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 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 2, 2011, at 11:06 am
 November’s average annual selling pace (SAAR) in the US auto market reached 13.6 million units, which was the highest monthly rate this year and significantly stronger than last November’s 12.3 million-unit SAAR, based on analysis from J.D. Power’s Power Information Network® (PIN) retail transaction data and LMC Automotive. The SAAR in November also outpaced the 13.2 million-unit pace in October 2011.
Overall light-vehicle sales climbed 9.3% (on a selling-day-adjusted basis*) to 992,312 units from 871,299 units a year ago. Deliveries last month were partly bolstered by owners needing to replace their current vehicles, an early spate of holiday ads, and the upbeat mood of consumers during the post-Thanksgiving Black Friday and Cyber Monday sales events. Continue reading ›
Posted on December 2, 2011, at 8:03 am
 Dr. Mei Songlin Major improvements by both domestic and international brands in China’s competitive auto market, along with the introduction of 54 new and redesigned models during the past two years, have helped advance overall new-vehicle appeal among China’s new-vehicle buyers to 825 (on a 1,000-point scale), which sets a record high and is 17 points above last year’s 808 index, according to our 2011 China Automotive Performance, Execution and Layout (APEAL) Study.
China’s auto market continues to be the powerhouse of sales growth for most automakers globally, with passenger-vehicle sales projected to reach 12.9 million units by the end of 2011. J.D. Power’s 2011 China APEAL Study, which is based on evaluations from more than 17,459 new-vehicle buyers in 37 major cities across China, provides a comprehensive review and update of some of the major changes related to the appeal of models and brands and the evolution of tastes and preferences of China’s consumers. Continue reading ›
Posted on October 12, 2011, at 2:28 pm
 Mike Omotoso Ford Motor Co. has been increasing the number of models it will offer with 4-cylinder engines that are part of its EcoBoost engine program, both to boost fuel efficiency and to meet increasing CAFE standards. There are other automakers that are also making inroads with alternative powertrains to enhance the fuel efficiency of their fleet and meet CAFE standards. Continue reading ›
Posted on October 4, 2011, at 10:37 am
US light-vehicle year-over-year sales gains in September trumped news about uncertainty in the global economy, concern about the volatility of the stock market, and reports of lower consumer sentiment.
In September, retailers sold nearly 10%* more new vehicles in the US market than in the same month last year, based on J.D. Power analysis. September sales totaled nearly 1.051 million units compared with 956,639 unit sales a year ago.
J.D. Power’s analysts predicted that the pace for total US light-vehicle sales (retail and fleet) in September would hit 13.0 million units—which it did. In fact, the sales pace averaged nearly 13.1 million units in September. Continue reading ›
Posted on September 28, 2011, at 10:18 am
 Tim Dunne The complicated pas-de-deux carried on between General Motors and Shanghai Automotive Industry Corp. (SAIC)* in China may have gotten just a little more complex.
The two companies, which already operate 10 automotive-related joint ventures together, added an 11th JV company to their stable on Tuesday, September 20. This new JV was entered into specifically to develop electric cars in China. The new electric vehicles (EVs), according to General Motors, will not be based on the proprietary technology developed by GM for its Chevrolet Volt extended-range electric vehicle, or based on its Sonic small-car platform.
The EVs will be designed at GM’s Pan Asian Technical Center (PATAC) in Shanghai, another GM and SAIC joint venture. Who gets the new electric vehicles—and how they will be branded—was not announced. Continue reading ›
Posted on September 1, 2011, at 2:18 pm
In spite of Hurricane Irene’s lingering effects on the East Coast, including power outages and flooding, and a continued slowing of the US economy, which has hurt consumer sentiment, August US light-vehicle sales totals from a number of automakers were slightly stronger than anticipated.
All three Detroit-based automakers posted sales increases from August of last year, which had one less selling day. Both General Motors (+13.5%) and Fiat-Chrysler Group (+25.6%) deliveries were up in double digits, and Ford Motor Co.’s sales improved in the high single digits (+6.9%).
GMC, Jeep, Lincoln Outpace Industry
GMC (+35.1%) was the sales leader in terms of percentage gains among General Motors’ core brands, and sales of the Chevrolet Cruze compact passed the 20,000-unit sales mark for a fifth consecutive month, which likely made it one of the 10 best sellers in the US market. Chrysler’s Jeep brand sales increased by nearly 52% from last year as the automaker’s brands were helped by a 90-day-postponed-payment incentive on some models. Ford Motor Company said both Ford Explorer and Fiesta deliveries were strong, while Lincoln brand deliveries were up in double digits (+19.8%) from a year ago. Ford F-Series totals slipped slightly on a selling-day-adjusted basis*, although more than 48,000 large Ford pickup trucks were delivered and 41% were equipped with the 3.5-liter EcoBoost engine, according to Ford. Continue reading ›
Posted on August 29, 2011, at 7:15 am
 Marvin Zhu China’s government has earmarked a previously unimaginable 2 trillion yuan (about $300 billion) to build the world’s largest national high-speed railway network. So far, only about half of the total planned route distance of 25,000 kilometers (16,000 miles) has been completed. One of the most recent additions to China’s high-speed railway marvel is an express train between Beijing and Shanghai, which opened in June 2011, some two years ahead of schedule.
China’s ambitious “great leap forward” in industrialization and modernization has been understandably making headlines around the globe. However, these glowing platitudes abruptly turned somber on July 23, 2011, when one of the celebrated Beijing-Shanghai high-speed railroad trains crashed, killing 40 people and injuring some 200 others.
While bad weather and a subsequent system failure were found to be the main causes of the crash, some people speculate that the haste with which the railway was built—driven by thought of generating fast profits and political goodwill—should not be overlooked as a mitigating factor. China has been operating for some time on a progressively “build bigger, go faster” agenda, one where safety and reliability are not always given top priority.
Automotive Industry Caught in Bigger, Faster Tailwind
For more than a decade now, the “build bigger, go faster” mantra has prevailed in China’s automotive industry as well. Ever since China supplanted the US as the world’s largest automotive market in 2009, industry players have been in a fierce race to expand. Over the past two years alone, trillions of yuan have been invested in the car-making business, as automakers race to ramp up production. This frenzied expansion is expected to raise China’s vehicle production capacity to 31 million units by 2013, nearly doubling total sales recorded in 2010. Continue reading ›
Posted on August 22, 2011, at 7:28 am
 Jonathon Poskitt Recently, non-premium brand Opel/Vauxhall announced that it would introduce an “upmarket” city car to the European market, according to Automotive News. The new model, code-named “Junior,” will target consumers “who care about the status of their car, what it can do, what features it has, what telematics it has,” according to Nick Reilly, GM Europe* president.
Non-premium brands like Opel will always look to improve their market position, because if they can achieve this, it clearly benefits profitability. However, the intent to reposition a brand and the execution of it are two different things.
Opel Launches Junior in a Segment with Some Aging Products
The benefit for Opel in launching this new Basic segment car is that the segment, having seen much new model activity over the last 5 or 6 years, has seen this activity die down more recently. Many models in the segment have seen their market share suffer to some degree from model aging, which plays into the hands of Opel’s new Junior when it is launched. Continue reading ›
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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.*
