Tag: auto sales

By on May 26, 2022

While plug-in vehicles are catching on in Europe, representing 21 percent of all new registrations in the first quarter of 2022, they’ve been less popular in the United States. Only about 5.2 percent of American registrations were of the plug-in variety (representing hybrid and purely electric vehicles) during the same timeframe. Despite the industry spending billions to develop and market these vehicles, with some progress being made, the overall take rate within North America remains underwhelming.

Ardent fans of battery based powertrains will undoubtedly disagree. But a couple of studies came out this month that drove the point home. Autolist’s Annual Electric Survey dropped earlier this month, effectively outlining why EVs haven’t been able to make more headway in the states.  (Read More…)

By on February 8, 2022

While it may not be on the cusp of supplanting Toyota in terms of sales, the Porsche brand has enjoyed relatively consistent growth since 2009. Despite 2020 representing a poor sales year for just about everyone who wasn’t producing vaccines, the German manufacturer weathered the storm better than most and came back to break a few records the following year.

By the end of 2021, Porsche had sold nearly 302,000 vehicles globally. It also managed to break its previous sales records in China and the United States. Considering that global production volumes have remained suppressed by supply chain problems, it was an impressive accomplishment. However, Detlev von Platen, Executive Board Member Sales & Marketing at Porsche AG, believes the automaker can still outdo itself in 2022.  (Read More…)

By on February 2, 2022

It’s a little early in the year to say anything definitive about 2022 vehicle volumes, however, the automotive industry has been signaling that production numbers should begin to rise in the coming months. While that sentence should be cause for a sigh of relief, there are parts of the industry that might not feel as good about it as you probably do.

With supply chain problems having drastically limited vehicle production during the pandemic, many dealers opted to price their goods well above anything that could be considered normal. This worked out poorly for many of the smaller outfits as larger retailers enjoyed record-breaking profits in 2021. Some manufacturers also benefited financially, as the chip shortage allowed them to prioritize their highest-margin products. Unfortunately for them, 2022 is likely to bring affordable vehicles back into play and gradually pull pricing closer to something approaching normality.  (Read More…)

By on January 25, 2022

For the first time since American muscle returned to the assembly line in earnest, Dodge’s Challenger has managed to outsell both the Ford Mustang and Chevrolet Camaro inside the United States. Though Mopar fans might point out that Dodge would win every year if we bothered to include Charger sales in the headcount or were more precise when making determinations about what constitutes a muscle vs pony car.

Regardless of semantics, the Big Three have their performance icons and the Challenger has taken the two-door sales crown for the first time in modern history. Sadly, it was less about Dodge making inroads with new customers than it was about the other brands flubbing things. Performance vehicles aimed at the middle class are presently experiencing a rough patch, with the Challenger having lost the least amount of ground in the last decade.  (Read More…)

By on January 14, 2022

After years of Ford unsuccessfully trying to court the Chinese market in the same way General Motors did, Blue Oval has finally hit an important milestone. For the first time ever, the Lincoln luxury brand has achieved more sales in China than in the United States.

On Thursday, Lincoln announced that it had delivered more than 91,000 vehicles in China in 2021 – representing an increase of 48 percent increase against 2020. Meanwhile, the brand managed to lose ground in North America with just 86,929 sales for last year. That’s the worst Lincoln has seen in over a decade, though the company has basically witnessed its share of the U.S. market seesawing in the wrong direction since the 1990s. (Read More…)

By on January 12, 2022

After a tough couple of years, consumers went into 2022 hopeful that unhinged automotive pricing and lean dealer lots would be a thing of the past. However, analysts and industry groups have gone from being cautiously optimistic just a few weeks ago to fairly sullen about the prospects of North American shoppers locating anything that could be considered a square deal.

Goldman Sachs recently issued a report that attempted to encapsulate the whole picture, citing sustained congestion at the ports, pandemic-related factory closures, market inflation, millions of people just dropping out of the workforce, and continued complications stemming from the semiconductor shortage. It estimated that vehicle pricing would fail to go down — and may even pitch up in the first half of 2022 — until all of the above issues have been addressed. But it was hardly the only group chiming in or suggesting that the hard times could last through 2023, as the goalpost for what should be deemed acceptable is moved yet again.  (Read More…)

By on January 4, 2022

Japanese automaker Toyota Motor Corp looks set to embarrass American automakers on their home turf by ending the year as the U.S. market’s top-selling brand for 2021.

Toyota had previously reported it moved 688,813 vehicles in the United States from April to June, outperforming General Motors and setting the stage for the rest of the year. At the time, the domestic manufacturer claimed its numbers were down due to the global semiconductor shortage that continues to disproportionally impact American automakers. While there are a few sound logistical reasons for that, the chip deficit also becomes a convenient excuse for brands that cannot seem to get their general supply chains under control. No matter how you slice it, GM looks to have screwed up managing inventory and Toyota is picking up the slack. (Read More…)

By on January 3, 2022

With so many articles discussing how poor automotive sales have been through 2021, one could be forgiven for thinking this was going to be a hard year for anybody owning a dealership. However, the reality of the matter is that it’s a seller’s market and those who can sell are making a killing off everyone else’s misery.

The National Automobile Dealers Association (NADA) has reported that the ongoing deficit of product has helped the average store rake in more money than they did in 2020, breaking the previous twelve-month profitability record. Today’s average dealership is reporting a net pretax profit of about $3.38 million through October for 2021. That’s more than twice what was tallied within the same timeframe last year and really goes to show how much money can be made when the customer’s needs are the only items being discounted.  (Read More…)

By on December 20, 2021

If you’re in the market for a new vehicle, you’ve likely noticed that some of the models you were interested in aren’t available in your preferred format and happen to be accompanied by sizable dealer markups. Well the used market, formerly a refuge for those seeking a bargain and a shrewd way of dodging the steepest period of deprecation, isn’t doing much better.

According to Black Book, the typical transaction price for used vehicles has gone up by over $500 in less than a month. Pegged at $27,000 in November, the average secondhand car now trades for over $27,500. As we’ve recently covered just how wild secondhand vehicle prices have become in 2021, we’ll keep this one relatively brief. But it must be said that automotive values are starting to seem totally disconnected from anything that could be considered rational as cars now have MSRPs a third higher than they were at the start of 2021.  (Read More…)

By on December 9, 2021

Used-vehicle prices set another record last month thanks to elevated demand and suppressed production of new cars. Depending on who you ask, the typical transaction fee for a secondhand automobile rose nearly 50 percent in November vs the same period in 2020. While the pandemic had meaningfully suppressed demand during that time, that’s still a staggering increase over any 12-month period.

Sharing Cox Automotive’s Manheim Used Vehicle Value Index, Automotive News nailed down the annual difference to a 44-percent increase. This also represents the November pricing index swelling by 3.9 percent against October, which is noteworthy in itself. But what does that look like in dollars?  (Read More…)

By on October 5, 2021

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…)

By on July 22, 2021

Years ago, waiting for a haircut, dental appointment, or psychological evaluation meant thumbing through a paperback filled with local listings of automobiles you had convinced yourself you might be in the market for. While primarily an exercise for wasting one’s time, there was always a chance you’d run to a payphone or whip our your Nextel to contact the seller so you could begin the delicate dance of commerce.

(Read More…)

By on June 29, 2021

With just about every resource trading at unappealing premiums, now may not be the time to make any major purchases unless you’re a financial masochist or so wealthy that the normal rules of living no longer apply. But it remains a seller’s market for just about everyone, including the plebian masses. Giant, unaccountable financial institutions will happily purchase your home and there’s a sea of disenfranchised people who will give you their last dollar if you can help them make sense of an increasingly hectic world. In the automotive sphere, we’ve seen dealerships and rental agencies hungrily scooping up secondhand automobiles for unheard-of prices just so they’ll have something on the lot.

The end result is a lot of overpriced merchandise that larger businesses are desperate to buy so they can pass on their elevated expenses to the customer. We’ve already covered the stupidly high prices surveyed consumers claimed they’d be willing to spend on a new vehicle. But there have been numerous reports claiming those days are coming to an end, with just as many suggesting we’re still in the thick of it. Yours truly has been wondering just how close to reality those assertions happen to be.  (Read More…)

By on June 14, 2021

With automakers having a difficult time keeping production schedules thanks to COVID restrictions nuking demand and upending supply chains, 2021 arrived with plenty of problems. Desperate to replenish fleets they had sold off while everyone was locked indoors, rental agencies went on a used car buying spree. But it wasn’t just rental fleets that needed to be restocked, dealerships are also finding themselves with fewer models on the lot than they’re accustomed to — which is a bad position to be in when surveys have revealed consumers are now willing to pay stupidly high prices for automobiles.

They’re reportedly going to great lengths to acquire used cars as the great buyup of 2021 continues.  (Read More…)

By on April 9, 2021

The China Association of Automobile Manufacturers (CAAM) is reporting its home market grew 74.9 percent in March, resulting in nearly 2.53 million new-vehicle deliveries. While we’re often skeptical of the organization’s rosy predictions and tallies, it’s claiming the recent sales surge is the direct result of how bad things had been in the previous year. China instituted some of the most aggressive lockdown protocols of any nation in the initial stages of the pandemic and had already been struggling with a declining vehicle market in 2019.

CAAM is making no illusions about the gains being based on anything other than how horrible March of 2020 was and doesn’t want to overpromise moving ahead. It’s a warning that the semiconductor shortage will likely worsen as the year continues, dampening Q2 projections. But the organization has not yet revised its forecast for next year’s overall sales. Last December, CAMM predicted roughly 26.3 million vehicles would be delivered by the end of 2021 and appears to be running with that target.

(Read More…)

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