surge in Oil and gasoline, its no surprise that light truck prices fell 3.1%”…and this points out a problem with measurements like “core inflation.” If you exclude fuel costs but keep transportation costs, then you are measuring a cost factor than benefited from higher oil prices, but not thecountervailing cost factor that caused this benefit!

  3. Michael C. says:

    Far less benign number? Ha.

    Personally, I have no home, health insurance, or heating bills. And I buy a few light trucks a month to boot.

    So this PPI is soooo me.

  4. me says:

    OK Michael you beat me.

  5. emd says:

    just sell the strength…. and keep doing so until proven wrong.

  6. DBLWYO says:

    PPI – Jul06
    Commodities Equipment Finished
    Value 167.1 146.4 162.0
    1Mo% 0.7% -0.3% 0.2%
    12Mo% 6.9% 1.4% 4.2%

    In case anybody’s interested in the actual data what was reported as PPI was the finished goods PPI index. The others for ‘All Commodities” and ‘Equipment/Intermediate Goods” are shown above. Notice that monthly % change all up was 0.2% but the 12Mo (YOY) % increase was 4.2% (which btw matches the same YOY for the CPI).

    Without interpretation, interpolation or de-construction that looks to me like actual inflation is running about 4.2%. At least IMHO – what am I missing here ?

    Worse input costs, through dropping this month, are running significantly higher at 6.9% which means the pressures there continue to build AND/YET everybody in the middle is getting trimmed from both sides because their prices aren’t staying up with (which means that everybody’s margins are absorbing the cost increases).

    Now given that nobody appears to be looking beneath the headlines let alone at the data how do we all find the right musical chair to sit in when the music stops ? :) !

  7. babycondor says:

    DBLWYO: didn’t you know? They changed the rules of the game.

    The music never stops!

  8. snook says:

    Has anyone out there priced car/ truck tires lately? Bought a quart of castrol GTX 20-50 wt oil lately? What happened to the $0.99 specials…I have all these copons. Now, on sale>> $3.09.

  9. Michael C. says:

    So light truck sales = 1% rally in the markets?

    Go figure.

    You would think light truck sales merely acknowledge the high gas prices and its impact on the consumer/economy. But that’s thinking too hard and being too realistic it seems.

    Buy on!

  10. snook says:

    Has anyone out there priced car/ truck tires lately? Bought a quart of castrol GTX 20-50 wt oil lately? What happened to the $0.99 specials…I have all these coupons. Now, on sale>> $3.09.

  11. Michael C. says:

    >>>No inflation to see here, move along . . .<<<

    That’s right. Why are your charts upside down. Please correct them.

  12. Ch says:

    Being mindful of the light truck component, which interest rate is truly having an effect? 4%? 4.5%? Figure a 6 month lag, perhaps the Fed has found the sweet spot. Tomorrow will be interesting, as will next month’s reports.

  13. Brion says:

    Glorious news! Our Homeland’s economy, under the wise guidance of the diligent Leader BUSH, has blossomed!! The Monies have grown for ALL! And so the People rejoice at the Stewardship of Leader BUSH and his able Lieutenant, Bernanke!!

  14. Cherry says:

    Inflation numbers sway up and down. Next month the core PPI could be up .5%, what did July mean, absolutely nothing.

    The market needs to stop spraying on every little number. It is the general trend of things. Yet, children will act like children.

  15. Behind the Headline

    We can count on Barry Ritholtz to flush out the gory details behind the mornings PPI number:
    Todays data release got the party rolling: Core PPI (excluding food and energy) fell 0.3%, the first such drop since October 05. Stocks r…

  16. Trend Watcher says:

    My recommendation about the best way to watch numbers such as the PPI is to look at the year over year percentage change rather than the individual one month numbers.

    The Bureau of Labor Statistics makes it easy for anyone to take a look for themselves at:

    http://data.bls.gov/cgi-bin/surveymost?wp

    Then pick the metrics you are most interested in and select Retrieve Data (e.g. finished goods, all commodities and #2 diesel)

    You’ll get a 10 year table of data for each item you select but these will be the raw numbers and not very useful. So select More Formatting Options.

    On the next page, uncheck Original Data Value and check 12 month percent change. You can also adjust the time period, e.g. from 2001 to 2006. Make sure you also check Include Graphs.

    Then select Retrieve Data again and you will be able to see the graphs showing the trends for each of metrics you have selected. You’ll also get a table showing each month’s year over year percent change so you can read out the exact value for each month.

    Also, related to Barry’s previous post about precsion vs accuracy, by using year over year percent change, you end up with 2 significant digits in most cases which is just about right even though the one month numbers reported are only to a single significant digit.

    If we could come up with a short list of the 10-30 most important PPI submetrics and present them in this way, it would make a lot more sense than trying to read the text and table version that the BLS publishes each month at: http://www.bls.gov/news.release/pdf/ppi.pdf

  17. Mike M says:

    My thesis: Deflation in glutted items: cars, trucks, homes, anything imported from China. Inflation in everything else: health care, food, medical. Which means? Monetary inflation will show up somewhere. The government will adjust accordingly to make things look good. Get used to the madness.

  18. albiegf13 says:

    Patience… Patience… My wallet speaks louder than all the statistics on earth… Has anyone seen the price of Beluga lately… My God…! What’s a girl to do….? Speaking of girls, how about the price of a good hooker…. Geezzzzz! What’s a boy to do…?

  19. jmf says:

    hello from germany,

    has anybody seen the take from cramer on the arm problematic. unbelivable.

    worth reading. please raed alo the quotes from itulip from cramer in the dot.com days.

    the quotes to the arms desserve to put in the same camp

    http://immobilienblasen.blogspot.com/2006/08/
    cramer-wie-zu-dotcom-zeiten.html

  20. Bob A says:

    “Consumers have been spending more than their disposable incomes for the past year, in part by taking out equity from their homes.”

    For the last year? Try five years. Did they actually
    pay the guy to write this?

    Marketwatch “http://www.marketwatch.com/News/Story/Story.aspx?guid=
    %7BC63296BD%2D60D8%2D44B9%2DAFEC%2DE60DE1D70D47%7D&siteid=
    myyahoo&dist=myyahoo

  21. Bob_in_MA says:

    Barry,

    Isn’t it your position that it’s wrong-headed to focus on a core figure that excludes food and energy? On the other hand, if a different category (cars and trucks) accounts for most of a big drop, then maybe we should discount that component? Is that this the beginning of a new “BarryR core inflation rate?” It includes food and energy, but excludes cars and trucks…. ;-)

    Seriously, it is not my point that you are wrong about inflationary pressures or the governments accuracy in measuring inflation. (Though you seem to be rather selective in that criticism. At 7am, you called the official figures that contradicted your view “nonsensical.” Four hours later, you cite figures coming from the same government agency that you feel buttress your case….)

    I am a skeptic, so I take it on faith that the official figures on inflation are almost certainly inaccurate. But what do you offer in their place?

    Yes, commodity prices have jumped up and created a lot of pressure in the pipeline. On the other hand, wages haven’t even kept up with inflation and job creation has been anemic. Probably 200,000 fewer homes will be constructed this year, with another drop likely next year. Won’t that put some downward pressure on commodities like cement, copper, etc.? Isn’t it almost a certainty that the amount of energy required per $ of GDP is going to go down around the globe, particularly in China, India, etc.?

    Personally, I see the greater danger in a drop-off in demand by consumers, particularly in the U.S., but in all the debt fueled economies–the UK, Spain, Australia, Italy… If that happens, commodity prices will likely become a downward pressure on prices.

  22. Cherry says:

    Spiraling deflation=Helicopters get ready.

    The fact that Bernanke was named FED chairman after Gov. Strong, er I mean Greenspan is supsicious and the bankers aren’t stupid. They know whats coming.

  23. Bob –

    its my position to want to identify what is happening in reality, and adjust accordingly.

    Today’s data is a perfect example: Are prices rising or falling, and why?

    It turns out most prices (energy, materials, internmediate goods) are rising, but one particular subset — Cars in general, and light trucks in particular — are falling.

    Why are light truck prices falling? BECASUE THEY GET LOUSY GAS MILEAGE AND GAS IS NOW $3.39 PER GALLON.

    So we have the irony of energy inflation driving fuel prices up, and therefore reducing demand for poor MPG vehicles.

    And GM, Ford and Chrsyler must cut their prices to move the sheet metal off the dealer lots.

    Thus, rising inflation in general has led to the appearance of declinging inflation.

    Capiche?

    Pop the champagne if you want, but don’t say it wasn’t explained to you . . .

  24. ss says:

    Barry,

    “The drop in Car and Truck prices accounts for nearly the entire decline in the core PPI. ”

    Can you please quantify this? thx

  25. DBLWYO says:

    TrendWatcher: excellent point. It is, roughly the proceedure I followed to generate the ‘real data table’ on PPI. You can also download as much data as you like to Exel and do your own YOY% analysis and graphs.

    BobinMA, BR, et.al.: as TW implies out the YOY% changes pretty much wash the noise and allow one to see trends, change rates and (the very most difficult) turning points. If one goes to the BLS data site they in fact put out a dashboard on the PPI for many commodity and industries any one of which can be dove down on.

    Given the data is what it is and is about as good as we’re going to get there really aren’t affordable alternatives but examing the patterns really tells you, IMHO, about all you really need to know.

    And represents an information advantage – speaking of inefficient markets. Just think we’ve got nearly 2% one day jumps in major indices that’re readily shown to be ‘false-to-facts’ of the brutal realities (as Jim Collins calls it). So why are folks and Mr. Market ignoring that data and as the music plays on can we exploit it ?

  26. beechdriver says:

    From MarketWatch

    NEW YORK (MarketWatch) – Deere & Co. said Tuesday its third-quarter net income rose 13% as it raised prices on its agricultural equipment and benefited from better sales of its landscaping, construction and forestry machines.

    Nope no inflation here – just raising prices.

  27. j d ess says:

    ss:
    you want barry to quantify something, whilst you go around saying things like “have you seen (fill in the blank to buttress bull case)?” with no quantification, no link, no historical context and generally followed with some sort of cheer or sneer. heh. good stuff. regardless, if you RTFAs linked as sources, specifically the marketwatch one, you’d see the quantification.

    Or, better yet, take a look at the release itself. Page 16. Hrmmm…from there I see you could be right. It’s not just light-trucks. Why. look…EGGS! Dropped 26% June to July! Finfish AND shellfish off 9+%. Two words: Boo yah!

  28. sell_the_ten_year says:

    This PPI report gives a whole new meaning to the phrase “back up the truck.”

  29. ss says:

    JD:

    Very clear post ..Thanks!

  30. kevin says:

    When the market wants to go in a certain direction for a while, or is due for a move in a certain direction, then any data or event that can justify that move will be jumped on.
    Barry and others have saying there would be a move up in August into September before the real move down started in earnest (how did they know this?), the Middle East is settling down enough that a general conflagration and $200 oil is off the table for now, so the market was waiting for an excuse to go up.
    This was another “the Fed’s done, let’s celebrate” day. It will be interesting to see how long it takes this time for people to think about what the light truck number means for the economy and profits. GM and Ford?
    I have the sense that there is a battle between inflation and deflation now – like being pulled out to sea by a rip tide and but not going too far because a 9-foot wave is crashing on you. On _average_, it balances out, but it would be easy to drown in the turbulence.
    Or is it always like this and I am just noticing it because I am paying closer attention now that I am old enough to have entered the lifephase of frantically saving for the retirement I had not prepared for earlier?

  31. Michael C. says:

    >>>When the market wants to go in a certain direction for a while, or is due for a move in a certain direction, then any data or event that can justify that move will be jumped on.<<<

    That is so true.

    I think the weekly close will be very telling as we are due for some sort of trend resolution off the recent choppiness.

  32. Cherry says:

    They also missed Builder confidence, which is moving to record lows. Shame shame!!!!

  33. T says:

    SS: RTFA = read the ——— article

    From MW: Car prices fell 0.8%. Light truck prices fell 3.1%. Excluding autos, the core PPI was roughly flat, said Stephen Stanley, chief economist for RBS Greenwich Capital.

    Read the actual PPI report for the per-basket breakdown.

  34. That’s the great irony of the market — collectively, the crowd does what it will, regardless of right or worng.

    Ned Davis asked: “Do you want to be right, or do you want to make money?”

  35. ss says:

    So a flat CPI beats concensus…and the point is?

    Hey…question for you all….when was the last time the Fed quadrupled rates? Can we quantify the lag effect from this current perch?

    That’s the debate…place yer bets!

  36. BDG123 says:

    Touche!! The best post of the day! You should permanently put that under your “Big Picture” title. DO YOU WANT TO BE RIGHT OR MAKE MONEY?

  37. crack says:

    Barry, et. al.,

    Do you think that its possible that these price increases aren’t classic inflation. Is it possible that after the 00 bubble we actually had deflation and the current rise in prices is a reversion to the mean? I’m not saying this to say we aren’t seeing a rise in prices, nor to make a bull case. I think if anything its an even more bearish case. Just wondering.

    Crack

  38. Royce says:

    The market rallying today should be viewed in light of recent history. The small caps had a big move up today, for example, but they’re still down 9% or so off their May highs.

    So it’s not that everyone is blind to inflation or other structural issues, Barry. It’s just that people are trying to work out the pricing.

  39. T says:

    Crack — I don’t think anyone’s seen much to suggest that there was any real deflation during the post-bubble period.

    If you look at the core CPI numbers on the BLS.gov site, inflation has been about 2-4% every year for the past year. Additionally, all of the post-bubble price indices are well over the highs reached during the bubble (which itself didn’t really create that much inflation.)

    Here’s the series for each half-year, starting in Jan 1998:
    172.5
    174.3
    176.2
    177.8
    180.3
    182.3
    185.0
    187.2

  40. muckdog says:

    Higher energy prices act like a tax hike on consumers. It is not inflationary. If you have less money in your wallet, you make less trips to the malls. This affects your discretionary spending.

    Starbucks.
    Cheesecake Factory.
    And now, Wal-Mart.

  41. cs says:

    When I saw this news this morning I knew I had to visit this place to find out exactly why inflation is really 10% per minute, lo and behold I was not disappointed!

    “I my day… bread only cost a floopy, which is what we called a nickle back in those days. And by god you had to save a whole year just to put 2 floopies in your pocket, dag nabbit.”

  42. Alaskan Pete says:

    WalMart has first quarter of declining profits since ’96, and retail rallies. I’m not buying it. Faded the RTH just before the close.

    And look at that ugly hi/lo on the Naz (70/108). Don’t quite know what to make of it on a 90% up volume, 70% advancers day.

    And that’s all I gots to say about dat.

  43. BDG123 says:

    Pete,
    Likely options players and options pinning. Without looking at the underlying options dynamics, I’d guess alot of the options writers are propping the market this week.

  44. ss says:

    …or cocky shorts got scorched.

    Ex-squeeze me?

  45. Craig H says:

    “Likely options players and options pinning.”

    Of course. Keep your eyes on the heavy strikes. Some beautiful short setups being made as they drive the market into overbought levels again and set it up for the Q3 plunge.

  46. ItsAWrap says:

    I just bought a 03 Lincoln Navigator from a guilt ridden owner. Their guilt was so great that they sold it to me for significantly less than trade-in value(almost 10K less than retail, as per Kelly Blue Book).

    The way i see it, i’m making out big. I drive about 11K miles a year. I get 14mgps. If i had a nice sedan, i’d get 25mpgs. Basically, i’m ‘inefficient’ by 11mpg. 11K miles a year/11mpg in “inefficiency’.. that works out to an extra 1000 gallon/year i will need. @ 3.39=>$3390 in extra indulgence.

    I received an extra sweet deal(10K below list retail). So i’ve got almost 3 years til ‘break even’. But even if the discounting was not so severe, it still seems like gas guzzling SUV buyers are being ‘compensated’ for the higher fuel cost by a discount in prices.

    Is this inflation causing deflation? Or is this just efficient markets at work..

  47. fred hooper says:

    My Two Hundred Cents Worth: These inflation arguments are getting ready to make my simple-minded head explode.

    My definition of “Inflation” is:
    Phoenix median home prices are up about 145% in the last 5 years. The median price of a home in the US has grown from $20,000 in 1965 to $175,200 in 2001 to $240,900 in 2005. This is inflation at the core level of shelter. I don’t care what anyone else thinks. Addenergy, food, health, trucks. OK, whatever.

    For a change of pace, why don’t you really smart people hash my silly (but factual) comments to death instead of debating about prices of trucks and tractors.

    Highly Leveraged Households?:
    Total household debt (mortgage and consumer debt) as nearly doubled from $6 trillion to $11 trillion in the last 5 years. Since 1965, the US Household Savings Rate has ranged from 8-12% but has plummeted in the last 5 years to minus 2.0%. Put another way, total US Household Debt is approximately 102% of the Gross Household Product (GHP).

    Highly Leveraged US Government?:
    Total US debt (current account deficit), has nearly grown from 5.8 Trillion to 9 Trillion in the last 5 years. In 1965, the US debt was $322 Billion. Today, it’s approaching $9 trillion, or about 68% of GDP. This does not include the present value of future entitlement obligations such as SS, Medicare and Medicaid. Add another 40-50 Trillion depending upon your favorite intrepretation.

    Monetary and Credit Growth grinds to a halt?:
    At some point, the ability of the US Household and the US Government to borrow and service more debt will come to a screeching halt, and/or China and Japan stop lending US money. At some point, the ability of the Fed to increase the supply of money and credit will come to a nasty end, unless they reduce our fractional banking system’s Reserve Required Ratio to less than 10%. Did you know that the total amount of banking reserves required by the Fed for demand deposits is now about $50 Billion, or about the same as it was in 1995?

    Simple Math:
    Let’s see, $11 Trillion US Household Debt, plus $9 Trillion US Government debt, plus $40-50 Trillion future debt. That’s about $60-70 Trillion. How much is that for every person in the country? Where did all that money come from???

    Liquidation:
    We are now entering the phase of liquidation, e.g. selling our real estate, stocks, bonds, highways, and waterways to foreigners who have outsmarted US in our fiat money ponzi scheme.

    Bottom Line, the US economy and world economies are dependent upon US household and government debt spending. In 1981, US households were in a far better position to withstand a recession after years of inflationary growth in the late 70′s. At this point, the Fed cannot raise rates much further without throwing the country and the world into a severe recession. At some point, borrowers (households and governments) cannot continue borrowing without assets, savings or solid expectations of increasing future revenues in the form of wages, tax revenues or liquidations. Otherwise, it’s Bankruptcy time! Just my opinion, but what do I know?

  48. Movie Guy says:

    Barry Ritholtz – “The great irony here is that because GM can’t move their trucks due to their lousy fuel economy, they have to offer big discounts — i.e, rebate/mark them down. The sale prices of poor selling trucks makes it appear that there is no inflation, when what we actually have is everyone thinking inflation is going away — so naturally the markets rally. Hence, by being unable to sell their 10MPG trucks, GM’s stock price actually rises!”

    Barry Ritholtz – “Why are light truck prices falling? BECASUE THEY GET LOUSY GAS MILEAGE AND GAS IS NOW $3.39 PER GALLON.”

    Where is your GM mpg and sales data to make such claims, Barry?

    First, GM doesn’t build any light truck models, other than the older style and drivetrain supported H1 and H2 Hummer models, which average low mileage down in the 10 mpg city range at this time. And GM sure as hell doesn’t have any problems selling their Hummer models. Look up the GM sales data.

    Second, GM vehicle sales have continued to improve throughout 2006, growing from levels reported in Jan to the highs of June and July. In other words, July 2006 sales exceeded all previous months sales figures including June 2006. Comparing GM production and sales numbers to 2005 data looks bad, but you have to lop off at least 1 million vehicles in the production cycle as GM knocked that number out of the production build for 2006 and 2007 models. Further, GM scrapped some of its rental fleet sales which constitutes another chunk of missing sales, but those sales didn’t make hardly any profit for GM. One could call those vehicle sales production filler or employment production. Commercial fleet is a different matter, as volume sales with maintenance contracts are profitable.

    Third, current GM sales discounts for its light truck fleet match previous initiatives put forth by other OEMs. Moreover, the effort will avoid price point competition for the inbound 2007 models (other than full-size SUVs released earlier) due to hit dealerships within 30-45 days, volume of which to individual dealers will depend on previous sales histories. As such, clearing the 2006 models is essential to qualify for 2007 dealer share of new production build.

    Fourth, as a point of personal interest, one of the vehicles that I own is a 4-wheel drive Suburban with which I pull a 26 foot aluminum Featherlite car hauler trailer. My Suburban provides consistent 21-22 mpg on the highway at 70-85 mph w/o the trailer and 4,000-5,500 lbs of iron (meaning a classic car, hot rod, truck or other cargo), and 14-16 city when driving around town. GM’s engine computer management system and fuel injection and combustion cylinder engine efficiencies are such that driving at higher speeds doesn’t present a mpg problem due to the transmission and final gearing as well as the lean burn design of the engine. So, there is no bitching from me about the mileage. Show me another full frame SUV weighing as much and offering the power/comforts as a 4-wheel drive Suburban or GM equivalent which will provide the same level of performance and fuel economy. You can’t. I looked at all of them.

    Here is the EPA and GM data:

    Source: General Motors Coporation (GM)

    GM’s LIGHT TRUCK FLEET

    Vehicle mileage range based on lowest to highest ratings with available powertrain and drivetype combinations. Mileage ranges also include, as available on select models, lower fuel economy ratings for E85 equipped vehicles.

    Buick Rendezvous
    MSRP: $25,710-$29,295
    MPG City: 18-19 / Hwy: 23-26

    Buick Rainer
    MSRP: $32,060-$34,070
    MPG City: 16-16 / Hwy: 22-22

    Buick Terraza
    MSRP: $27,195-$31,310
    MPG City: 18-18 / Hwy: 25-25

  49. theroxylandr says:

    Well, people and businesses DO buy pickup trucks and autos, so why do you dismiss those data?

    I think this is a preview of price movements in the next few months.

    As construction slumps, there is suddently a lot of extra machinery and matherials for sale. Everything related to construction will fall in price, sometimes dramatically.

    The consumer is runnign out of money, too. At one moment the market will find out that there is no so many buyers to buy all those new plazma tv’s.

    And the heavy overbuild in housing will trigger price drops in rentals.

  50. Alaskan Pete says:

    “Second, GM vehicle sales have continued to improve throughout 2006″

    Movie guy, pass that good left handed cigarette over here..because you MUST BE HIGH. Here are the latest stats from Motor Intelligence on sales:

    GM Total July06 -22.5% YOY
    GM Cars July06 -4% YOY
    GM Light trucks -31.2% YOY

    See for yourself (it’s an excel spreadsheet that launches within the browser):

    http://www.motorintelligence.com/fileopen.asp?File=SR_Sales-2.xls

  51. dave says:

    Hi Barry, I feel so guilty. I bought one of those Chevy 4×4 Silverado trucks 3 months ago. I paid less out of my pocket than I did in 2002! If the economy ( as measured by the stock market) keeps going up I will be able to buy my next one for under $20,000. It makes no sense to me but I not economist. Dave.

  52. jkw says:

    The way i see it, i’m making out big. I drive about 11K miles a year. I get 14mgps. If i had a nice sedan, i’d get 25mpgs. Basically, i’m ‘inefficient’ by 11mpg. 11K miles a year/11mpg in “inefficiency’.. that works out to an extra 1000 gallon/year i will need. @ 3.39=>$3390 in extra indulgence.

    Your math is wrong. 11k/11mpg = 1000 gal/year. 11k/25mpg=440 gal/year. So you are only inefficient by 560 gal/year. At $3.39/gal, that is only $1900/year. So your breakeven point is about 5 years. Assuming that insurance and maintenance are the same.

  53. whipsaw says:

    Movie Guy, you must be a GM dealer or something. At any rate, your list doesn’t include real trucks, just a series of soccer mom specials, pimp mobiles, and faux cowboy rides. Real trucks have a loaded weight rating of 8500+ lbs and don’t even have mpg ratings, nor do they have to pass emissions inspections (altho I could wrong about the latter in Calif). All of them fall over a cliff as far as mileage goes and I am pleased to get 11 mpg out of my Dodge 2500 hemi driving in moderate secondary street traffic. If I had to sit on the interstate parking lot to get to work/home, it would be more like 9 mpg.

    If the mfgrs had to include real trucks in their fleet mpg calculations, they would have a big problem, but that’s what lobbyists are for. The plus side is that most people who buy these things are not dilettantes like myself and have no choice if they are going to earn a living, so sales may soften but will not tank like they have for the other stuff on your list.

  54. teddy says:

    I agree with me. If that sounds like I’m talking to myself, I’m not, almost, but not quite. Me is right, not left, that Michael C. had the post of the day. I think me going to get me a small truck wit a Kamper before they go up in price like everything else cause the rent, like my former mortgage, is getting too spensive.

  55. rick says:

    We had a big rally today,,,,,, all this analysis was useless, atleast today.

  56. ari5000 says:

    Yes — let’s talk about the market itself. It seems to GAP up and down now wildly. Is it me or is every day a 100 point day these days — up or down.

    It feels like someone is just messing around — like a hedge fund daytrading with $10 billion. “Good” inflation numbers come out and someone figures — let’s get the ball rolling, gap up the indexes by 1% and the short-cover frenzy and retail traders will jump aboard. It almost faded before noon but it was as if the money poured in every time the market seemed set to give it up.

    Inflation numbers and recessions take a while to develop. In the meantime, the markets seem to react as if today is all that matters.

    Looks like we have another two-day rally coming on, followed by yet another week of House of Pain.

    I don’t know how anyone long or short makes money these days. You have to be long, long, short short short, long short long short short long short long.

    It’s making me dizzy. And poor.

  57. Arthur Hill says:

    CPI- C-cannot P-predict I-inflation

  58. Movie Guy says:

    whipsaw – Real trucks have a loaded weight rating of 8500+ lbs and don’t even have mpg ratings, nor do they have to pass emissions inspections (altho I could wrong about the latter in Calif).

    You don’t have your facts straight.

    All truck drivetrains for over the road usage have to pass emission testing, including diesels. That includes Class 8 diesel tractors (the ones that haul the freight trailers, tankers, and flatbeds.

  59. Movie Guy says:

    Alaskan Pete,

    What did I say in my original post?

    I said: “GM vehicle sales have continued to improve throughout 2006, growing from levels reported in Jan to the highs of June and July. Comparing GM production and sales numbers to 2005 data looks bad, but you have to lop off at least 1 million vehicles in the production cycle as GM knocked that number out of the production build for 2006 and 2007 models. Further, GM scrapped some of its rental fleet sales which constitutes another chunk of missing sales, but those sales didn’t make hardly any profit for GM.”

    You’re hung up on YOY data. Did you expect GM to duplicate its high sales numbers of last summer? Why? And with what product? GM’s turnaround strategy involved closing many North American plants and cutting build production in efforts to put GM back on a profitability basis. There was no way that GM would ever duplicate the sales volume of last summer because they don’t have that much product out there. The dealership level of floorplan vehicles is down substantially as compared to last year, with the exception of some very high volume dealers.

    GM’s Calendar Year to Date sales for light trucks are down 16.7%, with the majority of the loss reflected during the months of June and July 2006. As expected, though monthly sales during 2006 have continued to improve. No surprise on the CYTOD sales decline based on the turnaround strategy, fuel costs, and GM dealer requirements for ordering floorplan vehicles during 2006. In other words, GM is only supplying dealers with replacement product based on 2006 sales, not 2005 sales. If the dealers didn’t achieve high sales of 2006 product, they didn’t magically receive continual flow of inbound product. Ask any dealers.

    Do you intend to quote YOY data for mid-size SUVs when GM stops manufacturing its mid-size SUVs, as is the planned course of action? Making such a YOY comparison won’t serve any purpose. Similarly, the news media slant of comparing 2006 sales to those of 2005 is misleading. Only idiots would have anticipated a repeat of the summer sales of 2005. The failure to note the GM month by month sales gains during 2006 is a marketing analysis failure by those analysts who have the responsibility to size up GM’s performance on behalf of clients. The YOY comparison doesn’t begin to “tell the story”. Yet, most of the news reports have focused solely on 2005 comparisons with no mention of downsizing or pricing restructure.

    Now, here is the GM data, month by month during 2006. And one doesn’t need to sort through a spreadsheet to read this information. Each news release includes a by product brand breakdown of sales at the bottom of each news release.

    As Barry focused on GM light truck sales, claiming all losses were due to 10 mpg performance, I have done the same with the following information. The GM light truck average fleet mpg claim is bogus, so let’s move on to actual sales data.

    GM News Releases

    or go here:

    GM Sales

    —-

    GM RELEASE: 2006-01-04

    Light Truck Total: -2.4% Calendar Year-to-Date January-December 2006 to 2005
    Light Truck Units: 2,702,464 to 2,770,260, 2006 to 2005
    * This shows that GM light truck unit sales fell from 2004 to 2005 by 67,796 units.

    GM RELEASE: 2006-02-01

    Light Truck Total: -0.3% Calendar Year-to-Date January-January 2006 to 2005
    Light Truck Units: 158,664 to 159,191, 2006 to 2005

    GM RELEASE: 2006-03-01

    Light Truck Total: +2.6% Calendar Year-to-Date January-February 2006 to 2005
    Light Truck Units: 343,489 to 334,756, 2006 to 2005

    GM RELEASE: 2006-04-03

    Light Truck Total: -2.6% Calendar Year-to-Date January-March 2006 to 2005
    Light Truck Units: 569,360 to 584,293, 2006 to 2005

    GM RELEASE: 2006-05-02

    Light Truck Total: -2.5% Calendar Year-to-Date January-April 2006 to 2005
    Light Truck Units: 774,553 to 794,210, 2006 to 2005

    “Despite increases in fuel prices and contrary to industry trends, GM posted a 2 percent improvement in total truck deliveries, driven by continuing strong sales results for its all-new full-size sport utility vehicles and full-size pickups. Chevrolet Tahoe sales were up 35 percent in April. Of the 13,138 total deliveries, 10,607 were 2007 models. GMC Yukon posted a 36 percent sales gain in April, with 5,978 total deliveries. There were 4,862 2007 Yukon deliveries. April sales of the 2007 model were 48 percent greater than March results. Cadillac Escalade sales improved dramatically, with a 127 percent improvement over last year. There were 4,109 total sales, of which 3,258 were the all-new 2007 model. 2007 Escalade sales in April rose 23 percent compared to March.”

    “Chevrolet Silverado deliveries rose 9 percent in April, and GMC Sierra sales were up 4 percent. The continuing strength of GM’s full-size pickups is noteworthy, given that the product is approaching the end of its lifecycle. The new full-size pickups begin arriving in dealers’ showrooms in the fourth quarter of this year.”

    “GM’s newest entries in the small sport utility category also contributed to the improvement in overall truck sales. Chevrolet HHR and Equinox and Pontiac Torrent posted solid results. HHR had its best-ever sales month and Equinox achieved record April sales. The new Saturn Vue continued its sales momentum with its eleventh consecutive month of year-over-year sales increases (+25 percent).”
    “HUMMER posted a year-over-year sales record for the twelfth consecutive month, with total sales up 231 percent. Retail deliveries rose 210 percent. H3 continues to drive HUMMER’s record-setting pace and leads the entry luxury utility segment by a wide margin.”

    GM RELEASE: 2006-06-01

    Light Truck Total: -4.2% Calendar Year-to-Date January-May 2006 to 2005
    Light Truck Units: 983,059 to 1,026,172, 2006 to 2005

    “While high gas prices continue to have some impact, consumers have responded favorably to GM’s new products, particularly the all-new 2007 Chevy Tahoe (11,689 sales), Avalanche (1,692) and Suburban (5,128), GMC Yukon/Yukon XL (7,965) and Cadillac Escalade (2,945) and Escalade ESV (1,097), resulting in a combined 41 percent sales increase compared to April.”

    GM RELEASE: 2006-07-03

    Light Truck Total: -13.0% Calendar Year-to-Date January-June 2006 to 2005
    Light Truck Units: 1,219,078 to 1,401,510, 2006 to 2005

    “General Motors’ dealers in the United States sold 413,473 new cars and trucks in June, the company’s best sales performance year-to-date, up 15.2 percent, or about 68,000 units, compared with May.”

    GM RELEASE: 2006-08-01

    Light Truck Total: -16.7% Calendar Year-to-Date January-July 2006 to 2005
    Light Truck Units: 1,463,173 to 1,756,356, 2006 to 2005

    “On the truck side of the market, full-size pickup trucks had their strongest sales month of the year with 66,583 Chevy Silverado and 22,947 GMC Sierra trucks sold. GMC had its best retail sales month of the year, with 48,085 vehicles delivered, and the GMC Canyon had its best retail month of the year, delivering 2,717 trucks. GM sold 4,455 all-new 2007 Chevy Avalanche, 12,950 Tahoe, 6,269 Suburban, 6,022 GMC Yukon, and 3,385 Yukon XL vehicles in July. GM’s luxury utilities posted solid sales results in July, with the all-new 2007 Cadillac Escalade selling 2,105 vehicles; 2007 Escalade ESV selling 1,120 vehicles; and Cadillac SRX delivering 1,822 vehicles. July was the best sales month of the year for large utilities (including large luxury) with 37,455 vehicles sold.”

    “…HUMMER H3 showed a 24.1 percent increase compared with July 2005 and was up 36.6 percent compared to June 2006. HUMMER had its best sales month of the year with 6,991 deliveries. CYTD HUMMER sales of 39,786 vehicles are up 60.1 percent compared with the same seven months one year ago. ”

    >>

  60. rick says:

    whipsaw – Real trucks have a loaded weight rating of 8500+ lbs and don’t even have mpg ratings, nor do they have to pass emissions inspections (altho I could wrong about the latter in Calif).

    You don’t have your facts straight.

    All truck drivetrains for over the road usage have to pass emission testing, including diesels. That includes Class 8 diesel tractors (the ones that haul the freight trailers, tankers, and flatbeds.

    Posted by: Movie Guy | Aug 16, 2006 2:17:32 AM
    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

    I really don’t think the mileage or emmision standards are as strict on the big american type SUV’s or
    tractor trailers as they were on passenger vehicles….
    correct me if I am wrong…. atleast when I checked
    years ago.

  61. Movie Guy:

    Thanks for all the data on GM trucks.

    Now, how about a comparo? How do those GM MPG ratings compare with Toyota, Honda, Subaru trucks?

  62. Mark says:

    Barry-

    Now all the economists have scrambled to lower their estimates for today! Will they be proven wrong yet again? Will it matter?

  63. j d ess says:

    No surprise on the CYTOD sales decline based on the turnaround strategy, fuel costs , and GM dealer requirements for ordering floorplan vehicles during 2006.

    so if GM could put more SUVs in the dealers, they’d sell more of them? why is GM closing plants if it could move more SUVs off the lots?

    seems to me you are saying that GM’s turnaround strategy (incl. closing plants and decreased floorplan vehicles) is, contrary to its goal, hindering their performance. if you’re a shareholder or dealer, you may want to send them an email or something to let them know.

    also, since you have so much GM info at your fingertips, do you have any avg pricing info for light-trucks over the same time period? i’m guessing it’s down a smidge.

  64. whipsaw says:

    Better stick to movies, Moive Guy. Metro Atlanta is under as much EPA pressure about auto emissions as any place in the country, yet inspections are only required if you own:

    “A 1982-2003 model year gasoline-powered car or light truck (up to 8,500 lbs. gross vehicle weight rating) AND you are a resident of one of the covered counties* AND your vehicle is registered in that county then you need to have it inspected in 2006.”
    http://www.cleanairforce.com/emission.htm#4

    This is not news and is actually inconvenient since I can’t use online tag renewal because of the lack of an emissions certificate number.

  65. PPI + CPI = SOS

    That’s right, if you break down the numbers, add in all things inflationary, you come up with the “Same Ole Stuff”. As for the PPI numbers released yesterday, Barry Ritholtz at “The Big Picture” (www.bigpicture.com), did an excellent job of…

  66. Nels Nelson says:

    Just as there’s a story behind the PPI numbers, there’s also a story behind how GM is struggling to maintain sales of their trucks and SUVs.

    Read about GM’s “Zero Percent for Deadbeats” program in Robert Farago’s The Truth About Cars website.

    http://www.thetruthaboutcars.com/?p=2020

  67. Movie Guy says:

    Barry – Movie Guy: Thanks for all the data on GM trucks. Now, how about a comparo? How do those GM MPG ratings compare with Toyota, Honda, Subaru trucks?

    Ok. I will compare pickup trucks and SUVs separately. That should be adequate.

    The following information is extracted from data maintained at the U.S. Department of Energy web site, Fuel Economy.gov [ http://www.fueleconomy.gov/ ].

    Pickup Trucks

    Sorted by Engine Cylinders, Type Drive (2, 4, All), followed by Fuel Type / MPG City / MPG Hwy / Annual Fuel Costs
    * Based on 45% highway driving, 55% city driving, 15000 annual miles and the price of fuel used by the vehicle.
    ** Regular gas is priced at $3.00 in this federal government comparison.

    There are no Subaru trucks unless one considers the Subaru Baja AWD a truck. I substituted Nissan trucks from this part of the engine cylinder, drive type, and fuel economy comparison. The Subaru Baja is reflected under the SUV rollup.

    4 Cylinder Engine, 2 Wheel Drive

    Toyota Tacoma 2WD
    4 cyl, 2.7 L, Man(5), Regular 20 27 $1958

    Chevrolet Colorado 2WD
    4 cyl, 2.8 L, Man(5), Regular 20 27 $1958

    GMC Canyon 2WD
    4 cyl, 2.8 L, Man(5), Regular 20 27 $1958

    Chevrolet Colorado Crew Cab 2WD
    4 cyl, 2.8 L, Man(5), Regular 20 27 $1958

    Toyota Tacoma 2WD
    4 cyl, 2.7 L, Auto(4), Regular 21 26 $1958

    Nissan Frontier 2WD
    4 cyl, 2.5 L, Man(5), Regular 22 25 $1958

    Nissan Frontier 2WD
    4 cyl, 2.5 L, Auto(5), Regular 19 24 $2142

    Chevrolet Colorado 2WD
    4 cyl, 2.8 L, Auto(4), Regular 17 23 $2367

    GMC Canyon 2WD
    4 cyl, 2.8 L, Auto(4), Regular 17 23 $2367

    Chevrolet Colorado Crew Cab 2WD
    4 cyl, 2.8 L, Auto(4), Regular 17 23 $2367

    4 Cylinder Engine, 4 Wheel Drive

    Toyota Tacoma 4WD
    4 cyl, 2.7 L, Man(5), Regular 19 23 $2250

    GMC Canyon 4WD
    4 cyl, 2.8 L, Man(5), Regular 18 23 $2250

    Chevrolet Colorado Crew Cab 4WD
    4 cyl, 2.8 L, Man(5), Regular 18 23 $2250

    Chevrolet Colorado 4WD
    4 cyl, 2.8 L, Auto(4), Regular 16 22 $2367

    GMC Canyon 4WD
    4 cyl, 2.8 L, Auto(4), Regular 16 22 $2367

    Chevrolet Colorado Crew Cab 4WD
    4 cyl, 2.8 L, Auto(4), Regular 16 22 $2367

    4 Cylinder Engine, All Wheel Drive

    NONE

    5 Cylinder Engine Models, 2 Wheel Drive

    Chevrolet Colorado 2WD
    5 cyl, 3.5 L, Man(5), Regular 19 25 $2142

    GMC Canyon 2WD
    5 cyl, 3.5 L, Man(5), Regular 19 25 $2142

    Chevrolet Colorado 2WD
    5 cyl, 3.5 L, Auto(4), Regular 19 24 $2142

    GMC Canyon 2WD
    5 cyl, 3.5 L, Auto(4), Regular 19 24 $2142

    Chevrolet Colorado Crew Cab 2WD
    5 cyl, 3.5 L, Auto(4), Regular 19 24 $2142

    Chevrolet Colorado Cab Chassis Inc 2WD
    5 cyl, 3.5 L, Auto(4), Regular 17 22 $2367

    Chevrolet Colorado Cab Chassis inc 2WD
    5 cyl, 3.5 L, Man(5), Regular 17 22 $2367

    GMC Canyon Cab Chassis Inc 2WD
    5 cyl, 3.5 L, Auto(4), Regular 17 22 $2367

    GMC Canyon Cab Chassis Inc 2WD
    5 cyl, 3.5 L, Man(5), Regular 17 22 $2367

    5 Cylinder Engine Models, 4 Wheel Drive

    Chevrolet Colorado 4WD
    5 cyl, 3.5 L, Man(5), Regular 19 24 $2142

    GMC Canyon 4WD
    5 cyl, 3.5 L, Man(5), Regular 19 24 $2142

    Chevrolet Colorado 4WD
    5 cyl, 3.5 L, Auto(4), Regular 18 22 $2367

    GMC Canyon 4WD
    5 cyl, 3.5 L, Auto(4), Regular 18 22 $2367

    Chevrolet Colorado Crew Cab 4WD
    5 cyl, 3.5 L, Auto(4), Regular 17 22 $2367

    5 Cylinder Engine Models, AWD Wheel Drive

    NONE

    6 Cylinder Engine, 2 Wheel Drive

    Toyota Tacoma 2WD
    6 cyl, 4 L, Auto(5), Regular 18 22 $2250

    Toyota Tundra 2WD
    6 cyl, 4 L, Auto(5), Regular 18 22 $2250

    Nissan Frontier V6 2WD
    6 cyl, 4 L, Man(6), Regular 17 21 $2367

    GMC Sierra 1500 2WD
    6 cyl, 4.3 L, Man(5), Regular 16 22 $2502

    Chevrolet Silverado 1500 2WD
    6 cyl, 4.3 L, Man(5), Regular 16 22 $2502

    Toyota Tacoma 2WD
    6 cyl, 4 L, Man(6), Regular 16 21 $2502

    Chevrolet Silverado 1500 2WD
    6 cyl, 4.3 L, Auto(4), Regular 16 21 $2502

    Nissan Frontier V6 2WD
    6 cyl, 4 L, Auto(5), Regular 16 20 $2502

    Toyota Tundra 2WD
    6 cyl, 4 L, Man(6), Regular 16 20 $2646

    6 Cylinder Engine, 4 Wheel Drive

    Toyota Tacoma 4WD
    6 cyl, 4 L, Auto(5), Regular 17 21 $2367

    Nissan Frontier V6 4WD
    6 cyl, 4 L, Man(6), Regular 17 21 $2502

    Toyota Tacoma 4WD
    6 cyl, 4 L, Man(6), Regular 16 20 $2646

    Chevrolet Silverado 1500 4WD
    6 cyl, 4.3 L, Man(5), Regular 15 20 $2646

    GMC Sierra 1500 4WD
    6 cyl, 4.3 L, Man(5), Regular 15 20 $2646

    Nissan Frontier V6 4WD
    6 cyl, 4 L, Auto(5), Regular 15 20 $2646

    GMC Sierra 1500 4WD
    6 cyl, 4.3 L, Auto(4), Regular 15 18 $2813

    Chevrolet Silverado 1500 4WD
    6 cyl, 4.3 L, Auto(4), Regular 15 18 $2813

    6 Cylinder Engine, AWD Drive

    2006 Honda Ridgeline Truck 4WD
    6 cyl, 3.5 L, Auto(5), Regular 16, 21 $2502

    8 Cylinder Engine, 2 Wheel Drive

    Chevrolet Silverado 15 Hybrid 2WD
    8 cyl, 5.3L, Auto(4), Regular 18, 21 $2367

    GMC Sierra 15 Hybrid 2WD
    8 cyl, 5.3L, Auto(4), Regular 18, 21 $2367

    Chevrolet Silverado 1500 2WD
    8 cyl, 4.8 L, Man(5), Regular 16 21 $2502

    Chevrolet Silverado 1500 2WD
    8 cyl, 4.8 L, Auto(4), Regular 16 21 $2502

    GMC Sierra 1500 2WD
    8 cyl, 4.8 L, Man(5), Regular 16 21 $2502

    GMC Sierra 1500 2WD
    8 cyl, 4.8 L, Auto(4), Regular 16 21 $2502

    GMC Sierra 1500 2WD
    6 cyl, 4.3 L, Auto(4), Regular 16 21 $2502

    Chevrolet Silverado 1500 2WD
    8 cyl, 5.3 L, Auto(4), Regular 16 20 $2502

    GMC Sierra 1500 2WD
    8 cyl, 5.3 L, Auto(4), Regular 16 20 $2502

    Chevrolet Silverado 1500 2WD
    8 cyl, 5.3 L, Auto(4), Regular 16 20 $2502

    GMC Sierra 1500 2WD
    8 cyl, 5.3 L, Auto(4), Regular 16 20 $2502

    Chevrolet Avalanche 1500 2WD
    8 cyl, 5.3L, Auto(4), Regular 15 21 $2646

    Toyota Tundra 2WD
    8 cyl, 4.7 L, Auto(5), Regular 16 19 $2646

    Nissan Titan 2WD
    8 cyl, 5.6 L, Auto(5), Regular 14 19 $2813

    Chevrolet SSR Pickup 2WD
    8 cyl, 6 L, Auto(4), Premium 15 19 $2831

    Chevrolet Silverado 1500 2WD
    8 cyl, 6 L, Auto(4), Premium 14 19 $3009

    GMC Sierra 1500 2WD
    8 cyl, 6 L, Auto(4), Premium 14 19 $3009

    Chevrolet SSR Pickup 2WD
    8 cyl, 6 L, Man(6), Premium 13 20 $3009

    8 Cylinder Engine, 4 Wheel Drive

    Chevrolet Silverado 15 Hybrid 4WD
    8 cyl, 5.3L, Auto(4), Regular 17 19 $2502

    GMC Sierra 15 Hybrid 4WD
    8 cyl, 5.3L, Auto(4), Regular 17 19 $2502

    Chevrolet Avalanche 1500 4WD
    8 cyl, 5.3L, Auto(4), Regular 15 20 $2646

    Chevrolet Silverado 1500 4WD
    8 cyl, 4.8 L, Man(5), Regular 15 19 $2646

    Chevrolet Silverado 1500 4WD
    8 cyl, 4.8 L, Auto(4), Regular 15 19 $2646

    Chevrolet Silverado 1500 4WD
    8 cyl, 5.3 L, Auto(4), Regular 15 19 $2646

    GMC Sierra 1500 4WD
    8 cyl, 4.8 L, Man(5), Regular 15 19 $2646

    GMC Sierra 1500 4WD
    8 cyl, 4.8 L, Auto(4), Regular 15 19 $2646

    GMC Sierra 1500 4WD
    8 cyl, 5.3 L, Auto(4), Regular 15 19 $2646

    Chevrolet Silverado 1500 4WD
    8 cyl, 5.3 L, Auto(4), Regular 15 19

    GMC Sierra 1500 4WD
    8 cyl, 5.3 L, Auto(4), Regular 15 19 $2813

    Toyota Tundra 4WD
    8 cyl, 4.7 L, Auto(5), Regular 15 18 $2813

    GMC Sierra 1500 4WD
    6 cyl, 4.3 L, Auto(4), Regular 15 18 $2813

    Chevrolet Avalanche 1500 4WD
    8 cyl, 5.3L, Auto(4), Regular 14 18 $2813

    Chevrolet Avalanche 1500 4WD
    8 cyl, 5.3L, Auto(4), Regular 15 20 $2646

    Nissan Titan 4WD
    8 cyl, 5.6 L, Auto(5), Regular 14 18 $3002

    Chevrolet Silverado 1500 4WD
    8 cyl, 6 L, Auto(4), Premium 14 17 $3212

    GMC Sierra 1500 4WD
    8 cyl, 6 L, Auto(4), Premium 14 17 $3212

    8 Cylinder Engine, All Wheel Drive

    GMC Sierra 1500 AWD
    8 cyl, 6 L, Auto(4), Premium 13 17 $3212

    Cadillac Escalade EXT AWD
    8 cyl, 6.0L, Auto(4), Premium 13 17 $3212
    * the 2007 model offers AFM and mileage
    along the lines of city/hwy: 13 19 or 13 20.

    ========

    Sport Utility Vehicles (SUVs)

    Sorted by Number of Engine Cylinders, Type Drive (2, 4, All), followed by Fuel Type / Mpg City / MPG Hwy / Annual Fuel Costs
    * Based on 45% highway driving, 55% city driving, 15000 annual miles and the price of fuel used by the vehicle.
    ** Regular gas is priced at $3.00 in this federal government comparison.

    4 Cylinder Engine, 2 Wheel Drive

    Toyota RAV4 2WD
    4 cyl, 2.4 L, Auto(4), Regular 24 30 $1733

    GM Chevrolet HHR 2WD
    4 cyl, 2.2 L, Man(5), Regular 23 30 $1800

    GM Chevrolet HHR 2WD
    4 cyl, 2.2 L, Auto(4), Regular 23 30 $1800

    GM Chevrolet HHR 2WD
    4 cyl, 2.4 L, Auto(4), Regular 23 30 $1800

    GM Chevrolet HHR 2WD
    4 cyl, 2.4 L, Man(5), Regular 22 30 $1800

    Honda CR-V 2WD
    4 cyl, 2.4L, Regular 23, 29 $1800

    Toyota Highlander 2WD
    4 cyl, 2.4 L, Auto(4), Regular 22 27 $1877

    Honda Element 2WD
    4 cyl, 2.4 L, Auto(4), Regular 22 26 $1877

    Honda Element 2WD
    4 cyl, 2.4 L, Man(5), Regular 21 25 $1958

    4 Cylinder Engine, 4 Wheel Drive

    Toyota RAV4 4WD
    4 cyl, 2.4 L, Auto(4), Regular 23 28 $1800

    Honda CR-V 4WD
    4 cyl, 2.4 L, Auto(5), Regular 22 27 $1877

    Honda CR-V 4WD
    4 cyl, 2.4 L, Man(5), Regular 21 26 $1958

    Toyota Highlander 4WD
    4 cyl, 2.4 L, Auto(4), Regular 21 25 $2048

    Honda Element 4WD
    4 cyl, 2.4 L, Auto(4), Regular 21 24 $2048

    Honda Element 4WD
    4 cyl, 2.4 L, Man(5), Regular 21 24 $2048

    4 Cylinder Engine, All Wheel Drive

    GM Saturn Vue FWD
    4 cyl, 2.2 L, Man(5), Regular 23 29 $1800

    Subaru Forester AWD
    4 cyl, 2.5 L, Man(5), Regular 22 29 $1800

    Subaru Baja AWD
    4 cyl, 2.5 L, Man(5), Regular 23 28 $1800

    Subaru Forester AWD
    4 cyl, 2.5 L, Auto(4), Regular 23 28 $1800

    Subaru Outback Wagon AWD
    4 cyl, 2.5 L, Man(5), Regular 23 28 $1800

    Subaru Outback AWD
    4 cyl, 2.5 L, Auto(S4), Regular 22 28 $1800

    Subaru Outback Wagon AWD
    4 cyl, 2.5 L, Auto(S4), Regular 22 28 $1800

    Subaru Baja AWD
    4 cyl, 2.5 L, Auto(4), Regular 21 28 $1877

    GM Saturn Vue FWD
    4 cyl, 2.2 L, Auto(4), Regular 22 27 $1877

    Subaru Forester AWD
    4 cyl, 2.5 L, Auto(4), Premium 21 26 $2095

    Subaru Forester AWD
    4 cyl, 2.5 L, Man(5), Premium 20 26 $2191

    Subaru Baja AWD
    4 cyl, 2.5 L, Man(5), Premium 19 25 $2292

    Subaru Outback Wagon AWD
    4 cyl, 2.5 L, Man(5), Premium 19 25 $2292

    Subaru Outback Wagon AWD
    4 cyl, 2.5 L, Auto(S5), Premium 19 24 $2292

    Subaru Baja AWD
    4 cyl, 2.5 L, Auto(S4), Premium 18 23 $2408

    5 Cylinder Engine Models, 2 Wheel Drive

    None.

    5 Cylinder Engine Models, 4 Wheel Drive

    GM Hummer H3 4WD
    5 cyl, 3.5 L, Man(5), Regular 16 20 $2646

    GM Hummer H3 4WD
    5 cyl, 3.5 L, Auto(4), Regular 16 19 $2646

    5 Cylinder Engine Models, All Wheel Drive

    None.

    6 Cylinder Engine, 2 Wheel Drive

    Toyota Highlander 2WD Hybrid
    6 cyl, 3.3 L, Auto(5), Regular 33 28 $1499
    * Average User MPG 24.8; MPG Range 21 to 30

    Toyota Lexus RX 400h 2WD Hybrid
    6 cyl, 3.3 L, Auto(5), Regular 33 28 $1499
    * Average User MPG 25.6; MPG Range 22 to 28

    Toyota RAV4 2WD
    6 cyl, 3.5 L, Auto(5), Regular 22 29 $1800

    GM Saturn Vue FWD
    6 cyl, 3.5 L, Auto(5), Regular 20 28 $1958

    GM Buick Rendezvous 2WD
    6 cyl, 3.5 L, Auto(4), Regular 19 26 $2142

    Toyota Highlander 2WD
    6 cyl, 3.3 L, Auto(5), Regular 19 25 $2142

    GM Chevrolet Equinox 2WD
    6 cyl, 3.4L, Auto(5), Regular 19 24 $2142

    GM Pontiac Torrent 2WD
    6 cyl, 3.4L, Auto(5), Regular 19 24 $2142

    Toyota Lexus RX 330 2WD
    6 cyl, 3.3 L, Auto(5), Premium 19 25 $2191

    Toyota Lexus RX 330 2WD
    6 cyl, 3.3 L, Auto(S5), Premium 19 25 $2191

    Toyota 4Runner 2WD
    6 cyl, 4 L, Auto(5), Regular 18 22 $2250

    GM Cadillac SRX 2WD
    6 cyl, 3.6 L, Auto(S5), Regular 16 23 $2367

    Honda Pilot 2WD
    6 cyl, 3.5L, Auto(5), Regular 18 24 $2250

    GM Buick Rainier 2WD
    6 cyl, 4.2 L, Auto(4), Regular 16 22 $2502

    GM Chevrolet Trailblazer 2WD
    6 cyl, 4.2 L, Auto(4), Regular 16 22 $2502

    GM GMC Envoy 2WD
    6 cyl, 4.2 L, Auto(4), Regular 16 22 $2502

    GM GMC Envoy XL 2WD
    6 cyl, 4.2 L, Auto(4), Regular 15 20 $2646

    6 Cylinder Engine, 4 Wheel Drive

    Toyota Highlander 4WD Hybrid
    6 cyl, 3.3 L, Auto(5), Regular 31 27 $1553
    * Average User MPG 24.9; MPG Range 21 to 29

    Toyota Lexus RX 400h 2WD Hybrid
    6 cyl, 3.3 L, Auto(5), Regular 31 27 $1499
    * Average User MPG 24.8; MPG Range 22 to 31

    Toyota RAV4 4WD
    6 cyl, 3.5 L, Auto(5), Regular 21 28 $1877

    Toyota Highlander 4WD
    6 cyl, 3.3 L, Auto(5), Regular 18 24 $2142

    Toyota Lexus RX 330 4WD
    6 cyl, 3.3 L, Auto(5), Premium 18 24 $2292

    Honda Pilot 4WD
    6 cyl, 3.5L, Auto(5), Regular 17 22 $2367

    Toyota Lexus RX 330 4WD
    6 cyl, 3.3 L, Auto(S5), Premium 18 24 $2408

    Toyota 4Runner 4WD
    6 cyl, 4 L, Auto(5), Regular 17 21 $2502

    GM Chevrolet Trailblazer 4WD
    6 cyl, 4.2 L, Auto(4), Regular 15 21 $2502

    GM GMC Envoy 4WD
    6 cyl, 4.2 L, Auto(4), Regular 15 21 $2502

    GM GMC Envoy XL 4WD
    6 cyl, 4.2 L, Auto(4), Regular 14 20 $2813

    6 Cylinder Engine, All Wheel Drive

    GM Saturn Vue AWD
    6 cyl, 3.5L, Auto(5), Regular 19 25 $2142

    Subaru Outback AWD
    6 cyl, 3 L, Auto(S5), Premium 19 26 $2191

    Subaru Outback Wagon AWD
    6 cyl, 3 L, Auto(S5), Premium 19 26 $2191

    GM Buick Rendezvous AWD
    6 cyl, 3.5 L, Auto(4), Regular 18 23 $2250

    GM Chevrolet Equinox AWD
    6 cyl, 3.4L, Auto(5), Regular 18 23 $2250

    GM Pontiac Torrent AWD
    6 cyl, 3.4L, Auto(5), Regular 18 23 $2250

    Subaru B9 Tribeca AWD
    6 cyl, 3.0L, Auto(5), Premium 18 23 $2408

    GM Cadillac SRX AWD
    6 cyl, 3.6 L, Auto(S5), Regular 15 22 $2502

    GM Buick Rainier AWD
    6 cyl, 4.2 L, Auto(4), Regular 15 21 $2502

    GM Saab 9-7X AWD
    6 cyl, 4.2 L, Auto(4), Regular 15 21 $2502

    8 Cylinder Engine, 2 Wheel Drive

    GM Buick Rainier 2WD
    8 cyl, 5.3 L, Auto(4), Regular 16 22 $2502

    GM Chevrolet Tahoe 1500 2WD
    8 cyl, 5.3 L, Auto(4), AFM, Regular 16 22 $2502

    GMC Yukon 1500 2WD
    8 cyl, 5.3 L, Auto(4), AFM, Regular 16 22 $2502

    GM Chevrolet Trailblazer 2WD
    8 cyl, 5.3 L, Auto(4), Regular 16 21 $2502

    Toyota 4Runner 2WD
    8 cyl, 4.7 L, Auto(5), Regular 17 20 $2502

    GM GMC Envoy 2WD
    8 cyl, 5.3 L, Auto(4), Regular 16 22 $2502

    GM GMC Envoy XL 2WD
    8 cyl, 5.3 L, Auto(4), Regular 16 20 $2502

    GM Chevrolet Suburban 1500 2WD
    8 cyl, 5.3 L, Auto(4), AFM, Regular 15 21 $2646

    GM Chevrolet Suburban 1500 2WD
    8 cyl, 5.3 L, Auto(4), Regular 15 21 $2646

    GM GMC Yukon XL 1500 2WD
    8 cyl, 5.3 L, Auto(4), AFM, Regular 15 21 $2646

    Toyota Sequoia 2WD
    8 cyl, 4.7 L, Auto(5), Regular 15 18 $2813

    GM Cadillac SRX 2WD
    8 cyl, 4.6 L, Auto(S5), Premium 15 21 $2831

    GM Chevrolet Trailblazer 2WD
    8 cyl, 6 L, Auto(4), Premium 15 19 $3009

    8 Cylinder Engine, 4 Wheel Drive

    GM Chevrolet Tahoe 1500 4WD
    8 cyl, 5.3 L, Auto(4), AFM, Regular 16 21 $2502

    GM GMC Yukon 1500 4WD
    8 cyl, 5.3 L, Auto(4), AFM, Regular 16 21 $2502

    GM Chevrolet Trailblazer 4WD
    8 cyl, 5.3 L, Auto(4), Regular 15 21 $2646

    GM GMC Envoy 4WD
    8 cyl, 5.3 L, Auto(4), Regular 15 21 $2646

    GM Chevrolet Suburban 1500 4WD
    8 cyl, 5.3 L, Auto(4), AFM, Regular 15 20 $2646

    GM GMC Yukon XL 1500 4WD
    8 cyl, 5.3 L, Auto(4), AFM, Regular 15 20 $2646

    GM GMC Envoy XL 4WD
    8 cyl, 5.3 L, Auto(4), Regular 15 20 $2646

    Toyota 4Runner 4WD
    8 cyl, 4.7 L, Auto(5), Regular 16 19 $2646

    Toyota Sequoia 4WD
    8 cyl, 4.7 L, Auto(5), Regular 15 17 $2813

    Toyota Lexus GX 470 4WD
    8 cyl, 4.7L, Auto(5), Premium 15 19 $2831

    Toyota Lexus LX 470 4WD
    8 cyl, 4.7L, Auto(5), Regular 13 17 $3002

    Toyota Land Cruiser Wagon 4WD
    8 cyl, 4.7L, Auto(5), Regular 13 17 $3002

    8 Cylinder Engine, All Wheel Drive

    GM Buick Rainier AWD
    8 cyl, 5.3 L, Auto(4), Regular 15 21 $2646

    GM Saab 9-7X AWD
    8 cyl, 5.3 L, Auto(4), Regular 15 20 $2646

    GM Cadillac SRX AWD
    8 cyl, 4.6 L, Auto(S5), Premium 15 20 $2831

    GM Cadillac Escalade AWD
    8 cyl, 6.2L, Auto(4), Premium 13 19 $3212

    GM GMC Yukon Denali 1500 AWD
    8 cyl, 6.2L, Auto(4), Premium 13 19 $3212

    GM Chevrolet Trailblazer AWD
    8 cyl, 6.0L, Auto(5), Premium 14 17 $3212

    GM Cadillac Escalade ESV AWD
    8 cyl, 6.2L, Auto(4), Premium 13 18 $3212+

    ========

    >>

  68. Movie Guy says:

    Barry,

    Did you bother to review the latest that I posted at your personal request?

    Obviously, your staff could have pulled the data together prior to your main post remarks. But, apparently that didn’t happen.

    My time is as valuable to me and my global corporate clients as is your time. That I provided information to you as a courtesy was my decision in honoring your personal request.

    The very least that I expect from you is a simple acknowledgment that you read the entire post, and now understand where Toyota, Honda, and Subaru stack up with General Motors light trucks and SUVs on fuel economy statistics from the federal government.

    So, what’s the story, Barry?

  69. snook says:

    like I mentioned last week…has anyone priced your replacement tires lately. funny thing happened on the way to the automobile bottom line: They have a ton (no pun) of plastic in them these days. Notice what happened to plastic prices in general lately…or, specificly after the DOW execs bought stock?

  70. Movie Guy says:

    Where is your follow up post on Ford’s announcement on Friday?

    What’s the problem? Cat got your tongue?

    And you still haven’t acknowledged the fact that I posted the above information.

    Why ask for data if you don’t acknowledge it? Rather disingenuous.