Tag: auto sales

By on October 3, 2019

Tesla’s Model 3 became the best-selling car in the Netherlands last month, edging out the Volkswagen Polo. If you’re wondering how an electric automobile that goes for the domestic equivalent of $47,300 in Europe outsold VW’s $18,650 hatchback, take a look at the United States. Ford’s F-Series is always at the top of the charts here and, while it can be had for under $30,000, most have sticker prices nearly identical to the aforementioned Model 3.

Tesla also has the advantage of the Netherlands’ eagerness to adopt EVs, which has resulted in some heavy incentivizing. Honestly, if this author could bring himself to be surrounded by the Dutch on a daily basis, he’d be tempted by the parking perks alone.  (Read More…)

By on September 5, 2019

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. (Read More…)

By on September 4, 2019

lincoln navigator grille badge lincoln logo

My father has historically been a Ford man. Despite numerous forays into Chevrolet, Chrysler, Volkswagen and Toyota, he has always returned to the Blue Oval when the time came to purchase a keeper. Other nameplates came and went, receiving slightly less attention, but there was always at least one well-maintained Ford in the garage. As a result, I became familiar with dealerships using the suffix “Ford Lincoln Mercury” at a very young age.

For me, it was an opportunity to ogle the fancier sedans my father claimed didn’t make financial sense. “It’s the same car,” he would always say. “This one just costs more.”

When you’re eight and have nothing to distract yourself with other than the swizzle sticks you stole from the coffee area, fatherly advice has a way of sinking in. I’ve often wondered why automakers would even dare place their premium offerings so close to their less-expensive models. But times have changed.  (Read More…)

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…)

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