Tag: auto sales

By on August 6, 2019

Maserati posted an ugly financial report for the second quarter of 2019. Revenue was down 40 percent, resulting in a loss of $132 million before interest and taxes. The good news, according to Fiat Chrysler Automobiles, is that the brand will become profitable once new product hits the ground.

The bad news? None of those vehicles are scheduled to arrive until after 2020, meaning Maserati probably won’t see any improvements until sometime afterward. FCA CEO Mike Manley has already said the rest of 2019 will be ugly for the brand, though he remains hopeful that the 10 new or refreshed vehicles the premium nameplate had in the works would help it turn a corner.  (Read More…)

By on August 6, 2019

We’ve spent the better part of 2019 describing how unwell the automotive markets of China, Europe and North America have become, which might accidentally lead some to believe that most other markets are performing better. While Brazil expects continued expansion and a presumably healthy 2019, its rosy outlook is unique.

Japan saw a modest decline in registrations (just 0.3 percent) through the first half of the year, while Russia recorded slippage of 2.4 percent. But figures from India were far worse. In fact, the country is looking at the biggest sales slump in almost twenty years. Early estimates suggest passenger vehicle registrations may have plunged as much as 30 percent in July, after falling 17.5 percent just a month earlier. Most annual outlooks forecast a double-digit decline in overall sales.  (Read More…)

By on July 30, 2019

We’re now in the seventh month of declining automotive sales in the United States. However, global sales haven’t fared any better. China posted its worst-ever monthly decline more than once this year with specific brands claiming as much as 70-percent slump in sales through the first half of 2019. Things are also going badly in Europe and have been for quite some time, with June playing host to some exceedingly bad metrics.

In fact, North America has had it comparatively good since its troubles hadn’t become truly persistent until the start of this year and the monthly dip rate has been been less severe. That does not, however, make the situation in the U.S. sunshine and roses. (Read More…)

By on July 29, 2019

2020 Chevrolet Corvette Stingray - Image: Chevrolet

In accordance with all that is true in the U.S. sports car market, General Motors is about to sell 2020 Chevrolet Corvette C8 Stingrays by the truckload before settling in to a few years of significantly less volume.

Even casual industry observers understand that trend. Between the hype, the early adoption fervor, and the performance leaps generally represented by a new species of sportus caricus, shoppers tend to turn en masse to the newest, flashiest, boldest two-door. That pattern is amplified by vehicles with legendary status.

Fortunately, the legends aren’t as inherently prone to suffering from dramatic, post-hype declines in demand (See: FR-S, Scion.) History tells us General Motors’ 66-year-old sports car will surge some 40 percent in 2020 and then continue rising in 2021 before dipping somewhat in 2022.

The Corvette average buyer age is a whole ‘nuther story. (Read More…)

By on July 25, 2019

Buick Regal Mistaken Identity commercial screenshot - Image: Buick/Youtube

Encore, not Regal. Regal TourX if you please, not the Cascada. No to the LaCrosse, yes to the Enclave. Regal Sportback shunned, Envision approved.

This isn’t an elementary analysis of the pro-crossover/anti-car trends of the marketplace or GM’s China-centric Buick brand. Rather, it’s the message Buick seems to be sending in its own advertising.

Of course, that’s not the official line from Buick PR. But the more you watch the six-month-old “Mistaken Identity” commercial, the more you wonder what Buick must think of its own cars. (Read More…)

By on July 10, 2019

Automotive retail sales in China rose slightly last month, representing the first uptick in volume over the last year, according to Bloomberg. But those gains were the result of a nationwide fire sale of backed-up inventory that dealers were tired of seeing clutter up their lots. Officially, the China Association of Automobile Manufacturers (CAAM) says the new vehicle market still kind of sucks.

For June, wholesale deliveries of new passenger vehicles fell 7.8 percent to 1.73 million units. That’s twelve straight months of negative growth.  (Read More…)

By on June 21, 2019

If there’s one thing I loved about spending time in the offices of General Managers and dealership principals, it was hearing about the harebrained schemes they had to bring customers into the dealership. GMs see an average of 80 or more vendors every single month — there’s always a new piece of software, a new way to buy inventory, even a new way to wash the windows. Invariably, due to some combination of pressure to meet unrealistic sales goals and the attractiveness of the sales rep, managers would fall for something that would make me shake my rather large head in disbelief.

The tough part was always maintaining a straight face when they told me about their plans. One of my fondest memories was listening to a GM explain that he had canceled all of his third party advertisers and ordered two Wacky Waving Inflatable Arm Flailing Tubemen. I wasn’t entirely surprised to see that the store was out of business 90 days later.

But one of my all-time, tried and true favorites is the “gypsy sale.” Click the jump to see our friend Greg’s question about these direct mail pieces and whether or not they actually work. (Read More…)

By on June 17, 2019

Due to weakening new-vehicle sales, the United States was staring down the barrel of near-record inventories a couple of months ago. Encouraged by the factory to ensure their lots were filled with the latest wares, dealers have watched their margins evaporate as employees and customers drowned in the sea of metal parked out front.

While still uncomfortably high, U.S. inventories started creeping back down in May. By the end of the month, the number of vehicles waiting to be adopted fell below 4 million for the first time since the beginning of 2019.  (Read More…)

By on June 4, 2019

Image: General Motors

Compared to previous months, May was a great month for U.S. light vehicle sales. Volume almost broke even on a year-over-year basis, falling a mere 0.3 percent. Keep in mind that last year was a high water mark for the industry, and average transaction prices are nudging into premium territory.

Still, year-to-date sales are down in the U.S. to the tune of 2.4 percent, with May’s slim loss serving as the fifth consecutive monthly decline. To that, Canada says, “Hold my Molson.” (Read More…)

By on May 23, 2019

The last couple of weeks (and, um, stories) have been awash in negative press and bad vibes for Nissan. Fortunately, mother nature stepped in to help one Florida dealership restore the cosmic balance by having a family of ducks move in.

A few months ago, a nest of ducklings hatched outside Sutherlin Nissan Orlando. They decided to stick around, creating an interesting incentive for customers. While we doubt the company would implement new dealer conditions that mandate an on-site petting zoo, it could be a novel solution to its sales woes. After all, promoting dogs worked extremely well for Subaru. Maybe Nissan can become the duck brand.  (Read More…)

By on May 23, 2019

According to a study commissioned by Nissan, Millennials are committed to saving the sedan in an era when crossovers have usurped much of the market. While much of the study revolves around asking people whether they’d consider purchasing a sedan in the future — something any smart shopper would say “yes” to — survey respondents also said there was very little difference in terms of customer satisfaction between crossovers and sedans.

That’s good news for any automaker that launched a bundle of new and refreshed sedans over the past few years. Can you think of one? (Read More…)

By on May 21, 2019

While it’s difficult to muster sympathy for giant corporations, the trade war current raging between the United States and China has left many stuck in an industrial limbo. Automakers want a bigger slice of the global market, but putting your eggs in either country’s basket will result in repercussions from the other.

We’re not saying this to promote some kind of commiseration for multinational companies; rather, it’s simply to remind everyone of how the auto industry has to conduct its business. Frequently, carmakers must play both sides. Toyota, already one of the world’s largest automakers, knows this better than anyone, and new documents shed light on some of the cloak-and-dagger aspects of maintaining its high-volume position.  (Read More…)

By on May 12, 2019

Subaru Legacy 2018 Logo Emblem Grille

Subaru may be getting too big for its britches. Despite seeming like it was positioned for nearly incalculable growth at the start of last year, the automaker’s latest financial report showed the period was actually plagued with problems. Over the full fiscal year, which ends on March 31st for Subaru, the company basically showed that its operating profit had been cut in half.

How could this have happened? Subaru’s commitment to all-wheel drive has given its sales a shot in the arm as the crossover craze has escalated and it has one of the best reputations in the business. Seriously, ask any automotive layperson what they think of the brand and they will almost always have something positive to say. However, for all of its presumed advantages, the company is reporting a 48.5-percent decline in operating profit (to 195.5 billion yen) and a 6.3-precent loss of global sales volume.  (Read More…)

By on May 1, 2019

With an extra selling day compared to the same month one year ago, auto sellers in America had the chance to improve their numbers in April. Subaru, the two Korean brands, and Nissan all managed that feat, while the likes of Fiat Chrysler and Toyota did not. Honda, for one, was roughly flat.

It all adds up to a softening market impacted by rising transaction prices and higher borrowing costs. At this rate, there’s a very good possibility that total light-vehicle sales in this country will drop below 17 million this year for the first time since 2014.

(Read More…)

By on April 22, 2019

For roughly the last decade, we’ve heard the motoring media bemoan Millennials as the generation that snubbed driving. Their inability to find and hold jobs that paid as well as their parents’ did at the same stages of life, combined with elevated costs of living and crippling student debt load, negatively impacted their purchasing power. Still, this generation might be just the tip of an iceberg the industry’s about to careen into.

As it turns out, Generation Z might even be less interested in cars. In addition to facing similar financial constraints as their older peers, most of them aren’t even bothering to get a driver’s license.  (Read More…)

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