August Brings Elevated Incentives, Higher Transaction Prices - But Not for Everyone

A flurry of new model additions benefitted many automakers with additional sales and greater revenue last month, and none more so than Fiat Chrysler, which saw its average U.S. transaction price rise 6.2 percent, year over year. Can you guess which segments pulled in the most extra money per vehicle? Bet you can.

At the other end of the yardstick, two foreign automakers basking in the glow of a very healthy sales month saw their average transaction prices fall.

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August 2019 U.S. Auto Sales: An Incomplete Puzzle

Reporting on American auto sales without including the Detroit Three is like talking about great racing drivers without mentioning the names Schumacher, Petty, or Senna. Nevertheless, here we are. Thanks to Detroit’s decision to release sales data only on a quarterly basis, a big chunk of the picture is missing. Even the big guns at Automotive News have given up trying to estimate Detroit numbers in an effort to fill in the blanks.

Everyone else is still playing fair ball, though, so let’s examine how the rest of America’s automakers fared last month.

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Incredibly Shrinking Fiat 500 Finally Dropped in North America

The model that helped relaunch a long-departed brand — a brand which subsequently failed to clear the tower — is effectively dead in North America. Fiat Chrysler has taken the retro-themed, pint-sized Fiat 500 off life support, removing it from the brand’s North American offerings for 2020.

The newly turbocharged 500, its beefier Abarth brother, and the eco-warrior 500e electric, were victims of America’s unrelenting desire for large, spacious automobiles. The illness took hold almost as soon as the 500 arrived.

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Toyota Celebrates 20 Years of Tundra, But the Truck Doesn't Change and Neither Does Its Marketplace Performance

With remarkable consistency, Toyota has sold over 2.2 million Tundra pickups over the truck’s 20-year history.

Toyota began building the first-generation Tundra in Indiana in May 1999; the truck went on sale 20 years ago this summer. Not surprisingly, Toyota’s celebratory words as the Tundra turns 20 relate in large part to longevity: a million-mile ‘07 Tundra; an ‘18 driven repeatedly through a forest fire on rescue missions.

It’s not as though Toyota is going to flaunt any newfangled technology or headline-grabbing capabilities. The Tundra is basically the same truck it’s been since production of the second-gen Tundra began in Texas in 2007.

Just as the truck fails to evolve, so too does its sales performance: the Tundra just keeps on selling.

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Automakers Sweating After China Announces 25-percent Tariff on U.S. Autos

The trade war between the United States and China heated up again Friday, with the People’s Republic pulling a U-turn on its treatment of U.S.-built vehicles. Come mid-December, China will hit inbound U.S. vehicles with a 25-percent tariff. Auto parts will see a 5-percent tariff.

The new — well, resurrected — auto tariffs are a reactionary measure, coming after U.S. President Donald Trump proposed, then delayed, the levying of a 10-percent tariff on $300 billion of Chinese goods. While some import taxes will hit in September, the full range of tariffs is expected to come into effect on December 15th. China’s auto tariffs, first levied last year and lifted earlier this year as an olive branch gesture, are part of a larger raft of tariffs impacting $75 billion of U.S. goods. A 5- to 10-percent tariff hits non-auto U.S. goods on September 1st.

It’s no wonder every automaker wants to build Chinese-market vehicles within that country’s borders.

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Dealership Dilemmas: Nissan Communications Reportedly Back Online

On Saturday, Nissan’s North American dealerships found themselves with a problem. A power outage at the automaker’s data center in Denver disabled a system dealers use to order vehicles, procure parts, check on recall statuses, obtain rebate information, and file warranty claims. As a result, the manufacturer’s communications in the U.S., Canada, and Mexico were disrupted. “Some of our dealer business applications have run in a reduced capacity using manual processing,” Nissan said on Wednesday.

Dealers were not pleased.

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In a Slowing U.S. Auto Market, Minivan Sales Are Falling 7 Times Faster Than the Overall Market

The minivan as we know it is not dead. Credit for the minivan segment’s still-beating heart belongs in large part to the disappearance of most contenders – so few competitors remain that a handful of remaining minivan nameplates may well still sell in six figures in the United States in 2019.

Most automakers determined years ago that sticking their forks into this pie isn’t worth it; the pie was just too small. The absence of GM, Ford, Hyundai, and Volkswagen, along with the steady rise of the family-oriented crossover, caused the pie’s shrinkage to continue. Nissan and Mazda left, too, and the pie kept shrinking.

In fact, the rate at which the minivan pie is shrinking has picked up speed. Auto sales are slowing, to be fair, but U.S. minivan sales volume in 2019 is slowing nearly seven times faster. And no, for FCA and Toyota and Honda and Kia, the whole “bigger slice of a smaller pie” argument just isn’t holding water these days.

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With Its Purpose-built Comeback Car, Lincoln Aims to Dethrone Cadillac

We’re not going to sugarcoat it — Cadillac routinely bests Lincoln in terms of sales. General Motors’ luxury marque constantly carves out a larger portion of the domestic market and has managed to make global inroads Ford’s premium division has not. For example, Cadillac saw 228,043 deliveries in the People’s Republic of China last year. Lincoln only saw 55,315.

However, the race at home is much closer. Last year in the United States, GM shipped 154,702 premium-badged cars to Ford’s 103,587. But Cadillac has been losing ground in North America while Lincoln has remained comparatively stable, slowly rebuilding its strength. Cadillac may still outsell Lincoln overall, but the gap is beginning to narrow.

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Dogs Go to Work As the Subaru Crosstrek Seemingly Passes Its Peak

Spend a few minutes talking to a normal, regular person, and they’ll probably reveal very little knowledge of a vehicle’s mechanics or specs while boasting plenty of knowledge of a brand’s (or vehicle’s) marketing efforts and media coverage.

The general consensus, at least according to your author’s mother, is that dogs help sell cars. Full stop. At the very least, they sprinkle a helping of feel-good fairy dust over a brand, leaving a positive impression of the company in the minds of viewers. Audience manipulation is the sole purpose of advertising.

As Subaru walks away from its most recent sales month with yet another healthy volume increase, however, one model seems to have run out of momentum. It remains to be seen if a heaping helping of dogs can turn it around.

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New BMW Boss Rekindles the Rivalry, Politely Demands Employees Catch Up to Mercedes-Benz

Longtime luxury rivals BMW and Mercedes-Benz may have signed onto an autonomous vehicle/ride-hailing partnership earlier this year, but that doesn’t mean the two companies go around holding hands. The competitive spirit is still there; AV development just carries a price tag neither company wants to pay in full.

For BMW as well as M-B, the lucrative core business of selling luxury vehicles to a well-heeled clientele remains top of mind, and Bimmer’s new boss isn’t happy that his Stuttgart rivals are running away with the sales crown.

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Fueling Stations Reach Parity in UK As Subsidy Cut Sinks Plug-in Hybrids

The United Kingdom, a highly populous (and heavily taxed) country that’s smaller than 11 U.S. states, may serve as a canary in the coal mine for electric vehicle adoption. If there’s enough places to charge up your EV, will buyers make the switch?

From across the pond comes news that, for the first time, the number of public electric vehicle charging stations has surpassed that of gasoline and diesel stations. It’s been a long road, as “normal” stations have been on a steady decline since 1970. EV stations popped up in earnest earlier this decade, fueled by government investments and green group initiatives, as well as efforts by automakers eager to provide fuel sources for their new vehicles.

Battery-electric vehicle market share in the UK in July? 1.4 percent.

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Beleaguered Minivan Plant Granted a Reprieve

Home to the Dodge Grand Caravan, Chrysler Pacifica, and now the lower-tier Chrysler Voyager, Fiat Chrysler’s Windsor Assembly won’t see an expected shift cut next month. Instead, thanks to an uptick in volume, company brass has decided to ride out the year.

Originally scheduled to shed a shift (and along with it, about 1,500 jobs) at the end of September, Windsor Assembly will continue with its current workforce until at least New Year’s, Driving reports.

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Inventory Dips, but That's Where the Good News Ends

The cooling off of the U.S. auto market wasn’t immediately and universally addressed via a production slowdown, but as year-over-year sales losses piled up, automakers began to get in line. Downtime rose, shifts were cut, and the country’s bloated new car inventory began to thin.

August brought the trimmest number of unsold vehicles seen in the past year, but that doesn’t mean they’ll be flying off lots.

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In Honor of Its 25th Birthday, Honda Cranks the Odyssey up to '10'

Ten speeds, that is. While the 2019 Odyssey only offered a 10-speed automatic in the lofty Touring and Elite trims, for 2020 the tranny becomes standard across the range. What’s the occasion? Well, a quarter century of life, for one, but the continued decline of the once-hot minivan segment can’t be discounted.

For buyers eager to unload an extra $1,500 on their 2020 Odyssey, Honda has a birthday package ready to go for all trims. Minivan ownership is already a special experience, but Honda wants owners to rub it in everyone’s face.

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Infiniti at 30: Special Editions and Uncertainty

As it blows out the candles on its 30th birthday cake, Infiniti’s biggest problems aren’t rocks and trees, but sales. That, and a shaky financial foundation underpinning its parent’s house.

Unlike in 1989, when the fledgling premium brand tempted buyers to pick up a new Q45, um, sight unseen, Infiniti is doing all it can to draw pairs of eyes to its real, physical vehicles, launching an Edition 30 trim package to mark the anniversary.

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  • Redapple2 jeffbut they dont want to ... their pick up is 4th behind ford/ram, Toyota. GM has the Best engineers in the world. More truck profit than the other 3. Silverado + Sierra+ Tahoe + Yukon sales = 2x ford total @ $15,000 profit per. Tons o $ to invest in the BEST truck. No. They make crap. Garbage. Evil gm Vampire
  • Rishabh Ive actually seen the one unit you mentioned, driving around in gurugram once. And thats why i got curious to know more about how many they sold. Seems like i saw the only one!
  • Amy I owned this exact car from 16 until 19 (1990 to 1993) I miss this car immensely and am on the search to own it again, although it looks like my search may be in vane. It was affectionatly dubbed, " The Dragon Wagon," and hauled many a teenager around the city of Charlotte, NC. For me, it was dependable and trustworthy. I was able to do much of the maintenance myself until I was struck by lightning and a month later the battery exploded. My parents did have the entire electrical system redone and he was back to new. I hope to find one in the near future and make it my every day driver. I'm a dreamer.
  • Jeff Overall I prefer the 59 GM cars to the 58s because of less chrome but I have a new appreciation of the 58 Cadillac Eldorados after reading this series. I use to not like the 58 Eldorados but I now don't mind them. Overall I prefer the 55-57s GMs over most of the 58-60s GMs. For the most part I like the 61 GMs. Chryslers I like the 57 and 58s. Fords I liked the 55 thru 57s but the 58s and 59s not as much with the exception of Mercury which I for the most part like all those. As the 60s progressed the tail fins started to go away and the amount of chrome was reduced. More understated.
  • Theflyersfan Nissan could have the best auto lineup of any carmaker (they don't), but until they improve one major issue, the best cars out there won't matter. That is the dealership experience. Year after year in multiple customer service surveys from groups like JD Power and CR, Nissan frequency scrapes the bottom. Personally, I really like the never seen new Z, but after having several truly awful Nissan dealer experiences, my shadow will never darken a Nissan showroom. I'm painting with broad strokes here, but maybe it is so ingrained in their culture to try to take advantage of people who might not be savvy enough in the buying experience that they by default treat everyone like idiots and saps. All of this has to be frustrating to Nissan HQ as they are improving their lineup but their dealers drag them down.