NBC NEWS - Could car leasing programs be on the road to extinction?

Starting Thursday, Chrysler’s financial unit will no longer offer lease programs.

On Wednesday, General Motors announced it has suspended incentive leasing in Canada, but not in the U.S.

Rising fuel prices are dragging down values of the once-popular SUV’s and trucks, and car makers are losing profits.

General Motors says it won't put the brakes on U.S. car lease incentives this August, a time when showrooms roll out new vehicles and offer great deals to move last year's models off the lot.

The news followed the announcement GMAC, the financial leasing arm of GM, would end lease programs in Canada and was aimed at reassuring struggling car dealers.

"Its been a tremendous profitable part of our business," said car dealer Alan Helfman.

GM says it will continue to monitor the leasing program, but the company may be taking a side road to Chrysler’s direct route of ending all leasing programs starting Thursday.

Twenty percent of American car buyers lease their vehicle.

The summer of record gas prices has taken its toll on re-sale and lease values of gas guzzling SUV’s and trucks.

Leasing incentives are aimed at giving drivers a lower monthly payment and the option to buy at the end.  But with vehicle values of SUV’s and trucks dropping, dealers and car makers are left holding the keys.

"These things are worth $3-6k less than automakers had forecast them to be worth 24-36 months ago," said Vice President of Forecasting IRN Erich Meckle.

Faced with billions of dollars in losses, the Detroit automakers are racing to keep profits from tanking further.

"All of the big three's turnaround plans had counted on trucks coming back the second half of the year, gas around $2.80 a gallon the economy turning around and people having a bit more confidence, consumer confidence rising.  None of that has happened.” said Aaron Bragman, an analyst with Global Insight.

It's not an ideal situation just as 2009 vehicles get set to debut.