Tag: Volume

By on March 10, 2020

Some 12 years and one month ago, Tesla CEO Elon Musk delivered the firm’s first electric vehicle… to himself. Fast-forward to today, and electric vehicle are sprouting from automakers the world over — including the “legacy” automakers Teslaphiles so often deride as out of touch.

On Monday, the company that opened the floodgates for EV proliferation marked a production milestone once thought of as inconceivable: its millionth car. (Read More…)

By on September 26, 2018

tesla model 3

Tesla Motors is currently offering up a bevy of incentives, even a few it once discontinued, in order to maximize deliveries before the end of the quarter. The brand has also reached out to enthusiastic owners who may want to help during its time of need, creating a weird sort of volunteer army for itself.

The company is desperate to prove to investors that Model 3 volume is making meaningful headway before its next shareholders meeting. As you’ll recall, the Department of Justice opened a criminal investigation after the Securities and Exchange Commission began a civil probe into Elon Musk’s August tweet about possibly taking Tesla private. The automaker also fired more than 3,000 employes over the summer and lost several important executives. It’s been a rough year for the brand, which makes having a good quarter all the more important.

While a significant portion of that battle is being waged at the factory, helped by simplified paint options and new car carriers, Tesla thinks it can move enough extra metal at its delivery centers to make up some of the difference.   (Read More…)

By on April 12, 2018

lincoln navigator grille badge lincoln logo

While both Buick and Cadillac have a healthy lead over Lincoln in terms of domestic deliveries, the space between them is far more pronounced in China. At home, Ford moved 111,159 examples of its premium marque in 2017 against Cadillac’s 156,440. However, China’s Caddy sales clocked in at 175,489 last year — a number Lincoln could only muse about in its wildest fantasies.

That’s because Ford exports all of its luxury vehicles to China, while GM tends to build them locally. But the Lincoln brand shows a lot of promise in Asia. Ford moved roughly 80,000 vehicles in the People’s Republic in 2017 and 54,124 of those models wore the Lincoln cross. In theory, if Ford could localize and bolster its product lineup within the country, a higher volume would be all but assured. It’s a theory the automaker intends to test, too.  (Read More…)

By on April 9, 2018

2018 Lincoln Navigator

Lincoln is a brand that never fully recovered from the post-recession sales slump. While volume has improved over the last several years, 2017 actually saw a very slight decrease in overall deliveries. That’s a shame, as we’ve seen Lincoln making efforts to turn things around.

Sure, the domestic luxury brand could still stand to distance itself from mainstream Fords a bit more. But Lincoln has stopped attempting to sell Buick-grade luxury at Cadillac prices and seems intent on pursuing more elegant designs. Still, Ford Motor Co. CEO Jim Hackett wants the company’s operational fitness in top form as soon as possible, and getting Lincoln’s overall value up is an important part of that goal.

One way of doing this is by leaning on utility vehicles. Navigator sales have improved dramatically since the fourth-generation model hit dealers and the Aviator seems to hold real promise. But it’s not scheduled for sale until the 2020 model year, which means Lincoln has to do more than just wait around until new and updated SUVs can right the ship. (Read More…)

By on February 12, 2018

nissan emblem badge logo

Nissan has long-standing tradition in North America of being a bargain brand. While the automaker fields plenty of affordable options with a base MSRP undercutting that of its rivals, it has also leaned on aggressive incentivizing and heavy fleet sales. This helped Nissan chase volume in the U.S., but CEO Hiroto Saikawa is no longer convinced it’s a winning strategy.

He’s tasking Denis Le Vot, Nissan’s new North American boss, to improve profitability and brand value after the company’s operating profit dipped 50 percent in the region in the last quarter of 2017.

It’s a tall order for Le Vot, who has only had a little over one month to settle into being the regional chairman for the brand, and Saikawa is only giving him another two to figure out how to pull it off. However, he’s hinting at a strategy that eases off dealers, offers fewer market incentives, and ditches a reliance on fleet sales.  (Read More…)

By on January 22, 2018

BMW X2, Image: BMW Group

Bavarian Motor Works has found itself in a situation familiar to most brands without a “full complement” of sport utility vehicles — slipping sales. BMW’s U.S. sales dipped 2.4 percent in 2017, and that was after a 9.5 percent drop in 2016. It cites an inability to supply the region with enough light trucks to meet demand as the primary reason for the sales slump and promises things will change for 2018.

The brand plans to launch the redesigned X4 compact crossover this year and hints that it might update the X5 too. Sales of the X2, which was present at the North American International Auto Show last week, should commence this March. On the other end of the size spectrum is BMW’s all-new X7 — which will become the automaker’s biggest model when it goes into production later this year.  (Read More…)

By on October 27, 2017

tesla factory fremont, Image: Tesla Motors

We’ve debated Tesla Motors’ production ramp-up in the past, coming to the obvious conclusion that the automaker has a long road ahead of it before its proposed volume goals can be reached. The company knows this and Elon Musk has repeatedly said scaling up Tesla’s vehicle assembly will be akin to a kind of “production hell.”

However, we haven’t done a comparative analysis to extrapolate just how ambitious Tesla’s targets truly are. Half a million vehicles by next year is a lot of annual production for any fledgling automaker. We assumed the company would do its best and we’d see how close it came to the bar at a later date. But, with the Model 3 production getting off to an incredibly slow start, it’s worth looking at how far Tesla’s factory in Fremont, California, will have to climb to achieve the desired numbers.

It isn’t looking particularly good in the short term.  (Read More…)

By on August 6, 2017

Müller-Ötvös and Rolls-Royce Phantom

Rolls-Royce Motor Cars Limited is on track to become the highest volume automaker in the world someday. Management is keeping it under wraps but volume has been exploding over the last few years. For 2014, the brand delivered a record 4,063 cars, up 12 percent on its volume for 2013 — closing the gap with Toyota’s 10.23 million global sales.

Unfortunately, Rolls’ five year volume streak didn’t last but it is creeping back up after some minor setbacks. For 2016, the brand announced its second highest ever annual sales result in the marquee’s 113-year history, up 6 percent on its 2015 results, for a total of 4,011 global sales. While it looks like the premium automaker has — once again — placed Toyota’s volume back in its sights, Rolls-Royce doesn’t want to get too cocky and has implemented a strategy that should keep the customers pouring in.  (Read More…)

By on July 3, 2017

2017 Hyundai Tucson - Image: Hyundai

Since 2009, Hyundai’s North American volume has seen record sales every single year. While the last few annual assessments haven’t resulted in the same volume boom as the immediate post-recession years, the company hasn’t seen any shrinkage — despite below-average incentive spending and a lineup that doesn’t exactly sync with the region’s evolving automotive tastes. Hyundai dealers are probably singing the brand’s praises and getting its logo tattooed on their staff then, right?

Not quite. While Hyundai has achieved nearly a decade of growth in the Wild West, dealers are growing increasingly disappointed with its tactics and are less than enthused about future business prospects — especially as it doesn’t appear Hyundai has any interest in scaling back car volume for the sake of SUV sales.

In fact, while both the Hyundai Elantra and Sonata remain higher-volume models, both have undergone a noticeable delivery decrease since 2012. Meanwhile, sales of utility vehicles like the Santa Fe and Tucson have nearly doubled in the same timeframe. Hyundai put 62,817 Tucson SUVs onto North American roads in 2012, and that figure rose to 113,502 last year. It could have been more, had the company been better at supplying those vehicles.  (Read More…)

By on January 28, 2016

Ford announced Thursday that it had earned a record pre-tax profit of $10.8 billion for 2015 — including $2 billion in the fourth quarter — bolstered by pickup sales in the U.S. and strong growth in China.

The record-setting year for the automaker wasn’t much of a surprise — second- and third-quarter results set records along the way — but Ford’s ability to finally turn a profit in Europe may be the most unexpected news. The automaker had lost money in Europe since 2011.

Latin America, notably Brazil, will continue to be a sore spot for Ford and other automakers. Ford said Thursday it expects to lose more money there in 2016 than the $832 million it lost there in 2015.

(Read More…)

By on September 10, 2013

Screen Shot 2013-09-05 at 12.18.20 PM

It’s time to talk about Volkswagen. You know Volkswagen: they make the Jetta, which is possibly today’s most adept compact sedan at churning out lifelong Toyota customers.

(Read More…)

By on May 14, 2013

Cadillac_ATS_at_NAIAS_2012_(6677990619)

Cadillac may be gunning too hard for Germany’s domain of rear-drive sports sedans, but one area where The Standard of the World won’t be gunning for them is in the volume race. GM CFO Dan Ammann told Automotive News that unlike BMW, Mercedes-Benz and Audi, “We’re not going to be in every single segment that they’re in”.

(Read More…)

By on November 1, 2012

Ben Oliver’s essay in Automobile Magazine might be the best one I’ve read on Lotus and their existential predicament. While my own pieces are full of vitriol and cursing, Ben’s eloquent prose outlines the brand’s biggest problem; lacking the necessary volumes, they need to take advantage of economies of scale and high margins to survive as an auto maker. Sports cars that compete in the Porsche Cayman’s price range and performance envelope aren’t popular with buyers nor do they generate the volumes or profits necessary to keep an independent sports car maker afloat. The proposed option, a series of high-end sports cars built off a modular platform (similar to the Lotus-derived Aston Martin VH architecture) was met with little fanfare. The economic principles were sound, but the proposal alienated the faithful. Over to you, Best & Brightest.

By on November 7, 2011

With all the attention being paid to Volt sales, production and turn time in the wake of recent congressional criticism, I thought I’d update our recent chart of Volt sales versus production to see how GM’s wonder car is doing a month on. As you can see, there’s not much obvious change on the year-to-date chart, with both sales and production trending upwards. But if we zoom in on the most recent months, we can see something strange happening…

(Read More…)

By on October 7, 2011

The Chevrolet Volt may be beating cars like the Jaguar XF and the Lincoln MKT in the sales race, but GM won’t come close to building 120,000 of the plug-ins next year as the Department of Energy was expecting. Today GM confirmed to Automotive News [sub] that it will make 60,000 Volts next year… and it will do so while remaining on a single shift. GM had previously planned to add a second shift at the Det-Ham plant late this fall, but is putting that off until midway through next year, when production of the ’13 Malibu begins there. Until then, The General is adding 300 workers to the 10-hour, four-days-per-week single shift, a move the company says

will significantly reduce costs, and has no impact on the plant’s ability to make 60,000 Volts and Amperas (the European version of the Volt) in 2012.

Think 60,000 units is still more Volt than America will buy? Well, you’re right so far, but 15,000 of those will be exported to Europe, so GM only has to sell 45,000 US-market Volts next year. Although considering the Volt won’t crack 10,000 units this year, that’s still some strong projected growth. And as usual, the union local President sums up the situation with more candor than any executive would:

The sooner the better, but I guess demand will dictate when that happens. Hopefully we’ll get a third shift someday, too.

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