Tim Kelly

Though gas prices are climbing and the economy is struggling, Chattanooga area car dealers say the market for Hummers and large sport utility vehicles is not suffering.

Dealers say they have not seen sales of large vehicles significantly drop in the wake of increased fuel costs. Yet, as consumers trend greener, some say the reasoning behind vehicle purchases are changing.

Tim Kelly, owner of Kelly Auto Group in Chattanooga, said the middle to lower end of the SUV market is down. Still, he said sales of luxury SUVs are only slightly off with the whole economy.

David Jones, sales manager at Kelly, said SUV sales are down nationwide.

“In our area we aren’t down as much as the national decline,” he said.

Like luxury SUVs, Mr. Kelly said sales of H3 and H2 Hummers have not dropped significantly.

His dealership sells around seven H3 Hummers each month, the smallest made Hummer, and two H2 Hummers monthly, he said.

Lee Belk, general sales manager at Gentry Chevrolet in Chattanooga, said gas prices have not affected its SUV sales.

“People that have in their mind to buy them are still buying them,” he said. “I know gas has been expensive, but it hasn’t affected those that buy (SUVs).”

New technology, such as fuel management systems, have improved gas mileage in some SUVs, and Mr. Belk said some SUVs have mileage as good as cars.

Rather than asking how many miles to a gallon a Tahoe or Suburban has, customers want to know about luggage space and seating arrangements, he said.

“Seating is the biggest part,” he said.

Mr. Kelly said many shoppers, especially those looking at purchasing a Hummer, are concerned about what their neighbors will think about their new car.

“(People) don’t want to pull up to the grocery store and have people roll their eyes,” said Mr. Kelly. “It’s a perception issue.”

However, though Hummers may be perceived as an 8-mile-per gallon gas guzzler, the H3 Hummer gets the same mileage as other vehicles in its class, Mr. Jones said.

“The mileage is not considerably different than any other large SUV,” said Mr. Kelly. “But Hummer has become the whipping boy for a lot of people.”

Mr. Jones said Kelly sells more of the H3.

“It gives you the same look as the H2 but it’s smaller and gets good gas mileage — 14 city and 18 highway,” he said.

For those who can afford a luxury SUV or a Hummer — the H2 sells for $60,000 and the H3 for $30,000 — gas is not really an issue, Mr. Kelly said.

Buyers who want the look of Hummer but don’t want to be pegged as a polluter, will welcome the ethanol-powered Hummer which General Motors plans to release in the coming year, he said.

“That would relieve a lot of people’s stress about purchasing a Hummer,” Mr. Kelly said.