Posted on April 30, 2012, at 2:00 am
 Mike VanNieuwkuyk Vehicle owners expect safety features and technologies that have been in the market for a longer period of time to be included in their vehicle’s base price, according to our 2012 US Automotive Emerging Technologies Study, which measures vehicle owner interest and purchase intent for 23 emerging technologies, before and after a market price is revealed.
Among owners of both Premium and Non-Premium vehicles, more traditional emerging safety features that are expected to be standard content and included in a vehicle’s base price are: Blind Spot Detection (54% for both groups); Electronic Stability Control (45% Premium and 43% Non-Premium); and Rear-Vision Camera (51% Premium and 42% Non-Premium).
Wireless Connectivity is Among Most Considered New Features
As expected, among the new and more traditional emerging automotive technologies evaluated in the study, vehicle owner interest and purchase intent declines once a market price is introduced. Only the Wireless Connectivity System emerging technology appears in the top-five considered technologies before and after a market price is given in the study, which is based on responses from more than 17,400 vehicle owners. Continue reading ›
Posted on April 25, 2012, at 3:42 pm
Charles Mills
Auto dealers in China report experiencing lower profits on 2011 operations in comparison with results in 2010, mainly due to factors including a changing economic and regulatory environment in China, coupled with a proliferation of brands and models, according to our 2012 China Dealer Attitude Study.
The percentage of dealers . . . Continue Reading Changing Economic Factors in China Curb Dealer Profits
Posted on April 24, 2012, at 7:20 am
 Although April is considered a challenging month for sales comparisons because the Easter holiday falls in April some years and in March during other years, signs of sustained growth in the U.S. auto market are evident. In fact, the daily selling rate in April is projected to be 37,000 units, which is higher than the 34,000-unit average rate in the first quarter. (Note: There are 24 selling days in April 2012 vs. 27 in April a year ago.)
Retail sales volume this month is projected to increase 8%* from April 2011, which matches the first-quarter year-over-year increase of 8%. Sales in April are predicted to reach 894,100 units, which translates to a seasonally adjusted annual rate (SAAR) of 10.2 million units, based on the monthly sales forecast update from our Power Information Network® (PIN) and LMC Automotive.**
Total (retail and fleet) light-vehicle deliveries for the month are forecast to reach 1.13 million units, which is up 11% when adjusted for the number of selling days, from 1.15 million units in April 2011. This pace is equal to a SAAR of 13.8 million units vs. 13.2 million a year ago. Higher fleet sales continue in April, with fleet volume expected to account for 21% of total sales this month. Continue reading ›
Posted on April 23, 2012, at 12:09 pm
Stephanie Haina
What are the newest and best ways to use available platforms—such as smartphones and tablets as well as PCs and TV—to attract and reach automotive shoppers? This could be a topic for a panel discussion by an internet search engine expert, OEM marketer and auto dealer official at the J.D. Power . . . Continue Reading Learn How to “Personalize” Web Content at the Upcoming J.D. Power Auto Marketing Roundtable
Posted on April 23, 2012, at 4:00 am
 Mike VanNieuwkuyk Small-car sales in the U.S. market are up by nearly 102,000 units in the first quarter of 2012 vs. the same period a year ago, based on our research. The increase in small-car sales, especially sub-compact deliveries, during the first quarter, may be a direct effect of several key market drivers coming together. Manufacturers’ advances in powertrain technology in addition to automakers enhancing feature content in smaller vehicles have appealed to consumers’ shifting needs. Continue reading ›
Posted on April 18, 2012, at 10:14 am
 The first-quarter of 2012 ended on a strong note for automakers in the U.S. market despite higher gas prices, which began to drop slightly in the past week and in spite of the negative influence of still high unemployment rates. On a seasonally adjusted annual selling basis, the first-quarter selling rate, or SAAR, averaged 11.7 million units for retail and 14.5 million units for total light vehicles—a tempo that was ahead of our earlier retail and total sales forecast.
In fact, the selling pace in the first three months of 2012 outperformed the J.D. Power annual sales forecast for the first time since 2008, when the auto market began slipping into recession, according to Jeff Schuster, senior vice president of forecasting at LMC Automotive.*
Fiat-Chrysler and VW Groups Make First-Quarter Sales Headlines
Two multi-franchise automakers, Fiat-Chrysler and Volkswagen Groups, achieved stellar double-digit sales and share gains in the first quarter of 2012 vs. their results in the same 3-month period a year ago. In addition, two of the four smaller independents, Fuji Heavy Industries’ Subaru brand and Mazda, also posted robust, double-digit year-over-year gains vs. the same period in 2011. Continue reading ›
Posted on April 16, 2012, at 2:00 am
 Tim Dunne Luxury brand automakers and dealers operating in China—who discovered their own metaphorical gold mine in the country’s automotive market these past few years—may be starting to find mining their mother lode has become more difficult.
According to LMC Automotive*, sales of luxury vehicles in China have, on a percentage basis, grown faster than the total market in China during the past few years, with 2011’s luxury-vehicle sales totaling nearly 600,000 vehicles, up 30% compared to a year earlier (and much higher than the total industry growth rate of 10% in 2011). A booming economy, rapid individual wealth creation, and a relative dearth of luxury-vehicle inventory from which to choose have created an enviable vehicle seller’s market in China. Dealer gross profit margins on a single vehicle frequently range from US$10,000-US$30,000, according to J.D. Power research. Continue reading ›
Posted on April 13, 2012, at 2:00 am
 Mohit Arora Surinder Singh (a fictitious name) currently drives a BMW 3 Series, is the male head of household and earns anywhere from Rs 1 lakh to Rs 5 lakhs (US $1,954 to US $9,770) or…infinity. This is the typical profile of a luxury new-car buyer from our 2011 India Sales Satisfaction Index (SSI) Study.SM
In March 2012, India’s Finance Minister Pranab Mukherjee announced a hike in the basic customs tax on luxury cars. Large cars (excluding imported models) over 4 meters in length and with engine size larger than 1.5L are subject to a new excise duty of 27%—up from 22% + Rs 15,000 (US $293) of the fixed duty. This means that luxury vehicles are set to become more expensive in India—by up to Rs 3 lakhs (US $5,748)—as automakers are compelled to pass on the additional burden to consumers.
Given the substantial increase in cost to the consumer, the question to consider is: Will the price hike deter buyers like Mr. Singh from making a luxury car purchase in the future? Continue reading ›
Posted on April 12, 2012, at 2:00 am
Matthew Racho
We expect this alliance to have a very positive effect for dealers, manufacturers, and our industry. The alliance will allow for increased dealer participation across the U.S., providing deeper penetration into retail transactions across all markets, and enabling more extensive regional and local market analysis.
With over 20 years’ experience . . . Continue Reading Alliance with NADA Provides Key Benefits for Dealers and Automakers
Posted on April 11, 2012, at 11:05 am
 Although more than one-half of India’s vehicle owners with Original Equipment (O.E.) tires rely on roadside mechanics for service if they have a tire-related problem, over one-third (38%) take their vehicles to a retail outlet for tire repair or service, up from just 7% in 2011, according to our 2012 India Original Equipment Tire Customer Satisfaction Index (TCSI) Study.
This shift to service at authorized retail outlets, such as independent tire dealers or the vehicle dealership, reflects an increase in customer demand for better service, facilities and processes. Our O.E. Tire Study measures satisfaction among O.E. tire owners during the first 12 to 24 months of vehicle ownership. Factors evaluated, in order of importance, are: appearance, durability, traction/handling and ride. Continue reading ›
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