Posted on February 3, 2012, at 3:57 pm
 Leslie Cocco The global automotive industry, including North America, is better able to keep production in line with demand than in the past, according to John Humphrey, senior vice president and general manager of J.D. Power’s global auto operations. John told participants at our 2012 International Automotive Roundtable today that J.D. Power is largely bullish about the auto market in the near future, projecting global sales of 79.2 million light vehicles in 2012, and rising to 99 million unit sales in 2015.
Humphrey stated that more than half (55%) of global auto sales in 2015 are projected to be in emerging markets, and he pointed out that drivers of this growth include the return of sub-prime-credit customers to the market, decreasing credit restrictions, and increasing demand.
 John Humphrey Humphrey also said there are risks to this growth: geopolitical tensions in the Mideast Gulf region; the negative impact of the Euro debt crisis; unemployment; the economic slowdown in China; and the lack of infrastructure in emerging markets.
Humphrey also discussed the inevitable change in the market in relation to Gen Y consumers. Changes that he mentioned are technology-driven, and relate to the way that young shoppers expect to do their shopping—online, via mobile, and Apps—and the expectations they have for technology in vehicles. A majority, or 79%, of shoppers are going to third-party sites, rather than OEM or dealer sites, which makes brand management and messaging a challenge, he said. Continue reading ›
Posted on February 1, 2012, at 2:43 pm
 Although January often is the weakest sales month of the year in the US auto market, many automakers posted double-digit sales gains over the same month in 2010, indicating a good beginning for 2012. It appears that total light-vehicle sales might rise by more than 11% over January 2011 and that would translate to a 14.1 million-unit seasaonally adjusted selling rate (SAAR), according to J.D. Power and LMC Automotive analysis.*
All multi-franchise automakers, except for General Motors, posted increases, as did two of four independents—Mazda and Subaru. Fiat-Chrysler and Volkswagen Groups led the January gains with year-over-year increases of 48% and 44%, respectively. Not only did Chrysler Group LLC report stronger sales for its Chrysler, Dodge, Jeep and Ram brands than a year ago, but the company also said it earned a net profit of $183 million in 2011 vs. a loss of $652 million in the prior year.** VW Group sales in January were bolstered by strong demand for the Passat, now built in Tennessee. Among the independents, Mazda was a star with deliveries soaring 68%. Continue reading ›
Posted on January 25, 2012, at 4:01 pm
 During the first half of January,* U.S. car and light-truck sales were stronger than in the same period of January a year ago, which is good news for the industry following last year’s robust finish, according to J.D. Power’s monthly sales update based on analysis of retail transaction data collected by our Power Information Network® (PIN) with LMC Automotive.
January retail new-vehicle sales are expected to rise 6% from January 2011 and reach 681,000 units, which translates to a seasonally adjusted annual selling rate (SAAR) of 10.9 million units—well above a 10.3 million-unit pace in January 2011, but below the 11.3 million-unit pace in December 2011. Continue reading ›
Posted on January 23, 2012, at 11:30 am
 Jenny Gu Soaring demand for luxury vehicles in China has seen many premium brands make the country their second home. Land Rover may be the next premium brand to begin local production, following on the path taken by Audi, BMW and Mercedes-Benz. Even automakers without a strong foothold in China are increasingly eyeing the country as a key engine for future growth.
Localized Production is Key to Success in China Market
Automakers need to localize in order to truly establish themselves in this market. As some global automakers and their local partners are busy ramping up production of localized luxury models, many other foreign carmakers are seeking Chinese partners, as is required by the government, to set up new joint ventures. Lexus, Infiniti and Land Rover are among those considering localization in China in the near future.
Localization made slow progress before 2009. Between 2005 and 2009, the number of luxury models produced in China rose from just eight to nine. However, in 2010, the number of luxury models that were locally produced climbed to 11, and is expected to reach 15 by the end of 2012. By 2015, we expect 22 luxury models to be locally built, which will mean that those models will account for 60% of luxury sales, up from 56% in 2009. Continue reading ›
Posted on January 19, 2012, at 7:53 am
 In less than two weeks, members of the auto industry will get together for one full day of networking, idea sharing, gaining fresh insight, and discussing key issues affecting manufacturers, suppliers, retailers and customers at our J.D. Power International Automotive Roundtable at the Wynn Hotel in Las Vegas, NV.
This year’s Roundtable, to be held on Friday, Feb. 3, includes a reception immediately following the event that is co-sponsored by the National Automobile Dealers Association (NADA). The one-day event, which precedes the annual NADA Convention and attracts industry participants from around the world, will feature insight and projections about the automotive industry from our own J.D. Power experts, in addition to perspectives from key executives representing major automotive manufacturers and dealer groups. Continue reading ›
Posted on January 11, 2012, at 4:14 pm
 Mohit Arora The Asia Pacific region has been experiencing a steady increase in light-vehicle sales, and by 2015, it is projected that light-vehicle sales in the region will reach 44.1 million units. This rosy outlook for the Asia Pacific region is underscored by China reigning supreme in 2010 with 17.2 million units in light-vehicle sales, surpassing the next largest market—the United States—by more than 5 million unit sales. In India, light-vehicle sales reached 2.7 million units, making it possible for India to surpass more mature markets such as France, the U.K. and Italy to become the sixth-largest light-vehicle market in the world. Continue reading ›
Posted on January 10, 2012, at 8:44 am
 Mike VanNieuwkuyk With new-vehicle quality across the industry being very strong, automakers need to find new ways to differentiate and market their vehicles besides touting how reliable their products are vs. the competition. High quality is a minimum requirement in today’s market, as consumers can choose from many strong alternatives. In fact, not delivering high quality will only eliminate a product from a consumer’s consideration.
At the beginning of 2012, we see some current and future trends in the industry that are crucial for automakers and suppliers to think about in developing their product and marketing plans and strategies. Three are highlighted. Continue reading ›
Posted on January 6, 2012, at 12:40 pm
 The US auto market finished 2011 on a robust note in spite of concerns about both the domestic and global economies, as well as significant setbacks to production and inventory levels for two major Japanese automakers following the devastating March 11 earthquake and tsunami in Japan.
Nearly 10% more new cars and light trucks were sold in the US market during the past year in comparison to 2010—12.75 million unit sales in 2011 vs. 11.56 million unit sales in 2010. The final (retail and fleet) sales tally was only slightly stronger than projected by J.D. Power’s Power Information Network® (PIN) and LMC Automotive a few weeks ago in their monthly forecast. Continue reading ›
Posted on December 29, 2011, at 7:00 am
 Marvin Zhu After two years of strong growth, the car market in China has begun to slow. Chinese brands, which have grown considerably over the past few years, seem to have lostmomentum faster than their joint-venture counterparts. According to the J.D. Power Asia Pacific 2011 China New Vehicle Intender Study,SM the purchase intent toward local brands has fallen from 26% in 2009 to just 20% this year.
Although the local OEMs have continued launching new products, more and more car buyers are voting with their feet, as they find most of those “new models” are facelifts or copies of other popular models. Meanwhile, the joint ventures are offering cars of similar size at increasingly competitive prices. Continue reading ›
Posted on December 23, 2011, at 7:00 am
 David Sargent Earlier this month, BMW and Toyota Groups announced that they will work together to develop lithium-ion batteries for electric and hybrid cars. In addition, BMW will supply diesel engines to Toyota in Europe. Officials from both automakers signed a MOU at the Tokyo Auto Show for mid- to long-term collaboration on next-generation environment-friendly technologies.
The cost of new powertrain technology is very high and so it makes sense for automakers to form alliances in order to share development costs. This is especially so when the two automakers concerned have complementary strengths. BMW produces some of the most highly regarded diesel powertrains, which have been extremely successful in Europe. In turn, Toyota is a clear leader in electric and hybrid powertrains. Therefore, the agreement seems to make a lot of sense. Continue reading ›
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