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 February 1, 2012, at 7:16 am
 Grace Hamulic More new-vehicle buyers in the US market replaced and traded in their aging models in 2011 than in 2010, based on a profile of demographic data from retail transactions with vehicle age and trade-in information collected by J.D. Power’s Power Information Network® (PIN).
More than one-half (52.7%) of mass-market, or non-luxury, new-vehicle transactions in 2011 included a trade-in compared with 49.1% of deals in 2010—a difference of 3.6 percentage points. Our PIN data also indicates that the average age of all trade-ins across the industry rose to 6.2 years on average, from 6.1 years in 2010. Among mass-market trade-ins, the average age rose slightly higher to 6.4 years from 6.2 years in 2010. Slightly less than 40% of new-vehicle transactions included a same-nameplate trade-in in both years. 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 18, 2012, at 7:47 am
 Three large pickups*, four midsize sedans and three compact models, including two compact conventional cars and one compact crossover (CUV), made up the 10 best-sellers in the US auto market in 2011. Three of the models, including the Ford F-Series, which was the top-volume model in the U.S. for the 30th straight year, were Ford products, while General Motors and Toyota Group each produced two of the 10 models with the highest sales volumes in the US market last year. Renault-Nissan Group and Fiat-Chrysler’s Ram brand each built one of the best-sellers, according to data collected by J.D. Power’s Power Information Network® (PIN) and LMC Automotive.
Some highlights for the 20 best-sellers in the US auto market in 2011:
• Half of the 20 best-sellers were domestic-brand models. Continue reading ›
Posted on January 9, 2012, at 8:32 am
 BMW and Mercedes-Benz brands treated the resolution of their 2011 sales battle in the U.S. market as if it were an election: The world had to wait about 24 hours longer than usual for monthly sales results before black smoke surfaced signaling that one brand had emerged as the sales leader.
 And the results confirmed that the BMW Group brand edged out the Daimler Group brand, but just barely, for the American luxury-sales crown for last year. BMW sold 247,907 vehicles in the United States last year compared to 245,192 unit sales for Mercedes-Benz—a difference of just 2,715 units, or about 1%. 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 January 5, 2012, at 9:45 am
 Tim Dunne I appreciated recent comments from one of our readers, Tim S. from Wisconsin, about a post “New China Duty Only Impacts Makers of Vehicles with Larger Engines” on the minimal impact of a new duty that has been imposed by the Chinese government on cars imported from the U.S.
I want to address some of the reader’s questions and concerns.
First, what percentage of vehicles with larger engines are produced in China by General Motors and Ford? Between GM and Ford, approximately 99% of the vehicles they produced in China in 2011 were fitted with sub-2.5-liter engines.
As for GM and Ford vehicles that are exported to China from the U.S., I would guess (the data is not readily available) that nearly the opposite is true, and that nearly all are fitted with engines greater than 2.5 liters. But let’s put things into perspective: In 2011, GM and Ford built and sold nearly 1.6 million vehicles in China, but their combined exports to China from the U.S. were only some 35,000 vehicles (or a ratio of 50-to-1 of locally built vs. imported vehicles.) Continue reading ›
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