Gas prices not affecting car buyers' habits — yet

SOUTHFIELD, Mich. — Gas stations advertising record-high prices are all around him, but fuel efficiency was the furthest thing from Dave Pongratz's mind as he picked up his new Hummer H3 in this Detroit suburb on Wednesday.

Pongratz, 54, was getting the sport utility vehicle as a surprise for his wife, Sandy, an avid camper and kayaker who wants a safe vehicle with good towing capacity. The H3's gas mileage — about 19 miles per gallon in the city — wasn't an issue for Pongratz, who said he'd rather go to fewer restaurants than buy a vehicle with higher fuel economy.

"Everybody decides, 'What do I want to trade for what I want to do?' " said Pongratz, a plant foreman for General Motors Corp., which makes the Hummer.

Gas prices soared to a record $2.55 per gallon nationwide last week, and some areas already are seeing prices at or above $3 a gallon. But automakers and industry watchers say the price spike isn't yet affecting consumers' car buying habits.

Automakers won't release August sales figures for another two weeks, but they say many customers seem to have Pongratz's attitude. Kevin McCormick, a spokesman for DaimlerChrysler AG's Chrysler Group, said the company isn't seeing a slowdown in any segment, including its popular pickup trucks. Toyota Motor Corp. also said gas prices don't seem to be affecting sales.

Ford Motor Co.'s U.S. sales analysis manager, George Pipas, predicts August will be a strong month for the industry, although not as strong as June and July. But it's too early to conclude that a slowdown in August is due to high gas prices, Pipas said.

Instead, many people bought vehicles earlier this summer, when the Big Three introduced discount programs that let customers buy 2005 vehicles at the employee price. Ford and GM plan to end those discounts Sept. 6; Chrysler is continuing its discount indefinitely.

"We had this tidal surge in July," Pipas said. "That's not going to be duplicated in August."

At Junction Auto Family in Chardon, Ohio, GM truck dealer Ed Babcock said his sales will probably be down in August, but he doesn't blame gas prices.

"In the past when gas prices have gone up, we've not seen the change in sales," Babcock said. "If I had them, I think I could sell them."

Pipas said gas prices will affect the market by accelerating a trend toward crossovers and smaller vehicles that automakers have been seeing for several years. Ford has introduced a crossover and several hybrid vehicles to meet that demand, but won't bring new products out any faster because of gas prices.