FLAB IN THE MUSCLE GAS PRICES, ROLLOVERS STALL SUV SALES.

Byline: Brent Hopkins Staff Writer

WESTLAKE VILLAGE - Sales of the muscular sport utility vehicle show signs of weakness in a J.D. Power survey released Thursday, which says SUVs are sitting longer on dealers' lots and require higher incentives to seal deals.

But no one is predicting SUVs will go the way of the Edsel.

Since emerging in the mid-1980s, sport-utes have been wheels of choice for campers, parents and anyone with a Costco card, accounting for nearly one-quarter of all vehicle sales nationwide in 2003.

While SUVs remain popular, they have a number of factors against them. With gasoline prices cresting the $2 mark in much of the country this year and remaining high throughout the summer, the poor fuel-efficiency ratings of some of the largest SUV models make them a tougher sell. Smaller models, which are more competitive with sedans' gas mileage, may be caught up in the slowdown as well though.

Further depressing sales are persistent questions of safety. This week, the National Highway Traffic Safety Administration released figures for the first time showing that sport utilities are more prone to roll over in crashes than sedans.

And with automakers introducing more muscular cars, like the Dodge Magnum and Chrysler's revamped 300 sedan, power-hungry drivers have new options outside the SUV world.

This July, SUVs sat on lots an average 73 days before selling, a 13-day increase over the same period a year ago, according to a study by J.D. Power & Associates' affiliate Power Information Network. While new- vehicle prices have increased slightly, average SUV transaction prices dropped 2 percent from those last July. In an attempt to fight back, manufacturers jacked up incentives 12 percent over their June mark - nearly double the overall average - to an average $3,440.

``It's not as fun to buy an SUV anymore,'' said Wes Brown, a partner in Iceology, a Westwood-based car manufacturer consultant. ``The gas mileage is awful. You can't go around corners as quickly. You have to sacrifice things to drive an SUV, and people are saying (they) don't want to sacrifice anymore. It's cool to buy a car again.''

While finding signs of weakness in sales of SUVs, the senior director of PIN's industry analysis, Tom Libby, countered: ``This isn't the end of their world by any means.''

Local dealers agree that manufacturers have had to sweeten the deal to ease the trucks out of the showroom, but most don't fear that their lucrative SUV business will dry up soon.

``It's a big part of our business,'' said Gus Garcia, general manager of the Rydell Automotive Group. ``Southern Californians love their SUVs, so things haven't slowed down significantly. If the gas prices did anything to demand, they're offering such good rebates and discounts, it hasn't really hurt us.''

Even with nearby gas stations' pump prices still above $2 and window stickers promising 13 miles per gallon, SUVs still remain strong sellers on Van Nuys Auto Row. Libby said the national data might not reflect the same trends seen in Los Angeles, which often bucks convention.

``It's where the money is,'' said Michael First, a sales manager at Miller Nissan. ``You're in Southern California. People will buy them because they want to look good, even if they go broke in the process.''

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com

CAPTION(S):

photo, box

Photo:

(color) General Motors sport utility vehicles await buyers on a Rydell Automotive Group lot in Van Nuys. SUV sales show signs of slipping nationwide.

Andy Holzman/Staff Photographer

Box:

SUV SLUMP

Source: Power Information Network, LLC 

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