J.D. Power Expert Profiles U.S. Auto Market Sales Trends

 J.D. Power’s Deirdre Borrego, vice president, U.S. Client Services, spoke to industry participants at the October J.D. Power Automotive Marketing Roundtable in Las Vegas, NV. about the U.S. auto market’s recovery and the fundamentals in the market that are driving strong demand.

Highlights from her talk include analysis from the Power Information Network® (PIN) and J.D. Power’s strategic partner LMC Automotive:

• Retail sales to individual consumers in 2013 are expected to reach 12.8 million units which is back to pre-recession levels.

• The real story isn’t just about sales growth. It’s also about transaction price growth. We’ve seen exceptional performance with prices (consumer facing prices net incentives) increasing by about $3,000. Continue reading ›

Small- and Large-Vehicle Segments Poised for Stronger Growth in 2013

Most of the 27 light-vehicle segments in the U.S. auto market achieved year-to-date sales gains through the first three quarters of 2013, according to analysis from J.D. Power and its strategic partner LMC Automotive. Large pickups advanced the most in the first three quarters—sales climbed 19.95% from last year’s same period. Compact crossovers (CUVs) . . . Continue Reading Small- and Large-Vehicle Segments Poised for Stronger Growth in 2013

J.D. Power’s King Discusses U.S. Auto Market Shifts at Joint Conference

Thomas King Speaking at S&P ConferenceJ.D. Power’s Thomas King, senior director, Power Information Network® (PIN), recently shared insights on changes in new-vehicle demand in the U.S. market at the Standard & Poor’s/J.D. Power Auto Industry Hot Topics Conference in New York.

Analysts from S&P, J.D. Power, and strategic partner LMC Automotive, presented their views and analysis of the current and future state of the U.S. and global auto industry to an audience of more than 160 Wall Street analysts and reporters. Continue reading ›

U.S. Auto Market Reaps Double-Digit Gain in June; Best Monthly Pace Since 2007

Car buyer gets keys from DealerAutomakers in the U.S. market finished the month of June with new-vehicle total sales increasing 13.5% (on a selling-day adjusted basis*) to 1.40 million units from 1.28 million units in the same month in 2012, according to analysis from J.D. Power’s Power Information Network® (PIN) and our strategic partner LMC Automotive. The selling pace in June was the strongest in six years and outperformed most forecasts.

Through the first six months of 2013, total new-vehicle deliveries also increased, but not by as much as the June figure; YTD sales were up 8.4%, to 7.82 million unit sales from 7.26 million in the same six-month period a year ago. Trucks outperformed cars in the first half and gained 1.80 percentage points of share from a year ago. The Detroit-based automakers also captured a larger share of the U.S. auto market in the first half—46.1% vs. 45.2% in 2012.

In June, the seasonally adjusted annual selling rate (SAAR) for retail and fleet sales averaged 15.9 million units—the strongest rate since 2007. The year-ago total light-vehicle SAAR was a much weaker 14.4 million units. Continue reading ›

Demand for Smaller Engines in U.S. Market Flourishes

tysonjominy Blog

Tyson Jominy

During the past five years, there has been a rise in demand in the U.S. market for compact- and even midsize-segment car and light-truck models to be equipped with more efficient, powerful and eco-friendly 4-cylinder engines. In fact, more than one-half of new vehicles purchased or leased in the first five and one-half months of 2013 were equipped with a 4-cylinder, according to data provided by our Power Information Network® (PIN) division.

One reason behind the larger percentage of smaller engines (PIN defines small engines as 3-, 4- and 5-cylinders) in the sales mix is that more brands in the U.S. market now offer these more fuel-efficient powertrains than they did five years ago. Some of the noticeable changes in powertrain penetration that PIN has tracked between 2008 and 2013 are summarized:

• In 2008, 10 nameplates in the U.S. market did not even have engine options smaller than 6-cylinders. Today, there are only three brands without small (below 6-cylinders) engines in their sales mix.

• In 2008, there were only five nameplates with over 90% small-engine penetration. Today, there are 11 brands with greater than 90% penetration.

• Four nameplates have 100% small-engine penetration—Mini, smart, Fiat, and Scion. Volkswagen, Subaru, Hyundai and Kia also score well above 90% small-engine penetration.

• The largest change is for the Buick brand, which did not offer 4-cylinders in 2008, but now is above 50% in its sales mix.

Audi remains the top luxury marque with 4-cylinder penetration, while BMW, which did not offer 4-cylinders in 2008, is now No. 2. Continue reading ›

Porsche Earns Highest IQS Ranking; GMC and Chevrolet Make Top Five

Porsche, the luxury brand that is part of Germany’s Volkswagen Group, ranks highest in initial quality among all nameplates included in the J.D. Power 2013 Initial Quality Study. This year, the German premium sporty brand averages 80 problems per 100 vehicles (PP100).

Following Porsche in the initial quality rankings this year is GMC, the . . . Continue Reading Porsche Earns Highest IQS Ranking; GMC and Chevrolet Make Top Five

Automakers Ready to Turn Attention to the Future after Strong Finish in 2012

 

Tim Dunne

Tim Dunne

J.D. Power Asia expert Tim Dunne provides a perspective for members of the auto industry, especially automakers in Japan, on the U.S. market and offers a glimpse at issues and concerns and changes that are likely to impact the world’s manufacturers in the future. Excerpts from an article published recently in Japan’s Automotive Daily Nikkan Jidosha Shimbun are featured in this post.

As 2012 draws to a close, light-vehicle sales in the United States are expected to finish the year strongly. Vehicle manufacturers estimate total sales will top 14.4 million units for the year, which translates to a healthy 14% increase vs. 2011’s total of 12.7 million units. The 14.4 million-unit total would be the highest annual sales in the United States since the industry reached 16.1 million units in 2007, and represents nearly a 40% increase over 2008, when industry sales tumbled to an anemic 10.4 million units at the lowest point of the recent “Great Recession” (December 2007–June 2009, according to the National Bureau of Economic Research).

For many Japanese brands operating in the United States, 2012’s final results will be even better than the industry average. Sales of Toyota Group vehicles (Toyota, Lexus and Scion brands) are currently up a combined 29%, and are on track to reach 2.05 million vehicles for the year; Honda Group sales (Honda and Acura brands) are currently up 24%, and are expected to top 1.4 million units for the year; Subaru sales are up 29%, and are expected to top 330,000 units for the year. Continue reading ›

Suzuki Leaves U.S. Auto Market; Focuses on Asian Markets

After 27 years in the United States, Japan’s Suzuki Motor Corp. will stop selling its current lineup of four models here and concentrate on other parts of its global business, particularly business in India and Southeast Asia. The company, which is a major mini car maker in Japan, will continue to market motorcycles, all-terrain vehicles and marine engines in the United States, according to a company statement.

Recently, Suzuki’s U.S. distributor filed for Chapter 11 bankruptcy protection in California. Declining sales, a small, aging product lineup, and the strength of the yen were listed as reasons for the Japanese automaker’s decision to exit this market. Separately, Suzuki has stated that it will continue to sell vehicles in Canada, where it once operated a joint venture production plant with General Motors.

In regard to dwindling sales in this market, Suzuki, with a lineup of four models in the U.S. market, sold only 21,172 units through the first 10 months of 2012, which was 5% fewer than last year. Sales have been sliding during the past few years. In fact, Suzuki had its best sales year in the United States five years ago when it sold 102,000 vehicles. Since the company still has 220 U.S. car dealerships, it plans to work out an agreement with dealers to continue to serve current Suzuki vehicle owners with parts and service. All warranties will be honored, according to a company statement.

Suzuki to Focus On Stronger Asian markets

The Japanese automaker may be leaving the U.S. auto market, but plans to bolster its business in other parts of the world—especially in the growth markets of India and Southeast Asia. Currently, Suzuki has a 3% share of global auto sales—the same as in 2011, according to analysis from our strategic partner LMC Automotive.

Region 2011 2012
Global 3.0% 3.0%
Japan 13.4% 12.3%
India 33.8% 33.5%
ASEAN 3.2% 3.7%

 Source: LMC Automotive

Its Maruti Suzuki India unit is a market leader in that country, and deliveries accounted for nearly 40% of the company’s total 2.49 million unit sales in its last fiscal year. This year, Suzuki’s market share in India—though still the largest—is 33.5%, down slightly from 33.8% a year ago. Continue reading ›

Easier Credit Primes July U.S. Double-Digit Retail Sales Rise

John Humphrey

Retail sales in the U.S. auto market got off to a fast start in July. While they’ve slowed as the month has progressed, retail sales in the first 16 selling days are still up 15.1% from a year ago, and July could post the second-strongest retail sales growth rate for the year, according to a monthly sales update developed by J.D. Power’s Power Information Network® (PIN) and LMC Automotive.* Fleet sales are expected to be slightly lower than in other months of the year.

Total light-vehicle sales (retail and fleet) remain stable, with volume in July expected to reach 1.168 million units, which is 20% higher than a year ago on a selling-day-adjusted basis.** That translates to a 14.1 million-unit seasonally adjusted selling rate (SAAR), which matches last month’s SAAR and is significantly stronger than the 12.2 million unit pace in July 2011. Typically, July is a slower month for fleet deliveries, which so far account for 17% of the mix, but is still stronger than the historical July average fleet percentage of 15%. Continue reading ›

Corporate, Brand, Model-Level Performance: U.S. Auto News in the First Half

Most domestic, European and Asian-based automakers improved their car and light-truck sales in the U.S. auto market during the first six months of 2012 in comparison to the same period in 2011. A few highlights about the market during  the first half of 2012 are summarized below:

• Among the three Detroit-based automakers, Fiat-Chrysler boasted the best share gain, as market share increased by 1.36 percentage points to 11.49% from 10.13% a year ago.

• General Motors Company was still the largest automaker in the U.S. market, although its share of industry sales fell by 1.84 points to 18.13% from last year’s mid-year industry share of just under 20%.

• Detroit-based Ford Motor Co. also lost more than a point of market share this year—its first-half share was 15.55% vs. 16.76% a year ago. However, Ford’s corporate share was slightly higher than Toyota Group’s share.

• Toyota’s three brands gained more than 1.5 points of share to end the first half with 14.41% of industry sales. Toyota’s sales and share gain is based on their recovery from last year’s disastrous challenges with the March 2011 Japanese earthquake and tsunami and Thailand flooding issues that limited supply through much of the year, according to Dave Cutting, senior manager of North American Forecasting for LMC Automotive.**

• Transplants and imports both gained sales in the first six months of 2012 vs. the same period in 2011. Continue reading ›