Munich HQ has huge expectations for the third-generation BMW X3. The X3, after all, was the vehicle that ignited the compact luxury SUV craze, the vehicle that spawned competitors such as the Audi Q5, Acura RDX, Mercedes-Benz GLK/GLC, Volvo XC60, Lexus NX, and Porsche Macan. Surely the X3 has the power, the might, the capacity for sales domination, right?

“We created that segment,” BMW CEO Harald Krueger said in July. “The No. 1 approach and target I clearly have is, there shouldn’t be anyone besides us who is No. 1.”

“If somebody on my team is not performing to that, well, he has a problem,” Krueger says, making clear to BMW USA’s Bernhard Kuhnt that greater global production of the X3 will mean greater allocation, which had better mean greater U.S. sales.

BMW will not, however, seek to achieve the lofty sales goals by introducing the 2018 X3 with a price that undercuts its key rivals. (Read More…)

Ever more minor midsize players continued to see their share of America’s midsize sedan segment dwindle in September 2017. The cause: domination on the part of America’s two major midsize cars.

The all-new 2018 Toyota Camry enjoyed its first full month of meaningful availability in September and produced a 13-percent year-over-year U.S. sales improvement as a result. Meanwhile, Honda is clearing out remaining 2017 Accords in advance of the all-new 2018 Accord’s arrival this fall. Honda’s efforts produced a 10-percent uptick compared with September 2016.

Yet despite the big gains from the two major players, the upper class, the midsize segment still declined 7 percent in September because of sharp declines by many members of the middle class.

That means Camry and Accord market share continues to rise. That means the slice of the market earned by the middle class continues to shrink. (Read More…)

Rarely does one hear an automaker point out that the next generation of a popular product is headed downmarket.

Even when a vehicle is repositioned in a lower end of the market, “downmarket” is the last word you’re going to hear out of an auto executive’s mouth. Instead, automakers up the value quotient, cater to the demands of discerning buyers, or find new production efficiencies we can pass on to the customer.

More often, automakers tout their new product as a move upmarket. So it is with Ford Motor Company’s fourth-generation Focus, according to Jim Farley, formerly of Ford of Europe and current head of Ford global markets. “It goes upmarket in exactly the same way as the new Fiesta,” Farley says.

Also like the new Fiesta, the 2019 Ford Focus will spawn an Active variant. Subaru Crosstrek here we come? (Read More…)

In September 2017, Subaru reported the company’s 70th consecutive year-over-year U.S. sales increase. That’s nearly six complete years of steadily improving U.S. sales volume.

Think of it this way: 2013 was a huge year for Subaru of America as sales had risen 59 percent over the span of just two years. But in 2013, Subaru sold 424,683 over the course of the entire calendar year. In 2017, that’s a total Subaru blasted past in the first week of September.

But have you ever stopped to notice that Subaru is accomplishing much of its success with three remarkably similar variations of the same theme? Crosstrek, Forester, Outback. A bit of extra length there, a touch of extra height here, a smidgen of savings there, a dose of extra equipment here. This is hardly the historically obvious 3 Series to 5 Series to 7 Series lineup. The Crosstrek, Forester, and Outback are conceptually similar vehicles with overlapping price spectrums. And recently, with a huge leap in Crosstrek popularity, they’re all similarly popular, too.

You almost get the sense Subaru could squeeze an Outback “four-door coupe” in there and sell 12,000 of those each month, too. (Read More…)

Priced at $42,995 including destination fees, the late-arriving 2018 Chevrolet Traverse RS is an oddly positioned member of the second-generation Traverse lineup.

The RS is the only four-cylinder member of the fleet — it’s down 53 horsepower on the 3.6-liter V6 in other Traverses — and yet a basic Traverse RS costs $12,120 more than the least costly Traverse.  The RS consumes more fuel on the highway, albeit slightly less in the city. It’s also available exclusively as a front-wheel-drive model.

Ah, but GM says it’s “sporty.” (Read More…)

In many ways, September 2017’s auto sales bucked the trend. After the industry combined for decreased volume, year-over-year, in each of 2017’s first eight months, auto sales in September rose 6 percent. Meanwhile, the shrinking car sector that tumbled 12 percent through the first two-thirds of 2017 was down only 3 percent in September.

There were two big reason the passenger car decline wasn’t worse: America’s two best-selling cars.

Excluding the Honda Civic and Toyota Camry, U.S. car sales fell 6 percent. But as the clear-out of remaining 2017 Honda Accords got underway and produced 10-percent growth, the launch of the 2018 Toyota Camry generated a 13-percent uptick. Meanwhile, the Honda Civic’s 26-percent surge allowed the compact Honda to expand its lead over the midsize Camry in the race to end 2017 as America’s best-selling car. (Read More…)

September 2017 sales at Fiat Chrysler Automobiles decreased on a year-over-year basis for a 14th consecutive month, extending a stretch of declines that began in August of last year.

For much of that time span, the U.S. automobile industry was reporting declining sales, as well. And for much of that time span, even as total U.S. auto sales kept on sliding, SUV/crossover sales were rising. For much of that time span, Jeep sales were falling.

Technically, officially, Jeep sales kept on falling in September 2017, the U.S. auto industry’s first month of improved sales this year.

But if you’d just ignore the Jeep Patriot for a moment, we can look at a clearer picture. (Read More…)

In September, for the first time in 2017, auto sales were higher this year than last.

Substantially higher.

Compared with September 2016, auto sales in America last month were 6 percent higher, far healthier than the modest sub-1-percent uptick analysts predicted. Booming pickup truck volume, big gains from America’s best-selling SUVs and cars, continued growth from trend-bucking Subaru, and rebounds at Volkswagen resulted in an industry that reported 1.5 million total sales, nearly 90,000 more than in September 2016.

The seasonally adjusted annualized rate shot up to 18.6 million, the best SAAR since July 2005, according to Automotive News. Over the last half-decade, Americans have averaged fewer than 1.3 million September new vehicle acquisitions. Last month’s result was 18 percent better than the September average.

Sunshine and roses? An end to the U.S. auto industry’s gradual slide? A sign of a perfectly healthy market? We have four reasons you should be skeptical. (Read More…)

Subaru reported in September 2017 the brand’s 70th consecutive month of year-over-year growth. The growth rate is not modest. Five years ago, Subaru had never reported more than 336,000 U.S. sales in a calendar year. Yet with one-fourth of 2017 remaining, Subaru has already reported 478,848 U.S. sales in 2017 and is on track to sell more than 650,000 vehicles by the end of the year.

Subaru is not, however, without challenges. The rate of sales improvement has not been matched by a commensurate improvement in the dealer network’s ability to service vehicles, for example.

Another issue? Subaru needs to create space for production of its next new vehicle, the three-row Ascent SUV, in Lafayette, Indiana. Subaru already builds its best seller, the Outback, in Indiana, and with the latest generation of the Impreza, the brand’s compact car joined the midsize Legacy as an Indiana-built model, as well.

For the Ascent, which Subaru confirmed is set to begin rolling out of the Indiana plant in the second-quarter of 2018, Subaru has received the necessary permits to increase production by 66 percent compared with the original joint Toyota/Subaru facility.  (Read More…)

U.S. auto sales exceeded analyst expectations with a big 6 percent year-over-year increase to 1.5 million units in September 2017, the first monthly improvement in 2017 so far.

After auto sales fell 3 percent during the first two-thirds of 2017, big September increases from Toyota Motor Corp., General Motors, Ford Motor Company, American Honda, Nissan’s trio of brands, and numerous smaller outfits brought the sales pace achieved through the first three-quarters of 2017 within sight of 2016’s record rate. By the end of September, U.S. auto sales are down by less than 2 percent compared with last year.

Pickup trucks played a major role in September’s improvements, growing at twice the rate of the industry at large. The Honda Civic expanded its lead as America’s best-selling car on a quest to end the Toyota Camry’s 15-year run. Minivan sales plunged to barely more than 33,000 units. The Toyota RAV4 topped 42,000 sales for a second consecutive month, leading a booming SUV/crossover class. (Read More…)

September 2017 sales of pickup trucks rose to the highest level so far this year in the United States, jumping 12 percent to 257,864 units.

Prior to this point, truck sales had grown by less than 4 percent, year-over-year, averaging slightly more than 225,000 monthly units.

September’s big gain was fuelled almost entirely by improvements among the full-size pickup trucks that own 84 percent of America’s pickup truck market. And America’s full-size pickup truck gains were powered in large part by America’s best-selling line of vehicles: the Ford F-Series. (Read More…)

Hyundai’s Genesis Motors offshoot intends to finalize its transition into an entirely separate U.S. dealer network within the next three years.

The process of building an undetermined number of distinct Genesis outlets has not yet begun, but it’s clear the brand is well aware of the limitations with which it’s currently operating.

“The reality is, many, many luxury customers tell us they love our products, they’re amazing, but I’m not going into a Hyundai store to buy it,” U.S. Genesis boss Erwin Raphael tells Automotive News.

No kidding. (Read More…)

Every Sunday or Monday, a very generous man appears in my driveway with a new car. The same man, in not as generous a fashion, also removes a car from my driveway. The most recent exchange involved the arrival of a fourth-generation 2018 Kia Rio and the departure of the 2018 Mercedes-Benz E400 4Matic Coupe we reviewed last week.

“Chilly one today, eh?” I say.

“I’m preparing myself for some cold days in PEI this winter,” Mr. Sowerby says with a chuckle. We chat for a moment about a recent Chevrolet Traverse event that was slathered across my Twitter feed, and as Garry gets into the Mercedes-Benz to depart he says, “You’re getting a Mazda CX-3 with a six-speed stick next week.”

Huh? It can’t be. Seriously?

For real. (Read More…)

From a historical midsize perspective, the all-new 2018 Honda Accord is rather thrifty with the Earth’s decreasing supply of oil.

It’s fuel efficient, in other words. Over the span of 10,000 highway miles, the basic 2018 Honda Accord is expected to consume 263 gallons of regular octane gasoline. That’s only 13 more gallons than you’ll consume in a 2018 Honda Civic Hatchback with the same 1.5-liter turbocharged four-cylinder. It’s 15 fewer gallons than you’d have used in the most efficient non-hybrid 2017 Honda Accord.

The city improvement is more meaningful. The 2017 Honda Accord four-cylinder topped out at 27 mpg in the city, equal to $944 for 10,000 miles at the current fuel price of $2.55/gallon. The new 30-mpg Accord reduces city consumption in the same scenario to $850, a 10-percent decrease.

The 2018 Honda Accord is not, however, the most fuel-efficient car in America’s midsize sedan category. Honda thought it would be. Honda was wrong. (Read More…)

What does an automaker do after the company’s three-year-old midsize sedan — the only midsize sedan with standard all-wheel drive — is slightly upgraded for 2018?

It initiates a new marketing campaign. And what must that marketing campaign entail when the car is chronically unpopular and suffering from sharp sales declines in a shrinking category? It must utilize a catchy, attention-grabbing slogan.

Thus, for 2018, Subaru gives us the rebirth of a tagline: sport utility sedan.

Only this time, unlike 1998, the Legacy SUS isn’t lifted, it doesn’t wear two-tone cladding, its tires’ lettering won’t be emboldened by white font. The 2018 Subaru Legacy Sport Utility Sedan is just a Legacy. (Read More…)