When gas was cheaper, Americans were sold on the idea that bigger is better. With $4 gas now here, many people believe smaller cars are the way to go. That’s having a big effect on both dealers and truck owners. It doesn`t matter what you’re selling, the law of supply and demand always applies. Right now, the supply for new and used trucks and SUVs is high, and demand is drying up.

Truck and SUV drivers are having a tough time filling up. So car dealerships across America are filling up… with gas-guzzlers. For the first time in years, new car sales are out numbering truck sales. The situation is similar at both Cedric Theel Dodge Toyota and Bill Barth Ford.

“Now instead of selling 60% SUVs and trucks, we might only be doing 30%,” notes Justin Theel of Cedric Theel Dodge Toyota.

Ryan Barth of Bill Barth Ford adds, “A lot of smaller cars are completely sold out of new.”

Trucks sales have slowed so much that Ford has taken the unprecedented step of delaying the introduction of it’s new redesigned 2009 Ford F-150 so that dealerships can unload all of the ’08s that piling up on lots. That means big rebates and good deals on new trucks which also means it might be a good time to look at buying used.

Barth says “Price is down a lot so it’s really a great time to buy a used truck because the big rebates on the new make the used a lot less.”

It’s also a bit of a problem. More people are trying to trade-in their trucks and SUVs to get something smaller, and they’re getting less money back. And that’s only if you find a dealer willing to buy your trade to begin with.

Theel says, “For the most part, yes, we are still taking all trades. Now there are things where we look at our inventory and we see that we have three or four of a certain one that at this time, no, we won’t be taking it.”

Barth says, “We take any trade you know it might not be what you want to see for it, but we’ll take it.”

Whether you’re buying new or used, both dealers say now is the time to find good prices.

If you’re thinking of trading in your SUV or truck to buy a car, you might want to think twice because you’ll get less than usual for your trade, and cars are currently selling for a premium.

 The Ford Escape has been thoroughly updated for 2008, reinforcing the character and appeal that have made it America’s perennial best-selling small sport-utility vehicle. The improvements nearly cover the spectrum, and inject a new level of refinement. The Escape’s standard safety features are upgraded significantly for 2008.

We’d call the Escape a little truck among small SUVs. Its new styling deliberately invokes Ford’s larger, truck-based Expedition and Explorer sport-utilities. Escape’s ride height and seating position are a bit higher than competitors such as the Honda CR-V, and it can tow up to 3,500 pounds, which is substantially more than most other vehicles in the class.

Yet the Ford Escape still delivers the advantages of unit-body, car-based competitors such as the Honda CR-V. Its smooth ride and agile handling make for enjoyable driving, and its compact dimensions make the Escape easy to park.

The base four-cylinder is adequate for all-purpose driving while the V6 offers quicker acceleration performance. All variants, including the V6 and Escape Hybrid, deliver some of best EPA mileage ratings in the class. All, including the gas-electric Hybrid, are offered with either front- or all-wheel drive. For the most part, the Hybrid drives just like a conventional gas-only Escape. It’s a well-executed package. It offers better fuel economy and lower emissions but demands little additional effort or knowledge from the driver.

The new 2008 Ford Escape still provides comfortable seating for four, or five in a pinch, but with noticeably more headroom than in pre-2008 models. Folding the rear seats opens a good sized cargo area with a flat floor, and space behind the seat surpasses that in the trunk of the typical sedan. Interior storage options have improved considerably. The finish is more upscale and pleasing, and feature function and switches are among the best.

Safety features that were extra-cost options on lower-trim models are now standard across the board, including Ford’s Roll Stability Control system. Escape now sets the class benchmark for safety features.

There’s a Ford Escape model for most tastes and needs. They range from a decently equipped, four-cylinder Escape XLS 2WD for under $19,000 to the leather-upholstered Escape V6 Limited 4WD, with premium audio, navigation, dual-zone auto climate control and reverse sensing for about $30,000. Dollar for feature, Ford Escape prices have dropped considerably the past few years. The premium for the Escape Hybrid has also decreased. It’s now less than $2,000 more than a comparably equipped Limited.

The Ford Escape remains one of the more appealing vehicles in its class, regardless of price, and certainly one of the better values. Those shopping for a small SUV should put it on their short list, especially those who appreciate its big-truck styling.

If paying $4 a gallon at the pump doesn’t sour you on driving a full-sized sport utility vehicle, now is the time to buy one.

Dealers are offering tempting incentives on trucks and full-sized SUVs, and used models are on sale at clearance pricing. That’s primarily because many motorists are abandoning the gas guzzlers for compact cars or hybrids that get better gas mileage.

“The more there is, the less they’re worth. Supply and demand,” said Gerry Perrault, new car manager at Serafini Nissan Volvo in Vestal. “Everyone’s looking to bail out of them and it just brings the value of them down significantly.”

As gas prices approached and surpassed $4, major shifts occurred in the marketplace. Nationally, automakers are struggling financially and slowing production of fuel-consuming vehicles, including the formerly popular Ford F-150 truck. Ford, GM and Chrysler all recently reported double-digit declines in full-sized SUV and truck sales.

Meanwhile, cars are flying off dealers’ lots, and some prices are climbing because of increased demand.

“I’ve never sold more cars here — ever,” Perrault said. “I wish I had more inventory.”

Today, a shopper who peruses the lot of a used car dealership can see recent model SUVs selling for only a few thousand dollars more than an older-model gas-sipping sedan.

For example, at Mark’s Auto Sales in Endicott, you can buy a 2004 Nissan Sentra with 70,000 miles for about $8,000. Or, you can buy a 2005 GMC Envoy with 42,000 miles for a little more than $10,000.

The Sentra, with a highway rating of about 27 miles per gallon, is priced about $1,000 more than it would have been six months ago, a dealer said. Meanwhile, book value on the SUV, which gets about 19 mpg on the highway, is about $18,000 — 44 percent higher than today’s actual selling price.

“I’ve been at it 30 years and I’ve never seen a market swing of that magnitude,” said Mark Ogozaly, owner Mark’s Auto Sales on Harrison Avenue.

Though nationally, SUV sales have slowed, Ogozaly said he has sold 50 percent more of the vehicles this year compared to last year. For some customers, the reduced price of a loaded SUV is tempting, especially since months ago the traditionally expensive vehicles may have been out of a buyer’s price range, he said. For other customers, who might have large families or more space needs, lifestyles can’t always be squeezed into a small vehicle.

“Not everybody can drive around in a subcompact,” Ogozaly said.

Endwell resident Jim Coyle recently spent about $10,000 on a used 2006 Buick Rainier at Mark’s. Spending more for a hybrid vehicle wasn’t worth it to Coyle, he said, since he figured it would take 10 years before his gas savings broke even with the cost of the fuel-efficient car.

“We only drive like 10,000 miles a year,” Coyle said. “It’s comfortable; it’s not economical for sure. It only gets 14 miles a gallon.”

Not only will full-sized SUV shoppers get a good price, but they’ll also have a lot of choices, unlike customers looking for cheap used cars. The used car lot at Serafini Nissan Volvo is jammed with SUVs and trucks, making up about 75 percent of the inventory, Perrault said.

Manufacturers have raised new cars prices a few hundred dollars because of the demand, he said. Two years ago, the dealership sold three trucks or SUVs to every car. Today, five cars are sold for every one truck or SUV.

“Our inventories are dangerously low right now because of it,” he said.

New car dealers are offering specials, including cash back and gas deals for customers who buy trucks and SUVs. At Miller Dodge, buyers who pick a vehicle from the Dodge line will pay no more than $2.99 for a gallon of gasoline for three years. Buyers interested in a Nissan Titan truck could be offered zero percent financing and a $5,000 rebate. The truck, which starts at $25,000, gets 17 mpg.

Ford Motor Co. said on Friday it would slash output and delay a new version of its top-selling F-150 pickup truck due to a deepening slump in U.S. sales it warned would weigh on results this year and next.

Ford said it would post a deeper loss for its auto business this year and warned it would be difficult to avoid a loss in 2009. That was a weaker outlook than Ford offered just last month when it abandoned a long-held goal of returning to profit by next year in the face of record gas prices and plummeting sales for trucks and SUVs.

The warning weighed on Ford stock and bonds. Ford shares dropped 7 percent on the New York Stock Exchange.

The risk of continued losses raises the prospect Ford could be forced to raise liquidity, possibly through a deal with billionaire Kirk Kerkorian, who owns almost 6.5 percent of Ford and has offered more capital for its restructuring.

“This is a tough situation,” said David Healy, an analyst with Burnham Securities. “They are probably going to do more financing. They might even take money from Kerkorian.”

The struggling No. 2 U.S. automaker raised $23.5 billion in 2006 by pledging almost all of its assets, including the familiar Ford blue-oval logo, as collateral. But that financing was based on a turnaround plan the automaker now says has been thrown off track by the steep downturn in the U.S. market.

LOWERS FORECAST

Ford lowered its forecast for industrywide U.S. auto sales this year to a range of 14.7 million to 15.2 million vehicles, including medium and heavy-duty trucks. That was down from Ford’s already reduced forecast of 15 million to 15.4 million.

In response, Ford said it would cut third-quarter production by 25 percent and fourth-quarter output by up to 14 percent as it throttles back the output of big trucks and SUVs that consumers are increasingly shunning.

Ford also delayed the launch of its new F-150 pickup truck, pushing back by about two months the first sales of the redesigned version of its best-selling vehicle. It said it was taking the unusual and costly step because it needed to sell down inventory of the current F-150 model.

“As gasoline prices average more than $4 a gallon and consumers worry about the weak U.S. economy, we see June industrywide auto sales slowing further, and demand for large trucks and SUVs at one of the lowest levels in decades,” Ford Chief Executive Alan Mulally said in a statement.

Ford said that its finance arm, Ford Motor Credit, would suspend dividend payments to the parent company this year because it expects to post a loss due to the collapse in the auction values of used trucks and SUVs. Those resale values are a crucial component in the way that Ford Credit and other finance companies set the pricing for auto leases.

Ford Credit may need to write down $1.1 billion because of falling values of off-lease vehicles, Lehman Brothers analyst Brian Johnson said in a note for clients on Friday.

KERKORIAN IN FOCUS

The developments mark the first significant setback for Ford since Mulally took over as chief executive in 2006.

Ford lost $2.7 billion in 2007 and $12.6 billion in 2006 and the cornerstone of a restructuring plan Ford calls the “Way Forward” had been a return to profitability by 2009.

But Mulally and Ford have both won an endorsement from Kerkorian, a billionaire investor with a long record as an activist investor in the U.S. auto industry.

Kerkorian, who has invested about $1 billion in Ford, disclosed on Thursday that he had taken a 6.49 percent stake in the automaker. That represented a bigger bet on Ford’s turnaround and came despite more than a 25 percent drop in Ford shares over the past two months.

Kerkorian, Mulally and Ford Executive Chairman Bill Ford Jr. met earlier this week to discuss Ford’s turnaround strategy, a meeting the company described as positive.

Ford said it would provide more detail on the changes to its restructuring plan when it announces second-quarter financial results in July.

In the meantime, the company’s lower production will cut revenue this quarter and next because Ford, like its rivals, books sales when vehicles are produced and shipped to dealers.

Healy said the production cuts would likely reduce Ford’s pretax results by about $1 billion.

“It’s what I call the perfect storm in the auto industry,” he said. “Overall sales are down but the mix has changed rapidly.”

The company’s shares were down 44 cents to $5.88. Ford’s bonds with a 7.45 percent coupon due in 2031 fell to 62.25 cents on the dollar, down from 65.5 cents on Thursday, according to MarketAxess.

With fuel prices just getting higher and higher, everyone just feels the weight of the expense of fueling their cars. If a person who only has one car to maintain feels this burden, the more that truck operators feel this pain that’s burning their pockets. Imagine how many trucks they have to put fuel on day in and day out. Their trucks are on the road most of the day and sometimes even seven days a week.

But the fuel price is not just the only problem that these truck operators and everyone else faces today. The other big problem related to the use of cars is the effects brought about by its fuel fumes to the environment.For these two problems, there is one answer. Hybrid trucks have been developed in response to these two dilemmas. At first, it was tested for military use. And then tests and development continued until these recent years that truck manufacturers have finally announced its soon release dates. These hybrid trucks have been showcased in truck shows.

Two of the leaders in this arena are Peterbilt and Kenworth. Peterbilt is set to release the first hybrid trucks soon. They will be available in shows this year and preorders are accepted as early as now. Peterbilt is also looking into entering a contract with Wal-mart. Should this push through Peterbilt will be getting a big deal Wal-mart being the second largest truck operations in the US today. Kenworth, on the other hand, will be following Peterbilt’s release of hybrid trucks. Even though it showcased its hybrid trucks earlier, the release of their brand will come second to Peterbilt’s. The company has not reported any big prospects as of yet though.

The development and the news of the release of these hybrid trucks has got many truckers excited and eager to make the switch. Others are hesitating though because of the high costs of buying hybrid trucks. Still, with the savings it promises to give truck operators many of them still find it profitable and really worth to invest in these vehicles. Each hybrid trucks is said to give savings to them up to as much as $10,000 every year so it’s just something that truckers think they should have. With such great savings, their business would be more profitable. The expensive upfront cost of buying a hybrid truck would surely be worth it because of the saving in daily fuel expenses.

What’s also nice about using these hybrid trucks is that there would be less harm done in the environment. With the many trucks the truck owners and operators have, the impact would really be great. The environment would be saved and operators will also be able to save on gas money. With these two hand and hand, everybody will come out happier and healthier.

While skeptics are not as sold out on the idea of hybrid trucks, supporters who are very eager to update their trucks with the new hybrid trucks are ordering them already. This stir is quite great that more and more companies are vying replace their trucks with new hybrid trucks.

Ford Motor Corp., the third largest automaker around the world, boasts its stable reign in the truck sales. In the past two years, the automaker sold over 900,000 F-Series pickups. Said figure is 800,000 more per year for the past 8 years. In the past 30 years, no other carmaker has established sales of 800,000 – only Ford.

Doug Scott, Ford Truck Group marketing manager, said, “We’ve accumulated more than 40 awards for F-150 over the past two years. We simply know truck customers better than anyone else.” Scott added, “Leveraging Built Ford Tough and our unrivaled heritage of durability and reliability earned through consistent day in and out performance for Ford Truck customers during the past 58 years is crucial to the truck team’s offense-based game plan.”

Ford F150, best-selling truck in the F-Series, is deemed the bread-and-butter of the company. In its introduction 2004, the automaker flaunted its parts diagram for Ford F150 pickup, which is designed to produce a powerful car that can withstand difficult demands of towing. This year, Ford brought back the Harley-Davidson F-150 and Super Duty versions. Subsequently, it also delivered new chrome packages for both models. The models are also given Sirius Satellite Radio and 20-inch wheels.

According to Todd Lenz, F150 marketing manager, several Ford vehicles like the F150, are already employing flexible powertrain. As a fact, F150 uses a E85 Ethanol, which allows owners to use domestic produced, renewable, inexpensive, and clean alternative to the conventional petroleum-based gasoline. The drawback though is that there is scarce supply of E85 pumps.Ford is considering building concept trucks that utilizes several Ford F250 pickup parts plus other groundbreaking parts and accessories to come up with better trucks. These new vehicles are expected to be displayed at the upcoming North American auto shows.

“Innovation has long been the key to Ford’s success with trucks,” Scott concluded. “While our competitors play catch-up we’re continuing to anticipate the features that matter to the consumer and get there before the other guys do.”Ford trucks are untouched by the ongoing market shift to small, sleek, compact cars. According to auto analysts the secret behind its success is the focus on quality and innovations. The marketplace has long been convinced of the quality of Ford trucks. This is the reason why, for several decades now, Ford is amassing a hefty truck sales.

There are many brands of pickup truck bedliners available. They offer many different features, but they all fall into two basic categories: drop-in bedliners and sprayed-on bedliners. Which is the best for your pickup truck and your needs? Taking a look at the pros and cons for each type of truck bedliner might help you choose the best accessory for your needs.

The pros of drop-in bedliners: Drop-in bedliners are easy to install and can be easily removed. Most have thick, rigid bodies that provide pretty good protection against dents in the bed of your truck. Drop-in bedliners are long lasting and easy to clean. They can mount under the bedrail or can be placed over it to add more protection.

Some drop-in bedliners, like the Bedrug, are made from flexible materials. They are gentler than the rigid models, and even people find them comfortable to sit on. The price can range anywhere from $300-$450. Look closely at each type to determine how much protection it offers.
Cons of drop-in bedliners: Some drop-in bedliners can shift around and rigid versions can scuff the paint underneath. Dirt and sand can get behind a drop-in liner, making scratches even more likely if you don’t keep the area clean. Drop-in bedliners can be gouged or broken, but they can take a lot of abuse before the truck bed is affected.

Pros of sprayed-on bedliners: Sprayed-on bedliners stick to your truck’s body panels, so they can not shift around. There are no gaps between the liner and the bed of the truck, so sand and water can not get between and rust or erode your truck bed. They are not as thick as drop-ins, but they do minimize minor denting. The sprays can be applied to any body panel, including interior or floor panels. Sprayed-on liners are easy to clean and available in many colors. You might prefer their sleeker look. Cost can range between $90 for do-it-yourself kits to $450 for professional installation. This also depends on the size truck you have.

Cons of sprayed-on bedliners: Sprayed-on bedliners can’t be removed. They aren’t as thick as drop-ins, so it’s more likely that dropping something sharp or heavy will dent or gouge the liner and the truck bed underneath. Hard-to-remove stains, such as spilled paints, may become a permanent part of your truck bed. A sprayed-on liner should be applied by a professional if you want a truly professional appearance.

Bottom Line is that there are more aftermarket bedliner choices now than there have ever been. You must ask yourself several questions to decide which type is the right one for you. How do you use your truck? Do you expect the bedliner to protect your truck from constant hauling of heavy objects? Do you need only minimal protection for occasional use? Is the bedliner strictly for looks? Study as many online resources as you can find, then visit local bedliner distributors. Ask questions about each bedliner as it pertains to your needs to sort out which is the best for you.

Report that up to 12% of carmaker’s salaried staff may be involuntarily laid off follows bonus payouts.

News that Ford Motor Co. is planning to lay off as much as 12 percent of its U.S. salaried work force by the end of July came as a blow to employees at the automaker’s world headquarters.

In discussions with more than a dozen Ford salaried workers Wednesday, a picture emerged of a work force on the edge and hungry for more information.

One 14-year Ford veteran said she had three phone conversations about the layoffs before arriving at work Wednesday.

“I get to work and a co-worker kind of whispers to me, ‘You’ll tell me anything as soon as you know anything, right?’?” said the woman who, like the others, asked that her name not be used because she feared losing her job.

“People are texting like mad,” said another woman, who has worked at Ford for seven years, as she emerged from a Michigan Avenue restaurant wearing a Ford ID.

As The Detroit News first reported Wednesday, a human resources executive in Ford’s sales, marketing and service division said the cuts will be involuntary and are expected to affect about 10 percent — but potentially as much as 12 percent — of the company’s salaried work force.

Ford would not confirm the figure, saying only that details are still being finalized. Ford says it will release those details in July and hopes to complete this round of downsizing by August.

But other Ford managers told The News that they have been instructed to plan for cuts in the same range. That could put more than 2,000 white-collar workers at risk of losing their jobs this summer.

Several workers said they want to know how Ford will decide who goes and who stays. They also want to know if the automaker will provide any financial assistance to those employees it lets go.

Spokesman Mark Truby said the company offers a financial package for involuntary layoffs that provides severance pay based on years of service, as well as other benefits. He said these benefits will be extended to workers affected by this round of layoffs.

One salaried worker in Ford’s product development division said news that this round of cuts will be involuntary was hard to swallow, particularly in the wake of the big bonuses Ford paid out just a few weeks ago.

“A month ago, everybody was feeling pretty good. Now, there’s a lot of disappointment,” he said. “They’re not treating us like the hourly people. It leaves a bad taste in your mouth.”

Ford is planning more voluntary buyouts for blue-collar workers as it struggles to match its U.S. factory output with shifting consumer demand.

“We hit the wall, I guess,” said one 15-year veteran. “What makes it so scary is that it’s not like there’s a whole lot of places to go look for new work.”

Analysts say the cuts are necessary to ensure Ford retains sufficient liquidity to fund its ongoing restructuring effort.

Analyst Nathan Spunt of Fitch Ratings said the cuts are bound to be painful for workers and their families, but said he is encouraged to see the company taking steps to respond to what he called “a difficult economic environment.”

“It’s very quick,” he said. “It shows they’re doing what they can to preserve liquidity.”

Even some of the workers who could be affected by the downsizing are encouraged by the steps Ford is taking to keep its turnaround from stalling.

“We’ve had enough good news to be optimistic,” said Michael Kelly, who works in product development, pointing to Ford’s surprise $100 million first-quarter profit and new vehicles launching later this year. “But it makes you think, ‘Gee, I’ve got to work even harder. I don’t want to be one of those 12 percent.”