The Truth About Cars » Sales http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Tue, 01 Sep 2015 18:20:13 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.4 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars » Sales http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Fiat Chrysler Posts Sales Gains In August, Keeps 5-year Streak Alive http://www.thetruthaboutcars.com/2015/09/fiat-chrysler-posts-sales-gains-august-keeps-5-year-streak-alive/ http://www.thetruthaboutcars.com/2015/09/fiat-chrysler-posts-sales-gains-august-keeps-5-year-streak-alive/#comments Tue, 01 Sep 2015 17:15:54 +0000 http://www.thetruthaboutcars.com/?p=1157906 Fiat Chrysler Automobiles posted a 2-percent overall gain in sales for August, keeping its 65-month streak of increased sales alive, the automaker reported Tuesday. Jeep jumped the largest amount for the automaker; Jeep reported an 18-percent increase as a brand and four of its models posted sales gains. Sales of Dodge-branded vehicles slid 15 percent overall, and Chrysler-branded […]

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Jeep Compass. Photo courtesy wikipedia.org

Fiat Chrysler Automobiles posted a 2-percent overall gain in sales for August, keeping its 65-month streak of increased sales alive, the automaker reported Tuesday.

Jeep jumped the largest amount for the automaker; Jeep reported an 18-percent increase as a brand and four of its models posted sales gains. Sales of Dodge-branded vehicles slid 15 percent overall, and Chrysler-branded cars fell 14 percent.

FCA reported it sold more than 200,000 vehicles in North America for the second month this year.

The Jeep Compass was the brand’s biggest gainer over August 2014 sales. Compass improved 58 percent over the same month a year ago. Jeep also reported that sales of its new Renegade were up 29 percent over July.

Chrysler-branded cars were down overall, but the automaker said sales of its Chrysler 200 were up 30 percent over last year.

FCA said Ram-branded trucks and vans posted a 6-percent increase, led by its full-size pickup.

(According to the automaker, Fiat 500L sales were up over last year and now I’ve seen everything.)

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Chevrolet Impalas Going Quickly in South Korea http://www.thetruthaboutcars.com/2015/08/impalas-going-quickly-korea/ http://www.thetruthaboutcars.com/2015/08/impalas-going-quickly-korea/#comments Tue, 25 Aug 2015 16:00:05 +0000 http://www.thetruthaboutcars.com/?p=1152169 Buyers in South Korea have flocked to order the Chevrolet Impala by requesting more than 3,000 of the full-size sedans, which is two to three times higher than expected, BusinessKorea is reporting. The higher-than-expected draw in South Korea is part of a larger trend; according to the BBC, just around 6,000 cars were imported in 2000. In 2014, […]

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2014 Chevrolet Impala Exterior-005

Buyers in South Korea have flocked to order the Chevrolet Impala by requesting more than 3,000 of the full-size sedans, which is two to three times higher than expected, BusinessKorea is reporting.

The higher-than-expected draw in South Korea is part of a larger trend; according to the BBC, just around 6,000 cars were imported in 2000. In 2014, more than 196,000 cars were imported into the country, although many of those were European luxury models.

GM Korea forecasted 4,000 to 5,000 Impala models would be sold by the end of 2015, but Korean buyers are ordering 200 cars per day, which would exhaust their supply within one month.

Buyers in Korea are ordering the high-end models, too. The most popular pick for prospective Korean buyers is the 2.5-liter LTZ followed by the 3.6-liter LTZ, according to the report. The 2.5-liter LT is approximately 15 percent of the mix.

A spokesman for Chevrolet said Korea would be receiving Impala models built in Detroit.

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Toyota Asking Dealers To Stop Advertising Below Invoice, World Not Over Yet http://www.thetruthaboutcars.com/2015/08/toyota-asking-dealers-stop-advertising-invoice-world-not-yet/ http://www.thetruthaboutcars.com/2015/08/toyota-asking-dealers-stop-advertising-invoice-world-not-yet/#comments Mon, 24 Aug 2015 19:00:30 +0000 http://www.thetruthaboutcars.com/?p=1151489 At an upcoming dealer meeting in Las Vegas next month, Toyota will ask its dealers to stop advertising cars below invoice in an attempt to help keep residual values higher and keep dealers from competing in a “race to the bottom,” Automotive News is reporting. If accepted, Toyota would join Honda in penalizing dealers who […]

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"Both certified Toyota dealerships -- and those pending certification -- were built as part of the company's Eco-Image USA II initiative that puts an emphasis on environmental sensitivity when building new facilities or updating current facilities. For instance, under the program, panels used on the building's exterior are made up of 90 percent recycled aluminum and Toyota assists dealers with cutting edge green options, including different power sources such as solar, wind and geothermal."

At an upcoming dealer meeting in Las Vegas next month, Toyota will ask its dealers to stop advertising cars below invoice in an attempt to help keep residual values higher and keep dealers from competing in a “race to the bottom,” Automotive News is reporting.

If accepted, Toyota would join Honda in penalizing dealers who advertise cars below invoice. According to the report, after three reported violations in one year, Honda could withhold marketing money from a dealer — which could be $400 per vehicle. It’s unclear how Toyota may penalize its dealers who don’t comply with the proposed new rule.

A less-than-happy dealer said he would consider suing Toyota for price fixing if the ad mandate were enforced.

“This is not in the best interest of the consumer, and I’m not going to keep my mouth shut,” said Earl Stewart, who runs a dealership in Florida.

A Boston-area Toyota dealer said keeping other dealers from advertising below invoice could keep unscrupulous dealers from bait-and-switch tactics to lure buyers to a showroom with one price, and sell them on another.

“It would be wonderful if this move could put some sanity into pricing,” said Mike Hills, general manager of Bristol Toyota-Scion.

Stewart said that he sells three out of four cars below invoice and that his dealership is a no-haggle dealership, something Lexus will reportedly adopt soon. He said that if he can’t advertise below invoice, he would lose business.

(It’s worth mentioning that dealer holdback allows some dealers to sell below invoice, but still make a profit on the car.)

At its Scion stores, Toyota is reportedly streamlining its online shopping process to encourage buyers to shop and pay for a car online before having it delivered*.

*Only in states where that sort of thing is legal, of course.

No word on whether balloons on cars would still be allowed.

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Interest in Hybrid Cars the Same, But Not When Money is Involved http://www.thetruthaboutcars.com/2015/08/interest-in-hybrid-cars-the-same-but-not-when-money-is-involved/ http://www.thetruthaboutcars.com/2015/08/interest-in-hybrid-cars-the-same-but-not-when-money-is-involved/#comments Sun, 23 Aug 2015 14:00:21 +0000 http://www.thetruthaboutcars.com/?p=1150945 Two stories paint an interesting present reality for hybrid and electric vehicles in America. Interest in hybrid vehicles has stayed consistent for the last two years among people in the U.S., AutoGuide is reporting. But apparently dealers and buyers can’t keep their hands off of those cars in Connecticut, where that state recently offered up to $3,000 […]

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2014-b-class-electric-drive-3

Two stories paint an interesting present reality for hybrid and electric vehicles in America. Interest in hybrid vehicles has stayed consistent for the last two years among people in the U.S., AutoGuide is reporting. But apparently dealers and buyers can’t keep their hands off of those cars in Connecticut, where that state recently offered up to $3,000 on the hoods of those cars, Automotive News is reporting.

According to a Harris Poll, 48 percent of polled Americans say they would consider a hybrid vehicle next time they’re in the market for a car, which is roughly the same number of people who said so in 2013. Interest in electric and plug-in hybrid cars was up slightly to 21 and 29 percent of respondents, respectively.

Getting people to pull the trigger on that purchase, it seems, is still a matter of dangling a tangible benefit — fuel economy and environmental benefit may still not be enough.

Jeff Aiosa, who owns a Mercedes dealership in New London, Connecticut, said his electrified B-Class cars weren’t going anywhere until that state started offering money directly to consumers to buy one.

“We weren’t selling them heavily before,” Aiosa told Automotive News. “The program certainly created some amped-up demand.”

Connecticut is offering money off the cars directly from a $1 million fund aimed at moving cars off lots. The state is putting up to $3,000 on the hoods of some cars, depending on battery size, to incentive purchases of hybrids and electric cars. Through July, about one-quarter of the incentive money available had been claimed.

“This is the type of program that can be a win-win-win for the state, auto manufacturers, dealers and consumers,” said Leo Karl, who owns a Chevrolet dealership. Karl said he was nearly out of 2015 Volts, which qualify for $1,500 from the program, and expects that the 2016 Volt, which will qualify for $3,000, will go quickly too.

Interestingly, part of the Connecticut program allows dealers who sell the cars to keep up to $300 of the incentive.

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You’re Paying More for That 2016 Hellcat, Quite a Bit More http://www.thetruthaboutcars.com/2015/08/youre-paying-more-for-that-2016-hellcat-quite-a-bit-more/ http://www.thetruthaboutcars.com/2015/08/youre-paying-more-for-that-2016-hellcat-quite-a-bit-more/#comments Sat, 22 Aug 2015 16:00:21 +0000 http://www.thetruthaboutcars.com/?p=1150841 Just in time for super-low gas prices, Dodge’s Hellcats will cost $3,650 to $4,200 more next year — at least — Autoblog is reporting. The 2016 Challenger Hellcat will start at $65,190 — including destination and gas guzzler tax, an increase of $4,200 over 2015. The Charger will start at $68,640 — including destination and […]

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2015 Dodge Challenger SRT Hellcat

Just in time for super-low gas prices, Dodge’s Hellcats will cost $3,650 to $4,200 more next year — at least — Autoblog is reporting.

The 2016 Challenger Hellcat will start at $65,190 — including destination and gas guzzler tax, an increase of $4,200 over 2015. The Charger will start at $68,640 — including destination and tax, which is an increase of $3,650.

(Those prices don’t reflect the “market adjustment” one could likely see for the highly coveted, limited-production vehicles. Although, Dodge really doesn’t like that.)

Pricing isn’t official from Dodge, but Autoblog says they’ve confirmed the figures for next year. Roughly 900 customers who ordered Challenger and Charger Hellcats had their orders cancelled last month after Dodge said it would ramp up production of the muscle cars. The report says those customers would get $5,000 and $4,000 off their Charger and Challengers, respectively.

The report also details a similar price hike for most SRT models, the Challenger SRT 392 will see a $3,150 price hike to $51,190 and the Charger SRT 392 will jump $3,000 to $51,990.

For your extra dough, you get leather as standard.

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Could the Ford Taurus be Imported From China? http://www.thetruthaboutcars.com/2015/08/ford-taurus-imported-china/ http://www.thetruthaboutcars.com/2015/08/ford-taurus-imported-china/#comments Mon, 17 Aug 2015 17:00:58 +0000 http://www.thetruthaboutcars.com/?p=1144049 The Ford Taurus, once the flagship in Ford’s range, apparently has fallen on hard times. Sales are down 28 percent through July, it hasn’t done much to outrun its perception as a perennial fleet queen and police fleet buyers are picking the Explorer-based Interceptor over the sedan. Automotive News details the fall and rise and fall again […]

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New Ford Taurus

The Ford Taurus, once the flagship in Ford’s range, apparently has fallen on hard times.

Sales are down 28 percent through July, it hasn’t done much to outrun its perception as a perennial fleet queen and police fleet buyers are picking the Explorer-based Interceptor over the sedan. Automotive News details the fall and rise and fall again of the Ford Taurus (thanks mostly to former Ford CEO Alan Mulally) and throws in a little tidbit in the middle:

If sales keep falling, analysts speculate Ford could eliminate U.S. production of it and … import the small volume it needs here from China …

Oh boy. 

It’s clear that Ford will have to make a decision about the Taurus soon. The current Taurus was last redesigned in 2009 and slightly updated in 2012. In April, Ford announced it would redesign the Taurus, but only in China.

Sales of the full-size Taurus peaked only a couple years ago, but the Taurus is on pace to sell 45,000 cars this year — including police cars — it’s lowest total ever.

In fact, the move to a full-size sedan — something Mulally pressed for early on in his tenure — may be what is killing the Taurus. By comparison, the Ford Fusion outsells the Taurus nearly four to one and is about $5,000 less for roughly the same car.

All that may be contributing to the tough time the Taurus is having in the States, and there’s always the Lincoln Continental right around the corner too.

So could the Taurus be Ford’s first import from China?

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Cadillac Slowing its Plans to Sell Cars in Europe http://www.thetruthaboutcars.com/2015/08/cadillac-slowing-plans-sell-cars-europe/ http://www.thetruthaboutcars.com/2015/08/cadillac-slowing-plans-sell-cars-europe/#comments Wed, 12 Aug 2015 22:00:53 +0000 http://www.thetruthaboutcars.com/?p=1140154 Cadillac likely won’t push to sell more cars in Europe before 2020, the company’s CEO Johan de Nysschen told analysts on Tuesday. “We’ll go to that market when we have the right powertrains and the right cars,” he said Tuesday, according to the Detroit News. Previously, Cadillac had planned some right-hand drive models and diesel powertrains […]

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Cadillac likely won’t push to sell more cars in Europe before 2020, the company’s CEO Johan de Nysschen told analysts on Tuesday.

“We’ll go to that market when we have the right powertrains and the right cars,” he said Tuesday, according to the Detroit News.

Previously, Cadillac had planned some right-hand drive models and diesel powertrains to help it gain a foothold in European markets. According to the report, Cadillac has sold only 838 cars in Europe so far this year. Cadillac wants to sell 500,000 cars globally by 2020, de Nysschen said.

Instead of Europe, de Nysschen told J.P. Morgan Auto Conference attendees (we guess our invitation just got lost in the mail, or something) that Cadillac would focus on strengthening its position in China, Russia and the Middle East.

The report didn’t detail how Cadillac would combat crumbling or slowing economies in China or Russia, but it’s clear that Cadillac is going to wait until its portfolio is much, much stronger before it attempts to seriously compete with the Germans in their own backyard.

Global sales of Cadillacs are up 1.5 percent, led by a 7.4-percent rise in China, and despite a 2.4-percent slowdown in America.

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This Year Could Be the Biggest Car-buying Year in 15 Years http://www.thetruthaboutcars.com/2015/08/year-biggest-car-buying-year-15-years/ http://www.thetruthaboutcars.com/2015/08/year-biggest-car-buying-year-15-years/#comments Mon, 10 Aug 2015 20:00:21 +0000 http://www.thetruthaboutcars.com/?p=1137538 Automakers could sell more than 17 million new cars and trucks in the U.S. this year, approaching the sales record set in 2000 of 17.4 million, Automotive News is reporting. Analysts raised their forecasts after a strong July for automakers and new cars that will be reaching showrooms in high-selling segments by the end of the […]

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Automakers could sell more than 17 million new cars and trucks in the U.S. this year, approaching the sales record set in 2000 of 17.4 million, Automotive News is reporting.

Analysts raised their forecasts after a strong July for automakers and new cars that will be reaching showrooms in high-selling segments by the end of the year. Last month was the 18th consecutive month for increasing sales.

Our own Timothy Cain thinks that regardless of the final number, 2015 will be a very, very, very good year for automakers.

Cain writes:

It’s been 18 months since monthly auto sales volume last decreased. That decrease, mind you, was brought about by a slight decline in the lowest-volume month of the year, January. In other words, growth in America’s auto industry is notable both for its rapidity and its consistency. It’s that consistency that makes it hard to believe the current pace won’t continue. Regardless of the outright volume attained by manufacturers competing in the U.S., 2015 will undoubtedly be better than 2014. Already, through just seven months, an additional 434,000 new vehicles have been sold compared with the same period one year ago.

Spurred by cheap gas prices, trucks are pacing the overall market as the fastest-selling segment in the U.S. this year. Sales of trucks grew 13 percent this year.

Automakers such as Honda and Chevrolet will introduce newer versions of their Accord and Malibu respectively in the coming months, and that should further stoke car sales, Automotive News points out.

The Wall Street Journal notes that while new car purchases are happening more frequently, and at higher prices, used car prices are finally starting to dip, which may be a relief to low-cost and entry buyers.

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Scion Wants to Sell Cars on New-fangled Thing Called “The Internet” http://www.thetruthaboutcars.com/2015/08/scion-wants-to-sell-cars-on-new-fangled-thing-called-the-internet/ http://www.thetruthaboutcars.com/2015/08/scion-wants-to-sell-cars-on-new-fangled-thing-called-the-internet/#comments Wed, 05 Aug 2015 21:00:20 +0000 http://www.thetruthaboutcars.com/?p=1134665 Scion — the youth focused, geriatric-coveted Toyota Junior Team brand — is looking to push sales in a different direction as it tries to shed its “retiree in an xB” image in favor of #millenials Snapchatting their road trips in Scion iMs. According to The Detroit Bureau, Scion wants to offer their wares online in more markets […]

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2015_NYIAS_Scion_iM_007

Scion — the youth focused, geriatric-coveted Toyota Junior Team brand — is looking to push sales in a different direction as it tries to shed its “retiree in an xB” image in favor of #millenials Snapchatting their road trips in Scion iMs.

According to The Detroit Bureau, Scion wants to offer their wares online in more markets in an effort to appeal to younger consumers who don’t want to take test drives, I guess.

The Pure Process program, as Scion calls it, allows #millenials to login to AOL, use the Scion keyboard, and pay for their vehicle by money order shop for a brand new car via their tablet, computer or other iDevice, get a final price, arrange financing, and have the vehicle delivered. The Detroit Bureau points out that last point can only be done where it’s legal to do so.17

The system is linked to dealers. A pilot program brought 10 dealers into the test. Now there are 60 participating Scion locations as part of Pure Process. Average purchase time, from start to finish, was four hours, though about 50 percent of participants completed the process in about two hours.

If you are not a #millenial and unsure about this whole Internet thing, here’s a how-to video from some smart, British IT people.

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Volkswagen Surpasses Toyota in Global Auto Sales http://www.thetruthaboutcars.com/2015/07/volkswagen-surpasses-toyota-global-auto-sales/ http://www.thetruthaboutcars.com/2015/07/volkswagen-surpasses-toyota-global-auto-sales/#comments Tue, 28 Jul 2015 18:00:36 +0000 http://www.thetruthaboutcars.com/?p=1126585 Despite slowdowns in China, Russia and Asia, Volkswagen surpassed Toyota in global auto sales by delivery in the first half of 2015, Automotive News Europe is reporting. Volkswagen sold 5.04 million cars in the first six months of 2015, compared to 5.02 million for Toyota, according to the report. Sales were down 1.5 percent and […]

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Volkswagen Wolfsburg

Despite slowdowns in China, Russia and Asia, Volkswagen surpassed Toyota in global auto sales by delivery in the first half of 2015, Automotive News Europe is reporting.

Volkswagen sold 5.04 million cars in the first six months of 2015, compared to 5.02 million for Toyota, according to the report. Sales were down 1.5 percent and 0.5 percent for Toyota and VW respectively.

GM was the third-largest automaker with 4.86 million vehicles.

Volkswagen capitalized on a growing European market to help offset softening Chinese sales. Passenger-vehicle sales fell for the first time in two years in China as that country’s economy responds to market volatility.

Sales slumped in South America, some Southeast Asia markets and sales in Russia have dramatically declined, the story points out.

Deliveries in North America increased by only 4.4 percent, the smallest margin since the economic recovery began in 2009.

The report is the latest in the saga of “Who Wants To Be The World’s Largest Automaker?” with VW on pace to take the crown three years before their executives forecasted. In May, it looked as if VW would take silver thanks to its ongoing leadership shuffle, but a resurgent European market may help. Meanwhile, Toyota may make up ground after a 10-percent gain in China in the first half, according to the report.

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Ford Posts $1.9B Second Quarter Profit, Largest Since 2000 http://www.thetruthaboutcars.com/2015/07/ford-posts-1-9b-second-quarter-profit-largest-since-2000/ http://www.thetruthaboutcars.com/2015/07/ford-posts-1-9b-second-quarter-profit-largest-since-2000/#comments Tue, 28 Jul 2015 17:00:07 +0000 http://www.thetruthaboutcars.com/?p=1126521 Ford announced that it made a $1.9 billion net-adjusted profit in the second quarter of 2015, marking the largest gain for the automaker since 2000, according to Automotive News. The profit represents a 44-percent gain over last year despite dipping global sales and a stronger U.S. dollar hampering exports. Ford said it was selling cars for […]

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2015 Ford F-150

Ford announced that it made a $1.9 billion net-adjusted profit in the second quarter of 2015, marking the largest gain for the automaker since 2000, according to Automotive News.

The profit represents a 44-percent gain over last year despite dipping global sales and a stronger U.S. dollar hampering exports. Ford said it was selling cars for more money and offering fewer incentives, despite recent reports of F-150 incentives topping nearly $11,000 in some places.

Ford said revenues in North America surged 10 percent, which helped the company beat Wall Street’s expectations.

The 10-percent gain in revenue in North America is despite Ford’s slower-than-average sales compared to the overall industry average. Automotive News reported that the automaker achieved a 1.7-percent increase in sales for the second quarter compared to the industry average of 3.3 percent.

A slowdown in production of the F-150 is partially to blame for the sales shortfall. Building the redesigned F-150 at both of Ford’s plants has gone slower than normal, the automaker said, and inventory levels should return to normal in September.

The automaker said it increased its global market share one-tenth of a percent to 7.6 percent. Twelve of its 16 planned global launches have happened already this year, and Ford said the rest were on track. The company said it was still on track for an end-of-year, pre-tax profit of between $8.5 billion and $9.5 billion.

Ford posted a net loss in South American, European, Middle Eastern and African markets, but posted a $33 million gain in the Asia Pacific region, a 20-percent improvement over last year.

Ford Credit posed a $506 million pre-tax profit for the second quarter, a 17-percent gain.

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EU Gains Not Enough to Stave Opel Production Reductions http://www.thetruthaboutcars.com/2015/07/eu-gains-not-enough-to-stave-opel-production-reductions/ http://www.thetruthaboutcars.com/2015/07/eu-gains-not-enough-to-stave-opel-production-reductions/#comments Sat, 18 Jul 2015 17:00:47 +0000 http://www.thetruthaboutcars.com/?p=1119321 Recent sales growth in the EU hasn’t been kind to Opel as the group is forced to reduce hours at two German plants. According to Automotive News, Opel will cut production of the Adam and Corsa at Eisenach and Insignia and Zafira Tourer at Ruesselsheim. The move is due to Opel’s exit from the Russian […]

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Opel Bochum - Picture courtesy wa.de

Recent sales growth in the EU hasn’t been kind to Opel as the group is forced to reduce hours at two German plants.

According to Automotive News, Opel will cut production of the Adam and Corsa at Eisenach and Insignia and Zafira Tourer at Ruesselsheim. The move is due to Opel’s exit from the Russian market and what the automaker calls “moderate” gains in the rest of Europe.

However, within the EU, overall sales for all automakers are up 8.2 percent in the first six month of this year and 14.6 percent in June, according to ACEA.

Opel and Honda are the only two automakers to see sales decline within the EU versus the same six month period last year. Opel experienced a 0.7-percent drop in overall group sales in the EU. Honda took an even harder hit with an 7.9-percent decline.

On the other end of the graph, Mitsubishi has posted 57.0-percent growth in the EU, though that percentage is based on relatively low volume compared to others. Nissan is the runner up at 21.6-percent growth while Jaguar-Land Rover (16.9 percent), Daimler (15.0 percent), FCA (12.9 percent) and BMW (12.0 percent) all saw double-digit percentage growth, beating the overall six-month average.

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Ford: Our Incentives Are Still Lower than Overall Segment http://www.thetruthaboutcars.com/2015/07/ford-incentives-still-lower-overall-segment/ http://www.thetruthaboutcars.com/2015/07/ford-incentives-still-lower-overall-segment/#comments Fri, 17 Jul 2015 20:00:04 +0000 http://www.thetruthaboutcars.com/?p=1118913 A Ford spokesman said Friday that despite the automaker offering nearly $11,000 on particular F-150 models, their incentives are still under the segment average. “It’s not like every F-150 customer walking into a Ford dealer today — whether they’re in L.A. or New York — is going to get $10,000 off of every single model,” Truck […]

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2015 Ford F-150

A Ford spokesman said Friday that despite the automaker offering nearly $11,000 on particular F-150 models, their incentives are still under the segment average.

“It’s not like every F-150 customer walking into a Ford dealer today — whether they’re in L.A. or New York — is going to get $10,000 off of every single model,” Truck Communications Manager Mike Levine said.

“On average, we’re lower than the segment.”

Levine said the $10,819 we reported on yesterday was a specific truck in a specific area. Those numbers, such as $7,050 off, that Ford publicizes on its website aren’t indicative of every incentive available.

F-150 incentives

“That’s a very specific set of incentives that are all stacked together that gets you to $10,000,” he said.

According to Ford, those incentives include: $3,769 average dealer discount; $500 customer cash; $1,000 XLT customer cash; $300 2.7-liter V6 EcoBoost bonus cash; $2,000 302A XLT Luxury Chrome or Sport packages.; $2,500 bonus cash; and $750 Ford Credit Bonus Cash, which requires Ford Credit financing.

Levine said the average incentive offered on a F-150 is $3,354, which is $800 lower than the segment average and lower than the automaker had offered one year ago.

Dealer inventories are down, Levine said, and Ford needs to stay competitive.

“For this particular truck, we’re helping customers get into a better truck. It’s something that we do from time-to-time, and it’s in line with what our competitors do,” he said.

Representatives from Ram and General Motors didn’t immediately respond to requests for comment.

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Ford Putting Nearly $11,000 on Hoods of Some F-150s http://www.thetruthaboutcars.com/2015/07/ford-putting-nearly-11000-hoods-f-150s/ http://www.thetruthaboutcars.com/2015/07/ford-putting-nearly-11000-hoods-f-150s/#comments Thu, 16 Jul 2015 17:00:39 +0000 http://www.thetruthaboutcars.com/?p=1117793 Ford is looking to boost sales of its full-size F-150 by offering more than $10,000 in incentives for some higher-trim models in some parts of the United States, Automotive News is reporting. Production issues have plagued the aluminum 2015 F-150 since its launch late last year. According to Ford, only half of the F-150’s normal inventory […]

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Ford F-150 grey, side

Ford is looking to boost sales of its full-size F-150 by offering more than $10,000 in incentives for some higher-trim models in some parts of the United States, Automotive News is reporting.

Production issues have plagued the aluminum 2015 F-150 since its launch late last year. According to Ford, only half of the F-150’s normal inventory has been available since June, which as hampered sales. The automaker says dealer stocks will be full by the end of September.

The company’s website offers nearly $11,000 off of 2015 Ford F-150 XLT SuperCrew with Chrome or Sport packages in some parts of the country.

Screen Shot 2015-07-16 at 9.09.07 AMWe found this offer available in the middle of Michigan, near Clare, on Ford’s website. Other parts of the country may receive up to $7,050 off similar models.

“The truck hasn’t sold up to expectations for the most part,” Akshay Anand, an analyst at Kelley Blue Book, told Automotive News. “This may be a hint that in certain parts of the country, the issue might just be more than supply.”

Truck sales have been up for the first half of this year, but the F-150’s sales pace has been modest. F-Series volumes have dipped in each of the last five months, and second-quarter sales have dropped 6.5 percent.

 

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Ford C-Max Sales Have Perpetually Declined In America http://www.thetruthaboutcars.com/2015/07/ford-c-max-sales-perpetually-declined-america/ http://www.thetruthaboutcars.com/2015/07/ford-c-max-sales-perpetually-declined-america/#comments Thu, 16 Jul 2015 12:00:06 +0000 http://www.thetruthaboutcars.com/?p=1113177 Following Ford’s announcement that production of the Focus and C-Max would leave Wayne, Michigan in the next few years, sales personnel at Ford dealers across America were heard asking their managers, “We still sell the C-Max?” No, that’s not entirely true. Ford is moving Focus and C-Max production out of Wayne by 2018, but we weren’t privy […]

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Ford C-Max sales chart TTAC

Following Ford’s announcement that production of the Focus and C-Max would leave Wayne, Michigan in the next few years, sales personnel at Ford dealers across America were heard asking their managers, “We still sell the C-Max?”

No, that’s not entirely true. Ford is moving Focus and C-Max production out of Wayne by 2018, but we weren’t privy to the conversations inside Ford showrooms. That question may or may not have been asked.

Through the first-half of this year, Ford’s U.S. dealers only sold an average of four C-Max Hybrids and C-Max Energis per dealer per month. 

The C-Max did get to off to a hot start back at the end of 2012. There was plenty of talk about the C-Max’s ability to outsell the Toyota Prius. No, not the Prius you know best, but rather the Prius V, which isn’t nearly as popular as the regular Prius.

During the final quarter of the year, Ford sold 12,340 copies of the C-Max in the United States; twice topping the 4K mark. (Ford hasn’t topped 3800 since, didn’t top 3,501 in 2014, and hasn’t managed 2,700 monthly sales in 2015’s first six months.)

2013 Ford C-MAX Hybrid, Picture Coutesy of Ford Motor CompanyBut by the end of its first year, the C-Max was already struggling to find more than 3,000 buyers per month. Other than the September 2013 improvement, when the year-over-year comparison took into account the C-Max’s launch month of September 2012, and two other occasions last summer, C-Max sales have always declined on a year-over-year basis.

Thus, while never truly popular, the C-Max has become increasingly unpopular in America. The reasons? It’s difficult to challenge a segment owner like the Prius. The second-generation Honda Insight can attest to that fact. Ford also flubbed the fuel efficiency marketing hype and later paid the price. Even before its efficiency downgrade, the C-Max wasn’t alleged to be quite as economical as its Toyota rivals.

Timothy Cain is the founder of GoodCarBadCar.net, which obsesses over the free and frequent publication of U.S. and Canadian auto sales figures. Follow on Twitter @goodcarbadcar and on Facebook.

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Report: TrueCar Drew Hard Line with AutoNation Over Data http://www.thetruthaboutcars.com/2015/07/report-truecar-drew-hard-line-autonation-data/ http://www.thetruthaboutcars.com/2015/07/report-truecar-drew-hard-line-autonation-data/#comments Mon, 13 Jul 2015 18:00:27 +0000 http://www.thetruthaboutcars.com/?p=1114737 Automotive News has interesting insight into the tenuous, and now soon-to-end, relationship between TrueCar and car dealer-giant AutoNation. The report details a May lunch between TrueCar CEO Scott Painter, President John Krafcik and Senior Vice President of Dealer Development Mike Timmons, and AutoNation COO Bill Berman and Chief Marketing Officer Marc Cannon. At the lunch, TrueCar executives reportedly […]

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AutoNation CEO Mike Jackson

Automotive News has interesting insight into the tenuous, and now soon-to-end, relationship between TrueCar and car dealer-giant AutoNation.

The report details a May lunch between TrueCar CEO Scott Painter, President John Krafcik and Senior Vice President of Dealer Development Mike Timmons, and AutoNation COO Bill Berman and Chief Marketing Officer Marc Cannon. At the lunch, TrueCar executives reportedly said they would require data from all AutoNation sales — regardless if they were generated by TrueCar — for the two companies to continue doing business.

“Over my dead body,” AutoNation CEO Mike Jackson said later, according to Automotive News.

Last week, when Jackson announced the split between AutoNation and TrueCar he laid most of the blame at TrueCar’s “unconscionable and unprecedented” demand for more than 40 data points for each car sold at AutoNation. AutoNation sells more than 550,000 annually at its 240 dealerships across the United States.

The dealer said roughly 3 percent of its sales can be attributed to TrueCar leads, which it charges $299 and $399 per new- and used-car purchase. AutoNation said it pays TrueCar around $550 per sale, for which TrueCar unjustifiably takes credit. TrueCar said internal auditing revealed that they were responsible for nearly 7 percent of AutoNation’s sales.

“We know exactly the degree to which AutoNation underreported,” Painter said. “It’s massive.”

“Customers go many places before and after a TrueCar visit, and just because they were momentarily on the TrueCar site doesn’t mean I should have to pay them $300. So there’s a big disagreement there,” Jackson said.

In a May 23 letter to Berman and Cannon, TrueCar specifically outlined the customer data it was seeking and said it was already “firing” dealers who failed to comply.

“In the trailing 12 months, TrueCar suspended over 300 dealers who did not meet marketplace or customer requirements. We are prepared to take similar action here should AutoNation elect not to follow our marketplace requirements,” the letter states.

TrueCar’s request for data included customer’s names, addresses, phone numbers and e-mail addresses in addition to data on the newly purchased car.

Dealers have said turning over such extensive data could lead to privacy concerns and enable TrueCar to steal customers in the future.

AutoNation said it would start up its own portal for customers similar to TrueCar, and would back away from third-party vendors in the future.

 

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Nissan Can’t Build Rogues Fast Enough in Tennessee, Apparently http://www.thetruthaboutcars.com/2015/07/nissan-cant-build-rogues-fast-enough-tennessee-apparently/ http://www.thetruthaboutcars.com/2015/07/nissan-cant-build-rogues-fast-enough-tennessee-apparently/#comments Thu, 09 Jul 2015 19:00:51 +0000 http://www.thetruthaboutcars.com/?p=1112241 Nissan announced today they’ll expand production of the current-generation Nissan Rogue to its Japanese plant and import those cars into the U.S. Nissan’s Kyushu plant produces a version of the Rogue already on sale in the U.S., called Rogue Select. It’s unclear if the current-generation Rogue and last-generation Rogue will be produced side-by-side or if […]

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Nissan announced today they’ll expand production of the current-generation Nissan Rogue to its Japanese plant and import those cars into the U.S.

Nissan’s Kyushu plant produces a version of the Rogue already on sale in the U.S., called Rogue Select. It’s unclear if the current-generation Rogue and last-generation Rogue will be produced side-by-side or if Nissan will discontinue selling the Rogue Select.

U.S.-sold Rogues are sourced from Nissan’s Symrna, Tennessee plant and Busan, Korea.

In April, the Rogue became America’s second-favorite compact crossover behind the Honda CR-V, and helped fuel a sales surge for the automaker.

Year-over-year sales jumped 41 percent in March, and Nissan reported January to June sales of the CUV were up 36 percent from the same period last year.

Selling two generations of a car made in three different countries may not be enough. June sales for the Rogue were up 54.3 percent over last year, the automaker reported.

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Subaru’s 2015 Sales Already Surpass All of 2011 http://www.thetruthaboutcars.com/2015/07/subarus-2015-sales-already-surpass-2011/ http://www.thetruthaboutcars.com/2015/07/subarus-2015-sales-already-surpass-2011/#comments Wed, 08 Jul 2015 20:00:20 +0000 http://www.thetruthaboutcars.com/?p=1109321 Subaru has already sold as many cars in 2015 as they did in all of 2011, according to the company. Last month, Subaru recorded its 16th-consecutive month of increasing sales, selling more than 44,000 cars in the U.S. The Forester and Outback were Subaru’s best-selling models. In 2011, Subaru sold 266,989 cars according to the automaker. […]

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2015 Subaru Outback

Subaru has already sold as many cars in 2015 as they did in all of 2011, according to the company.

Last month, Subaru recorded its 16th-consecutive month of increasing sales, selling more than 44,000 cars in the U.S. The Forester and Outback were Subaru’s best-selling models.

In 2011, Subaru sold 266,989 cars according to the automaker. At the end of June 2015, they had already sold 272,418.

Emerging out of the recession, Subaru’s growing pace could easily be described as meteoric. The small Japanese company outsold Volkswagen in the U.S. last year, and so far the company is on pace to sell more than 500,000 cars in the states this year.

According to Michael McHale, director of communications for Subaru, the company is targeting 545,000 U.S. sales this year, which is partially limited due to production capacity.

Subaru’s portfolio in the U.S. is relatively small compared their sales. The Impreza-based XV Crosstrek, WRX, Forester and Impreza are imported from Japan and Subaru builds the Legacy and Outback in Indiana. Subaru will build the Impreza in Indiana next year. The BRZ is jointly produced with Toyota.

The company is widely expected to announce a three-row crossover soon, and Subaru recently announced it would sell the Levorg in Australia because we can’t have nice things.

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In Mother Russia, Electric Cars Charge You (Lots of Money to Own One) http://www.thetruthaboutcars.com/2015/07/back-mother-russia-electric-cars-charge-potential-buyers/ http://www.thetruthaboutcars.com/2015/07/back-mother-russia-electric-cars-charge-potential-buyers/#comments Wed, 08 Jul 2015 19:00:28 +0000 http://www.thetruthaboutcars.com/?p=1110553 Wealthy Russians are clamoring for Teslas that aren’t even available in their country, Bloomberg News is reporting. Buyers are paying up to double for the electric vehicles, the story reports, which include freight and import fees of more than $60,000 for the cars. “It doesn’t pollute nature and it’s super cheap and easy to use,” Herman Gref […]

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tesladeal

Wealthy Russians are clamoring for Teslas that aren’t even available in their country, Bloomberg News is reporting.

Buyers are paying up to double for the electric vehicles, the story reports, which include freight and import fees of more than $60,000 for the cars.

“It doesn’t pollute nature and it’s super cheap and easy to use,” Herman Gref told Bloomberg News in an e-mail.

Super cheap is relative term — even in Russian we hope.

The “iPhone on wheels,” according to one Russian buyer, has a small but devoted following, apparently.

There are only 300 registered electric cars in Russia, not including Teslas, for more than 144 million people. By contrast, there are 1,200 registered electric cars in Estonia, with a population 100 times smaller than Russia’s. So far, more than 35,000 battery-powered electric vehicles (excluding Volt) have been purchased in the U.S. this year.

According to the story, Tesla has no future plans to enter the Russian market — which is the world’s second-largest producer of oil. Electric cars in Russia are exceptionally expensive, infrastructure is severely lacking and the Russian government doesn’t offer any incentives to make the switch to electric cars. 

But Russian automaker (with an unfortunate name) Revolta Motors say they’ll introduce a Chinese-built electric car in Russia this year.

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Can Maserati Replace Ferrari? (Or at Least Ferrari’s Profits) http://www.thetruthaboutcars.com/2015/07/can-maserati-replace-ferrari-least-ferraris-profits/ http://www.thetruthaboutcars.com/2015/07/can-maserati-replace-ferrari-least-ferraris-profits/#comments Wed, 08 Jul 2015 18:00:51 +0000 http://www.thetruthaboutcars.com/?p=1110425 With the imminent spin-off of Ferrari, Fiat Chrysler Automobiles boss Sergio Marchionne may be looking for a cash cow to help keep lagging brands at FCA afloat. A story by Automotive News on Wednesday wonders aloud if Maserati will replace Ferrari as FCA’s marquee brand with double-digit profit margins. Behind Marchionne’s plan to sell the world on […]

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With the imminent spin-off of Ferrari, Fiat Chrysler Automobiles boss Sergio Marchionne may be looking for a cash cow to help keep lagging brands at FCA afloat.

A story by Automotive News on Wednesday wonders aloud if Maserati will replace Ferrari as FCA’s marquee brand with double-digit profit margins. Behind Marchionne’s plan to sell the world on Jeep and Alfa Romeo, he would need to sell the world on the idea that Maserati is an exclusive, luxury brand, the article says.

Of course, that may be tough to do considering Maserati has always had a reputation for being Ferrari’s nerdy suburban cousin.

At issue isn’t the Trident brand’s identity, but rather its bottom line. When Ferrari leaves the FCA family later this year, it’ll likely be taking some debt but also a lot of cash. Ferrari turns a profit each year, upwards of $500 million, for parent-company FCA. Money like that is hard to replace.

Maserati comes close, according to the story. Despite starting at $69,800 for an entry Ghibli, Maserati manages 10 percent margin on its cars compared to Ferrari’s 13 percent. Maserati’s volume production is also roughly 6 times that of Ferrari’s, but refining Maserati’s image from famously fussy to drop-dead desirable could be a tall task.

According to Autodata Corp., sales of the Ghibli have slid considerably since its introduction in 2013 and dealers have offered more than $9,500 in incentives for the mid-sized luxury car.

Still, Maserati is boosting its dealership presence in the U.S. by around 20 percent this year to 125 dealers and their luxury Levante SUV should be unveiled at Detroit’s North American International Auto Show.

“They’ve got a hell of a lot to build on,” Joe Phillippi, president of AutoTrends Inc., a consulting firm in Andover, N.J., told Automotive News. “But it’s incredibly expensive to play the game. Marchionne can’t afford to stumble. With the volume numbers he’s trying to generate, he’d better not miss.”

Maserati has grown considerably in the U.S. thanks to a larger portfolio and growing dealership network.

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FCA, Peugeot Could Be Most Impacted by Flagging Greek Economy http://www.thetruthaboutcars.com/2015/07/fca-peugeot-impacted-flagging-greek-economy/ http://www.thetruthaboutcars.com/2015/07/fca-peugeot-impacted-flagging-greek-economy/#comments Tue, 07 Jul 2015 19:00:56 +0000 http://www.thetruthaboutcars.com/?p=1109161 Automakers PSA (Peugeot and Citröen) and Fiat Chrysler Automobiles are most at risk if Greece’s economy fails and the country backs out of the Euro, according to a report by Automotive News. Analysts say the two automakers have the largest share of southern European markets — including Italy, Spain and Portugal — where the economic impact of […]

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1024px-Peugeot_308_CC_e-HDi_FAP_110_STOP_&_START_Active_(Facelift)_–_Frontansicht,_10._September_2011,_Düsseldorf

Automakers PSA (Peugeot and Citröen) and Fiat Chrysler Automobiles are most at risk if Greece’s economy fails and the country backs out of the Euro, according to a report by Automotive News.

Analysts say the two automakers have the largest share of southern European markets — including Italy, Spain and Portugal — where the economic impact of a Greek failure could hit the hardest.

Although the automakers have a large share of those markets, its a relatively small portion of their overall sales, the report states.

Analysts say that economic turmoil in Greece has yet to impact automakers, but many are taking a wait-and-see approach. The larger impact may be in neighboring economies, such as Germany, if those countries are expected to shoulder bailouts from any other failing economies.

“We recognize this as a potential catalyst that could cause European consumers to postpone their purchase of new cars, but we don’t take that as a base case scenario,” Edoardo Spina of Exane BNP Paribas told Automotive News. “The only risk stems from contagion, which will depend on how the European institutions and the media handle the next few days and weeks, but it’s a relatively small risk.”

The report says that PSA and FCA’s sales in the southern European markets (Spain, Portugal, Italy and Greece combines) comprises about 12 percent of their overall business. In comparison, Volkswagen’s sales there are only about 5 percent.

By many accounts, Greece’s economy is a mess. But considering the relatively low rate of new-vehicle purchases there — in May only 9,070 new vehicles were registered in Greece, compared to 256,385 in Germany, according to ACEA — most automakers could withstand a Greek collapse. The greatest damage would be collateral.

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Record Sales Pace Partially Fueled by Record Incentives http://www.thetruthaboutcars.com/2015/07/record-sales-pace-partially-fueled-record-incentives/ http://www.thetruthaboutcars.com/2015/07/record-sales-pace-partially-fueled-record-incentives/#comments Thu, 02 Jul 2015 19:00:52 +0000 http://www.thetruthaboutcars.com/?p=1106289 The Detroit Bureau is reporting that even though June was a record sales month for many automakers, many of those sales were partly fueled with record incentives from the manufacturer. Buyers could get up to $8,000 knocked of the price of a Kia K900 or up to $7,000 off of Ford hybrids or electric cars — […]

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Insane People at the Stock Photo Dealership

The Detroit Bureau is reporting that even though June was a record sales month for many automakers, many of those sales were partly fueled with record incentives from the manufacturer.

Buyers could get up to $8,000 knocked of the price of a Kia K900 or up to $7,000 off of Ford hybrids or electric cars — even $8,000 for the 2015 Ford C-Max Energi.

Despite the higher-than-normal incentives, the Detroit Bureau reported that the Average Transaction Price for a new car in June was $31,848, up around 1 percent over last year.

Two automakers increased spending on their incentives by more than 30 percent over the same time last year — Nissan and Hyundai. As a percentage of incentives offered to ATP, Kia (11.7 percent), Hyundai (10.5 percent), Nissan (10.3 percent), GM (10.2 percent) and FCA (10.2 percent) were the biggest spenders last month.

As expected, many of the heavily incentivized cars were slow-moving models or cars with narrow appeal, which automakers could immediately offset by selling massive amounts of huge crossovers with equally huge margins.

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Sales of EVs, Hybrids Slumping After Gas Prices Dip http://www.thetruthaboutcars.com/2015/07/sales-evs-hybrids-slumping-gas-prices-dip/ http://www.thetruthaboutcars.com/2015/07/sales-evs-hybrids-slumping-gas-prices-dip/#comments Thu, 02 Jul 2015 16:00:00 +0000 http://www.thetruthaboutcars.com/?p=1105913 Sales figures from automakers this week show slumping sales of electric vehicles and hybrids nationwide as gas prices drop and tax incentives dry up. According to the Detroit News, sales from EV makers such as Nissan and Chevrolet have slowed down significantly — more than 30 percent for the Volt and 12 percent for the Leaf […]

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Atlanta Police Nissan Leaf

Sales figures from automakers this week show slumping sales of electric vehicles and hybrids nationwide as gas prices drop and tax incentives dry up.

According to the Detroit News, sales from EV makers such as Nissan and Chevrolet have slowed down significantly — more than 30 percent for the Volt and 12 percent for the Leaf — last month, and both models may end up down significantly for the sales year.

Hybrid carmakers such as Ford and Honda are also reporting slow sales for their cars. Ford reported that its hybrid sales were down 29 percent over the last five months, and Honda reported a 15-percent drop in June.

Industry analysts say the slowdown could be a result of the lowest gas prices in five years, and a adjustment of states’ EV incentives. Recently, the California Air Resources Board unveiled a tiered incentive program that would adjust rebates based on income. A study showed that more than one in four EV buyers in California earned more than $200,000 a year, but still received the full benefit during the second quarter of 2015. More than three-quarters of EV buyers made more than $99,000. Georgia will end its incentives.

None of this has slowed down automakers’ production of EVs, however.

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Used Tesla Values Could Be a Bubble Waiting to Burst http://www.thetruthaboutcars.com/2015/07/used-tesla-values-could-be-a-bubble-waiting-to-burst/ http://www.thetruthaboutcars.com/2015/07/used-tesla-values-could-be-a-bubble-waiting-to-burst/#comments Wed, 01 Jul 2015 17:00:57 +0000 http://www.thetruthaboutcars.com/?p=1104801 The National Automobile Dealers Association new electric vehicle retention list released last week has a tasty little tidbit in its roundup of value retention rates. Tesla’s Model S, which topped the 3-year value retention rate list for EVs in the new list, also sported a better value rate for most cars on a similar list released last year for all […]

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Tesla Model S Center Stage

The National Automobile Dealers Association new electric vehicle retention list released last week has a tasty little tidbit in its roundup of value retention rates.

Tesla’s Model S, which topped the 3-year value retention rate list for EVs in the new list, also sported a better value rate for most cars on a similar list released last year for all segments, including mid-size luxury cars. That includes BMW.

But the news may not be all good, all the time.

According to the most recent NADA study, Tesla’s Model S retains 57.2 percent of its original value after three years based on dealer trade-in values. That figure is tops among mid-size luxury sedans, including BMW’s 5-series, in a study conducted last year.

Also noted in the 2015 study, there is a significant cliff after three years when most EV manufacturers’ powertrain warranties expire, meaning there’s good chance that the Model S’s value plummets after that.

The 2014 study by NADA (which examined all segments – including EVs) was comprised of only the Chevrolet Volt and Nissan Leaf — the only two cars that had been on the market for three years by the time the study was conducted. The Volt and Leaf retained 41.6 percent and 38.2 percent of their values respectively, due partly to price drops from their manufacturers and increasing competition in the segment. The 2015 study had worse news for Volts and Leafs on trade-in: those values dropped to 31.3 and 25.3 percent respectively.

As Tesla prepares to release their Model X, there’s no doubt quite a few Model S owners will be looking to replace their sedans. This could trigger a market saturated with Model S’s (or is it “Models S”?) at or nearing the end of their warranty lives — and it’ll likely have legitimate competition in the near future as well, further driving down retained values.

Tesla Model X Teaser

It’s no secret that Tesla has no significant cash flow, hasn’t turned a profit for more than one fiscal quarter in five years, and probably won’t have a cash-positive year until 2020.

That all could mean the bottom falling out for Tesla Model S values soon. Or not.

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Study: Nine Out Of 10 Millennials Consider Car Ownership Important http://www.thetruthaboutcars.com/2015/06/study-nine-out-of-10-millennials-consider-car-ownership-important/ http://www.thetruthaboutcars.com/2015/06/study-nine-out-of-10-millennials-consider-car-ownership-important/#comments Mon, 29 Jun 2015 18:00:55 +0000 http://www.thetruthaboutcars.com/?p=1102257 Allegedly, Millennials care only about the latest iPhone, and not the i8. Nine out of 10 Millennials would disagree, and consider car ownership important. The statistic comes from a study by rental car company Enterprise Holdings, The Detroit Bureau says, with the indication Millennials are renting cars they might want to buy later, per fleet […]

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Allegedly, Millennials care only about the latest iPhone, and not the i8. Nine out of 10 Millennials would disagree, and consider car ownership important.

The statistic comes from a study by rental car company Enterprise Holdings, The Detroit Bureau says, with the indication Millennials are renting cars they might want to buy later, per fleet operations boss Kurt Kohler:

When we provide our customers with a great rental experience, it doesn’t just keep them coming back to us – it clearly sends many of them into their local dealer showrooms, as well.

Though studies like Enterprise’s are seen more as marketing tools benefiting the company than the consumer, other studies and reports point to the same conclusion: young adults want to drive, and want to own what they drive. One analysis by J.D. Power found Millennials account for 27 percent of all U.S. new car sales at present, with the cohort overtaking Baby Boomers on the sales floor by the 2020s.

Returning to Enterprise’s study, the company found 92 percent of Boomers and Millennials believe owning a car is important, compared to 73 percent in 2013. The spike is likely the result of improving fortunes among the younger cohort alongside the economy following the end of the Great Recession.

Regarding rental-to-showroom sales, 32 percent of Millennials said a positive renting experience led them down the road to their new vehicle, while 30 percent of Gen-Xers and 23 percent of Boomers though the same. Additionally, 45 percent of those surveyed said renting a car prepared them for the technologies they would find in their own vehicle.

The study is more good news for automakers as they seek to bring in more potential customers. Rather than build fleet-ready models for the sake of keeping the lights on, automakers could use the opportunity to claim those sales as marketing for the real thing, especially if they decide to add more technology to a base model to show off what they can do when it comes time to turn the renter into a buyer.

(Photo credit: Mercedes-Benz USA/Facebook)

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