Ford and General Motors are both slated to show their third-quarter earnings reports on Thursday.
Reports suggest that despite the negative impacts of the global semiconductor chip shortage, there may be positives for the companies, as well.
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Category: Sales
The same forum that told us to anticipate the order bank opening for the 2022 Ford Lightning next week is now saying “not so fast, my friend” (apologies to Lee Corso).
With automobile prices ballooning to egregiously high levels, one might assume that the industry would be in rough shape. But they’d be dead wrong. Supply chain disruptions have actually created a captive market where consumers are desperate to lay their hands on whatever products are available. In the automotive realm, this has allowed retailers to set ludicrous prices and rake in larger profits per transaction. While inflation may eventually catch up to these entities, the gravy train is currently parked at the station and dousing big business with its warm, brown effluence.
Nobody knows this better than the folks at AutoNation. Because the company just released a quarterly profit report that blew its rosiest projections out of the water. Net income its ongoing operations was $361.7 million for Q3 2021, double the $182.6 million witnessed in Q3 of 2020, while revenue rose 18 percent to $6.4 billion. Read More >
Sometimes car companies get a bit carried away with a new idea that, for a myriad of reasons, doesn’t translate so well in its execution. Toyota (and other Japanese companies) did exactly this when they invested in the very unsuccessful line of WiLL cars and other consumer products in the early 2000s.
Today we look at a 1980s domestic example of an idea that fell flat. It was the time Cadillac thought applying lipstick to a Cavalier-shaped pig would make the BMW and Mercedes-Benz 190E customer come a’callin. It’s time for Cimarron, a J-body joint.
While nobody needs to tell you that the economy isn’t in good health, we should at least hip you to the latest automotive trends relating to the financial purgatory we’re currently living through. Ford sent a memo to dealers last week indicating that it would be removing the minimum FICO requirement for 84-month financing, indicating that the industry may soon normalize auto loans that are even longer than the 72-month whoppers that have grown in popularity over the last several years.
Meanwhile, those needing a vehicle intermittently will find that rental rates have not been declining as hoped. Despite analysts previously suggesting that auto pricing may stabilize through the fall, we now look to be going into the holidays facing familiar high-priced troubles — and there’s really no reason to think that’s going to change after 2022 gets here. Read More >
Despite manufacturers still managing to turn a profit, the automotive sector hasn’t been in the best of health these last few years. Growth appears to have plateaued in most Western nations, encouraging companies to cater this business toward other markets, supply chains have also been negatively impacted by the pandemic — with semiconductor shortages hindering production schedules on a scale we’ve not seen since the Great Recession.
It’s a bad situation and rumored to get worse if the warning cries of economists are to be believed. But there’s also mounting evidence to support their claims. The Society of Motor Manufacturers and Traders (SMMT) recently reported that vehicle registrations in the United Kingdom fell by roughly 35 percent in September vs the same timeframe in 2020. This is relevant because the month typically represents the second-busiest period for the country and numbers were already low due to production stops created by coronavirus lockdowns. Read More >
Ninety years. That’s the amount of time that General Motors has led the sales charts in the U.S.
That may change this year, according to industry bible Automotive News, because of the ongoing microchip shortage.
Toyota was very focused on youthful consumer appeal at the turn of the millennium. Around the same time the WiLL sub-brand launched in the Japanese home market with its multitude of different products, a similar project was just getting underway at Toyota Motor Sales USA.
It was called Project Genesis, and like WiLL, it didn’t go well.
The WiLL branding project in early 2000s Japan was intended to excite and interest younger consumers with stylish products, all of which were marketed as WiLL. At the pinnacle of unique WiLL offerings were three different small Toyotas: The first two were the unpopular and unsuccessful retro-French themed Vi, and the modern-looking, popular, and unsuccessful VS.
Around the middle of VS production, Toyota just knew there had to be a part of the market they hadn’t reached yet and reintroduced the idea of the Vi with a polar opposite stylistic direction. This is the Cypha. Read More >
Several Japanese companies embarked on the WiLL sub-brand exercise at the dawn of the new millennium. Miscellaneous WiLL-branded products were introduced alongside a funky new car offering from Toyota, the WiLL Vi.
The baguette-themed retro sedan was an immediate failure amongst the youthful consumers WiLL was supposed to attract, so Toyota had a very quick rethink. Meet VS.
The WiLL project was a short-lived collaborative marketing effort by several Japanese brands, intended to capture the interest and money of youthful buyers. Using emotional engineering, seven companies launched new products in the early 2000s wearing WiLL sub-branding. Included in the myriad of offerings were three different subcompact Toyotas.
And here’s the first one, the WiLL Vi.
Today’s Abandoned History story is one of targeted marketing. In the early 2000s, an amalgam of Japanese corporations combined efforts to reach out to younger consumers via unified branding. Cars, food, appliances – all across Japan new, youth-focused products all wore the same sub-brand: WiLL.
Collectively WiLL asked, “How do you do, fellow kids?”
The chip shortage has struck again.
General Motors is going to temporarily halt production at most of its North American assembly plants, starting Monday, because the shortage of semiconductor chips continues.
The reviews are breaking today on the new Jeep Grand Wagoneer. As Jeep resurrects one of its most historical full-size nameplates from a three-decade slumber, it’s getting a lot of positive press coverage. But Jeep is in for a world of disappointment in a couple of years.
I’m back with more boring used car content, a topic some of you apparently despise with a passion. Caution: More used-car discussion ahead, get out while you still can if this is the case! For the rest of you, let’s review the impractical car suggestions you’ve made that earned a spot on the Yes, I Like list.
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