Category: Sales

By on June 12, 2017

Mountain Chevrolet GM dealer Glenwood Springs, Colorado - Image: GMAfter U.S. sales of new vehicles declined 2 percent, year-over-year, through the first five months of 2017, forecasters surveyed by Bloomberg are largely in agreement. 2017 will fall well short of 2016’s record auto industry output, sliding to 17.2 million sales from more than 17.5 million in 2016.

There are nevertheless a handful of positives on which optimistic automakers can draw. First, a 17-million-unit sales year still represents a huge number of sales for manufacturers that averaged 12.5 million sales between 2008 and 2012.

Second, the high incentive spending doesn’t appear to be growing higher. Pair that with high average transaction prices and automakers can still earn big profits.

Third, if Washington ever does get around to legislating — no sure bet in this investigative congressional age — then promised tax cuts and infrastructure programs could further elevate demand.

In the meantime, there are causes for concern. Read More >

By on June 10, 2017

Mitsubishi Lancer GT, Image: Mitsubishi Motors

If you were to walk into a Mitsubishi showroom in the United States today, you’d be treated to two passenger cars, two utility vehicles and promises of more utility vehicles to come. Why, the 2018 Eclipse Cross is on the way! You know, the compact crossover named after a entry-level sports car?

If you’re looking for a Mitsubishi-branded car with more than three cylinders that won’t be extinct in a few months, you’re out of luck. In fact, if you’re hoping for any word on whether the brand will ever bring a new car to North America, you’ll have to wait until this fall, around the same time the long-in-the-tooth Lancer bows out of the U.S. market. Read More >

By on June 8, 2017

2017 Chevrolet Malibu - Image: GMThe U.S. auto industry is shrinking. But only by a little bit.

Auto sales through the first five months of 2017 are down just 2 percent, a drop of roughly 140,000 sales across the entire industry. Aside from high inventories and rising incentives, it’s not all doom and gloom. 2016 was the highest-volume year in the history of the American auto industry — a 2-percent drop is hardly catastrophic.

This is therefore not 2009, when virtually every new vehicle suffered decreased volume. Many new vehicles are surging, selling significantly more often this year than last.

But in a declining market, many other nameplates are in fact losing sales. Many sales. We’ve compiled a list of the 10 volume nameplates losing U.S. sales most rapidly. Read More >

By on June 8, 2017

2017 Genesis G90 - Image: Genesis Motors

Genesis Motors is soon to complete its first year on the U.S. market.

Through the first ten months of its run as Hyundai’s luxury spin-off, 15,254 copies of the Genesis G80 and Genesis G90 have been sold. That’s 15,254 buyers who all moved over from other auto brands. There was no other way — no repeat business, no C-Class to E-Class to S-Class-style chain reaction.

More of those buyers moved over from the Hyundai brand than anywhere else. That makes sense. The Genesis G80 is essentially a second-generation Hyundai Genesis sedan. The Genesis G90 is a second-generation replacement for the Hyundai Equus. Hyundai buyers are trading in and trading up.

But when it comes to earning conquests from luxury rivals, Genesis Motors does so most often at the expense of Genesis’ forerunner, the last brand to do what Genesis wants to do. Read More >

By on June 8, 2017

2017 Subaru Impreza 5-door Sport - Image: SubaruSubaru of America set an all-time annual sales record in 2009.

You remember 2009, though you’d likely prefer to forget it.

The auto industry all but collapsed as the global economy went into meltdown. After total U.S. new vehicle sales volume fell to a 25-year low in 2008, sales tumbled a further 21 percent in 2009, the worst year for auto sales since 1982.

And yet Subaru of America set a sales record in 2009.

2017 is no 2009. But after surging to record levels in 2016, the U.S. auto industry’s sales volume is once again shrinking, albeit modestly. But Subaru of America president Tom Doll told Automotive News, “We certainly think we’re going to have our ninth consecutive year of record sales.”

No doubt. Read More >

By on June 7, 2017

cars on a street, public domain

There has been plenty of doomsday prophecies surrounding the automotive industry in the last year, based largely upon the assumption that younger drivers are less willing to support it or simply cannot afford to. Stupid, right? Not really. While the direness of the situation is often exaggerated, plenty of evidence exists to underscore the impending troubles of the new car market. Whether it’s because those in their salad days don’t care as much about cars as their elders or simply have less disposable income (hint: it’s the second one), real change is coming for OEMs.

Younger shoppers are noticeably more likely to purchase used vehicles than their more venerable contemporaries are, but “young” is a relative term — especially in this instance. According to a recent study, 53.7 percent of prospective buyers under forty plan on getting a used car the next time they need wheels. For those over forty, that number is 49.7 percent. As you’d expect older people to buy more new cars, this much of a disparity at mid-life is significant.  Read More >

By on June 7, 2017

2017 Toyota Camry SE - Image: Toyota“Stepping up to a midsize is basically a no-brainer for buyers at this point,” CarsDirect’s senior price analyst Alex Bernstein tells TTAC.

With demand for midsize sedans drying up, deals on aging models are warming up.

Now in its sixth model year, the 2017 Volkswagen Passat 1.8T S — the entry-level Passat — is available in June for a 36-month lease at $189 per month and $1,999 due at signing.

The 2017 Honda Accord, a new version of which is due later this year, is also available in June in basic LX trim on the same terms.

Meanwhile, the mid-grade 2017 Toyota Camry SE 2.5, set to be replaced in the coming months by an all-new model, is likewise available in June for $189 per month with $1,999 down over 36 months.

“This is about as cheap as lease deals have ever been on these midsize sedans,” Bernstein says. But it actually gets even cheaper, marginally cheaper, according to CarsDirect’s examination of 500 lease deals. Read More >

By on June 7, 2017

2018 Volkswagen Golf Alltrack - Image: Volkswagen

You didn’t seriously think there was a tall, be-cladded wagon that could sell like a Subaru Outback, did you?

And you didn’t think — if such a tall, be-cladded wagon did have the potential to sell as well as a Subaru Outback — that it would be a Volkswagen Golf Alltrack?

Of course you didn’t, not in this post-diesel scandal world. But as the all-conquering Subaru Outback continues to enjoy increased U.S. demand, the latest Outback alternative is already suffering a mild case of DTWS.

Not Dancing With The Stars. Don’t read so fast.

Decreased Tall Wagon Sales.

The Volkswagen Golf Alltrack’s May 2017 performance of only 1,312 sales represented a six-month low. Read More >

By on June 6, 2017

Alfa Romeo Stelvio, Image: Fiat Chrysler Automobiles

Alfa Romeo’s long-awaited Giulia sports sedan is finally trickling down to U.S. buyers in larger numbers and a performance-oriented Stelvio SUV should arrive this summer. You’d think cautious optimism for the re-introduced brand would be the order of the day. Instead, there’s massive optimism coming from Fiat Chrysler Automobiles CEO Stergio Marchionne and nothing but caution from industry analysts.

There’s also plenty of disagreement on how well the two vehicles will sell, and reality is leaning increasingly towards the analysts. Read More >

By on June 6, 2017

Capitol Hyundai San Francisco dealer - Image: Hyundai

Updated at 10:00pm on June 6 with response from Hyundai.

Derrick Hatami, Hyundai Motor America’s vice president of sales for less than two years, has been removed from Hyundai’s leadership team as of today, June 6, 2017.

After record annual volume in the 2016 calendar year, Hyundai’s U.S. sales have been falling fast throughout 2017. Year-over-year, Hyundai volume declined in each of the last six months, including an 18-percent decline in May 2017.

That decline enabled partner brand Kia to outsell Hyundai for the first time in the brands’ U.S. history, evidently a source of embarrassment for Hyundai. Having already forced out the company’s U.S. CEO, Dave Zuchowski, just before Christmas last year after Hyundai’s rapid growth stalled, Derrick Hatami’s departure leaves a hole that will be filled in the interim by Hyundai’s southern regional general manager, Sam Brnovich, according to Automotive News.

Last week, Hyundai wasn’t short on excuses for the company’s poor May performance. This week, the excuses were apparently not good enough. Read More >

By on June 6, 2017

2017 Mazda 3 5-door – Image: Mazda

About three weeks ago, my Question Of The Day focused on public statements about Mazda’s future plans. The statements came from the CEO of Mazda North America, as reported in an article by Tim Cain. Many of you responded and agreed with the assertions and opinions I put forth, while some were brave enough to disagree. By and large, it was a fairly productive conversation, with over 150 replies in the comments.

Now that some time has passed and the comments have largely ceased, I can fulfill a request made by commenter slow_poke: a summation of your top recommendations, in our first Mazda QOTD FU (follow-up). Let’s see what you had to say.

Read More >

By on June 5, 2017

2017 Honda Civic hatchback & 1977 Honda Civic hatchback, Image: Honda CanadaCanadian auto sales surged to record levels in May 2017, surpassing the previous monthly record from April of last year by an 8-percent margin and topping 200,000 units for just the second time in history.

You know it’s going well when, in a virulently anti-car market, passenger car sales increase, year-over-year. And in the fifth month of 2017, car sales did indeed improve, growing 3 percent beyond May 2016 levels.

You know it’s truly going well when, in a market that had already seen pickup truck market share climb to 20 percent, pickup truck sales jumped 38 percent to form 22 percent of the industry’s volume.

And you know it’s going exceptionally well when, in the span of just one month, the relatively small Canadian market purchases and leases 217,000 new vehicles at significantly higher prices than in the past. Read More >

By on June 5, 2017

2017 Buick LaCrosse rear - Image: Buick

There was plenty to like about Buick’s heavily revised 2017 Buick LaCrosse when it debuted last year, but the shrinking passenger car market rubbed some of the shine off the full-sizer’s standard features and newfound efficiency. It also propelled sales further downhill.

Buick isn’t resting on its laurels for the generation’s sophomore year. For 2018, Buick’s eAssist mild hybrid system returns to the LaCrosse after a year’s absence, joined by a new transmission in V6-powered models and a starting price designed to lure more buyers into the showroom. Read More >

By on June 5, 2017

2017 Ram 1500 Rebel Blue Streak, Image: FCA

Ford’s F-Series is the undisputed king of the domestic pickup market. It’s high atop the mountain, looking down upon its rivals as they savagely bludgeon each other with gnarled branches. For years, the majority of that abuse fell on Ram. Then, all of a sudden, 2017 came and Chevrolet ended up with a broken nose. In the primeval battle of truck sales superiority, Chevy’s Silverado no longer occupies the second place position for full-size pickups. Ram does.

Alright, it isn’t quite that dramatic. General Motors’ truck offerings aren’t exclusive to the Silverado and the automaker still outsold Fiat Chrysler when factoring in pickup deliveries from its GMC division. However, we’re counting this as a victory for Ram because FCA needs one — and overtaking Chevy sales isn’t exactly small potatoes. This is a major leap forward for a brand that seemed perpetually in last place.  Read More >

By on June 2, 2017

2017 Volkswagen Passat, Image: Volkswagen

The Volkswagen Passat has a roomie.

Production of the Volkswagen Atlas, Volkswagen of America’s first three-row SUV and the automaker’s first three-row vehicle since the Dodge Grand Caravan-derived Volkswagen Routan fled the scene in 2014, began earlier this year in Chattanooga, Tennessee, previously known as the Passat’s factory.

The first 1,610 copies of the Atlas were sold in May 2017.

Volkswagen, which built the Tennessee assembly plant as part of a goal that would see the brand selling 800,000 vehicles in America per year by 2018, originally intended to build 150,000 vehicles annually in Chattanooga. Only half that capacity was used last year.

If the Volkswagen Atlas becomes the hit the Volkswagen Passat never was, what might that say about the North Americanized Volkswagen Passat’s future?  Read More >

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