Posted on February 21, 2012, at 7:55 am
Marvin Zhu, a senior analyst with LMC Automotive, who writes for China Automotive Monthly published by J.D. Power Asia Pacific, offers insight about the changing strategies of automakers in China.
 Automakers in China are changing their way of thinking in a market that is diversifying. Foreign brands are starting a new campaign to expand capacity.Volkswagen Group is going to set up new plants in Ningbo and Xinjiang, while Nissan Motor Co. will add a Dalian plant for Infiniti. General Motors, Ford, PSA, Hyundai, Honda, BMW and Toyota Groups are all going to have new plants ready for vehicle production in 2012. As these companies’ performance in other markets is expected to be less than robust, the booming Chinese market is much more of a sure bet. Continue reading ›
Posted on January 27, 2012, at 11:46 am
 Acura’s website ranks highest in usefulness in the J.D. Power and Associates 2012 Manufacturer Website Evaluation Study (MWES)SM—Wave 1. The premium brand website receives a score of 808 (on a 1,000-point scale), and performs particularly well in two of the four index measures: navigation and speed.* 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 November 28, 2011, at 8:18 am
 Several automakers announced during press previews at the L.A. Auto Show more aggressive plans to increase production at US assembly plants, partly to offset currency fluctuations and also to meet demand in the US and overseas. Highlights include:
• Volkswagen Group, which has a relatively new plant in Chattanooga, TN, where it builds the Passat that was named “Motor Trend Car of the Year,” is investing in the US market, according to Jonathan Browning, CEO and president, because VW expects to sell more than 300,000 vehicles in the United States this year. VW’s new CC, which will go on sale in the first quarter of 2012, is expected to be a “Top Safety Pick” with the Insurance Institute for Highway Safety (IIHS), Browning said. Continue reading ›
Posted on September 6, 2011, at 10:43 am
Ford remained the best-selling nameplate in August and also the nameplate with the best-selling model in the US market—the F-Series pickup. Ford captured 15.4% of industry sales in August, up from 14.26% a year ago. Brand sales rose 11.7% from August 2010—to 164,843 units.
Chevrolet continued to hold onto the second-highest brand share in . . . Continue Reading Ford Brand and F-Series Still Top-Volume Leaders
Posted on June 8, 2011, at 3:36 pm
Ford Motor Company recently announced that it is working on a new small engine—a 1.0-liter 3-cylinder powertrain with its EcoBoost technology. This smaller, fuel-efficient engine may reach the US market later this year in 2012 model-year cars, or will arrive early next year. Ford claims it will deliver horsepower and torque output equivalent to or better than their naturally aspirated 1.6-liter gasoline engine.
 Mike Omotoso The engine is expected to be used in the Ford Fiesta sub-compact, and will possibly be offered as an entry-level engine in the newly redesigned Ford Focus. The Focus and the Fiesta are both selling well, but Corporate Average Fuel Economy (CAFE) standards are getting tougher every year, and Ford and other manufacturers need to improve the fuel economy of all cars and trucks in their lineup to meet the higher miles-per-gallon requirements between now and 2016.
Downsizing of Powertrains Continues to Accelerate
In addition to Ford, other automakers have been downsizing their powertrains for the US market, and this trend will only accelerate in the future. The next-generation Chevrolet Malibu (2013 model year) will drop the V-6 option and the new Malibu will only be available with 4-cylinder engines. Continue reading ›
Posted on May 19, 2011, at 8:25 am
 Most premium brands had lower retail turn rates* than the industry average during the first four months of 2011, based on our Power Information Network® (PIN) retail transaction data. This year, the Audi brand had the lowest retail turn rate—new vehicles remained an average of only 23 days on dealer lots before being sold—which was even lower than last year’s 34 days, and less than half of the industry average retail turn rate (54 days) during the first four months of 2011. Land Rover had the next lowest turn rate—30 days—down from 35 days in 2010. Lexus followed with a retail turn rate of 36 days, which was up from 29 days in 2010. Continue reading ›
Posted on May 18, 2011, at 10:23 am
 David Cutting BMW, offering 11 models in the US market, currently is the best-selling luxury, or premium, brand through the first four months of 2011, according to data from our Automotive Forecasting division. BMW’s year-to-date sales through April totaled 71,417 units, which was a 10% improvement over last year’s same time period. The German luxury automaker’s 5 Series midsize premium conventional model posted strong gains for the brand this year—sales rose more than 75%, to 15,986 units vs. 9,111 sales a year ago. Also, the redesigned X3 compact premium crossover (CUV) bolstered the brand’s totals with 7,987 unit sales so far this year. Additionally, all of BMW’s CUV models posted gains this year, while the volume-leading 3 Series, which was the best-selling premium model in the US market, posted a 12% sales decline (26,590 unit sales vs. 30,360 unit sales in 2010).
Mercedes-Benz, with a lineup of 15 models in the US new-vehicle market, was very close to its rival BMW, selling just 32 fewer units through the first four months. Mercedes delivered 71,385 premium cars and light trucks in January through April 2011, up 7% from last year’s 66,857 unit deliveries. In addition to being the best-selling luxury brand, the Mercedes C-Class and E-Class passenger cars were among the 10 best-selling luxury models in the United States during this same time frame. The Sprinter van has sold 3,764 units in year-to-date sales, but is not included in the above figures as it is not considered to be a premium model. Continue reading ›
Posted on May 12, 2011, at 4:37 pm
Note: Last week, Saab Automobile AB, owned by Spyker Cars NV, had agreed to produce passenger vehicles in China with Hawtai Motor Group, but this week failed to win approval from China’s authorities. Hawtai will continue to talk about cooperation on a non-exclusive basis, according to media reports. Meanwhile, Reuters reports that China’s Great Wall Motor* is continuing to talk with Spyker Cars about a potential alliance with Saab. Our China expert, Tim Dunne, director of global coordination, offers historical background and fresh insight.
 Tim Dunne From a historical perspective, Sweden’s Saab Automobiles—once one of the world’s most iconic and quirky premium automotive brands—has been drifting somewhat aimlessly for most of the past 20 years.
In 1989, when global automakers could see a shift toward luxury cars emerging—and when new premium brands like Lexus and Infiniti were being launched—General Motors (GM) purchased a 50% stake in Saab for $500 million.
After the acquisition, GM proceeded almost immediately to lose money on the deal, as Saab sales steadily declined from their peak of 187,000 units in 1987. After multiple management shakeups and repeated unsuccessful attempts to find a place for Saab in GM’s global product strategy, the Swedish brand was left mostly to languish, and the financial bleeding at Saab continued for the balance of the decade. Then, for reasons that are not entirely clear, GM bought the remaining 50% share of Saab in 2000, allowing the Big Three domestic automaker to absorb all of Saab’s financial losses, instead of just half of them. Continue reading ›
Posted on October 13, 2010, at 6:22 am
Last year, Nissan Motor Co. announced that it was working on at least three new electric-vehicle models. Later this year, the Japanese automaker will begin selling its new Leaf electric car in the US. Nissan also recently announced that, as part of the company’s future electric-vehicle plans, its Infiniti premium division will launch its . . . Continue Reading Nissan Leaf Provides Basics for Future Nissan and Infiniti EVs
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Automakers in China are changing their way of thinking in a market that is diversifying. Foreign brands are starting a new campaign to expand capacity.Volkswagen Group is going to set up new plants in Ningbo and Xinjiang, while Nissan Motor Co. will add a Dalian plant for Infiniti. General Motors, Ford, PSA, Hyundai, Honda, BMW and Toyota Groups are all going to have new plants ready for vehicle production in 2012. As these companies’ performance in other markets is expected to be less than robust, the booming Chinese market is much more of a sure bet. Continue reading ›
