October U.S. Auto Sales Revive after U.S. Government Shutdown

Cars on LotDespite the disruption of the 16-day U.S. government shutdown (Oct. 1 – 16), new-vehicle sales climbed in the second half of the month for nearly all automakers. More than 1.205 million new vehicles were delivered in October, according to J.D. Power and its strategic partner LMC Automotive.

October total sales were up 6.4% from October 2012 on a selling-day adjusted basis (there was one more selling day in October 2013 than in October 2012*). However, deliveries were down 9.7% from September 2013. The seasonally adjusted annual selling rate (SAAR) translated to 15.2 million units—a million units stronger than last October’s 14.2 million pace, but slightly below the 15.3 million unit rate in September of this year.

Positive factors that benefited new-vehicle sales in October included declining average gas prices at the pump; continued availability of credit for financing and leasing vehicles—including low interest rates; and a slow but continuing recovery in commercial industries where trucks are needed—such as the energy and housing sectors. Continue reading ›

J.D. Power’s Dunne Discusses Global Green Move and Automotive Engineering

Tim Dunne

Tim Dunne

Reducing and even eliminating harmful exhaust emissions from cars and trucks and improving average fuel economy for vehicle fleets remain key challenges for global automakers, according to a recent J.D. Power paper, “The Changing Landscape of the Global Automotive Industry; A Global Shift in the Balance of Power.”

 Tim Dunne, director of global automotive industry analysis at J.D. Power, discusses some of the changes in the powertrains and architecture of future vehicles that are in process and are projected in the future as part of a global automotive industry paper that has been published in several Standard & Poor’s publications. Continue reading ›

J.D. Power Expert Offers Insight on the Shift in the Global Automotive Industry

Tim Dunne

The global auto industry is in flux with dramatic changes and growth in emerging markets—especially in the Asia-Pacific region, according to J.D. Power’s Tim Dunne, director of global automotive industry analysis.

In a recent paper that has been published in several Standard & Poor’s publications, including CreditWeek®, Dunne discusses some of these changes and provides future forecasts and an outlook for the industry in terms of auto production, changes in technology and engineering, and the impact of these changes on the environment and the economy.

A few highlights about the Asia-Pacific market are excerpted from “The Changing Landscape of the Global Automotive Industry; A Global Shift in the Balance of Power:”

• In 2013, LMC Automotive (J.D. Power’s strategic partner) expects the Asia-Pacific region to account for 36 million light-vehicle sales, representing 43% of the world’s total. Continue reading ›

Clean Diesel Makes Inroads in the U.S.; Sees Slowdown in Europe

Tim_Dunne

Tim Dunne

As clean diesel powertrains become more prevalent and popular in the U.S. market, especially in VW and Audi brand product lineups sold here, it appears that diesels are becoming less attractive in the world’s largest diesel market: Europe, according to a recent article, “Are Diesel Cars in Europe Starting a Long Slow Decline?” in Green Car Reports as well as J.D. Power research.

The current reduction in diesels in Europe may be mainly due to new regulations that have been passed by the EU and/or are being considered in individual European countries.

As recently as 2012, the diesel share in the European market was 46.0%, according to Mike Omotoso, senior manager of global powertrain at LMC Automotive, J.D. Power’s strategic partner. In 2013, LMC Automotive projects the diesel share to edge down by slightly more than 1 percentage point to 44.9%, and the outlook for 2014 is for a 44.0% diesel share in Europe—down 2 points from 2012. Continue reading ›