China has finally revealed its worst kept secret and announced a pilot program for five Chinese cities. It’s raining cash for buyers of electric vehicles and plug-in hybrids. And it “reflects Beijing’s resolve to foster domestic brands,” says Reuters.
Really? At first glance, there is no discrimination against laowei cars. Read More >
The only “real car” on Forbes’ most overpriced list is the Chrysler 300. Really. Despite being based on the compact Cobalt, Chevy breaks sales of its HHR out as a “truck,” in search of improved CAFE performance. And despite an MSRP of under $20k, the PT Cruiser-inspired wagon was still one of Forbes’ most overpriced vehicles of 2010. The rest of the list’s 11 models are unquestionably trucks, or truck-based utes, and save for Nissan’s Titan and Armada, they’re also all from Detroit automakers as well. If you’re looking for more reasons to build a cheap, utilitarian compact pickup truck (ahem, General Motors) this list has got ’em. Hit the jump for Forbes’ list of most overpriced vehicles, and the magazine’s formula for deciding who makes the cut for this dubious distinction.
Ford Europe will swallow a tried and trued antidote against flagging car sales: Heavy discounting. Yesterday, Ford had announced – in a rather roundabout way – that their European sales had dropped a breathtaking 17 percent in April. Putting cash on the hood is no surprising move. Wouldn’t there be another detail. Read More >
To say that Chrysler’s 25 percent year-over-year sales increase last month came as a surprise would be pushing the boundaries of overstatement. Chrysler’s sales and market share have been in decline for a long time, but over the past several years, the tailspin seemed to have become terminal. So, how did the Pentastar (barely) make its 95k minimum volume level and increase sales by 25 percent over April 2009? Fleet sales, for one thing: according to The Freep, TrueCar.com estimates that a full 40 percent of Chrysler’s April sales went to fleet customers.No wonder made a big deal about publicly finding Jesus on the fleet sales issue… at the end of the month (to say nothing of the conspicuous absence of retail sales numbers in its April report and massive increase in Sebring sales). And the bad news doesn’t end there. Not only did Chrysler top all automakers in per-vehicle incentives last month according to Edmunds’ monthly True Cost Of Incentives index with $3,374 on the average Mopar’s hood, they’re actually increasing incentives even further.
Back in October, GM’s then-CEO Fritz Henderson announced that GM would make a stand on market share, refusing to allow its share of the US market to slip below 29 percent. Oh wait, that was Gary Cowger’s campaign of 2003, which saw GM execs wearing symbolic “29” lapel pins. Where Henderson actually drew GM’s market share line in the sand six months ago was
At this point about 19 percent… We’ll finalize that, but I’m not interested in going down from that
And according to the Detroit Free Press, GM actually achieved that goal in December, logging a 21 percent share based on Autodata findings. Unfortunately, things have been slip-sliding ever since. In February, GM’s share fell to 18.1 percent, and last month it fell even further, to 17.6 percent.
Ever since a debt crisis toppled the already-precarious auto sector into undeniable crisis there’s been a running debate about when US car sales would “return to normal.” By now though, even the most ardent bulls seem to have accepted that 2007’s 16m number will be out of reach for at least several more years. So, how will we know when we’ve hit the new normal? According to Edmunds, at least one statistic roared back to 2006 levels last month: the percentage of sales financed at zero percent.
In March, more than 22 percent of financed new cars were purchased with zero-percent finance deals. Last March the total was just 13 percent. The prior high was 21 percent in July 2006.
Japan’s domestic car trade can look back at the first up year in seven years. Japan goes by the fiscal year, which spans from April 1 in the current year to March 31 in the next. In the 2009 fiscal, domestic sales of new vehicles rose 10 percent on the year. You think that’s an occasion to head down to your favorite Ginza hostess bar, break out the sake, or stronger stuff, and party like it’s 2003? Chigaimasu. Quite the opposite is true. The land of the rising sun is worried about falling sales. “A strong sense of anxiety continues to grip the industry,” reports The Nikkei [sub]. Read More >
China’s carmakers better get their pure plug-ins ready. The central government is set to spend serious money to electrify development and sales. China Daily reports that “a much-awaited government stimulus plan” is ready for government approval and should be in effect in the next couple of months.
Private buyers in five chosen cities (so far unveiled, but the usual suspects apply) will be able to collect close to $9000 if they buy a pure plug-in. Imports need not apply. Read More >
Have you been secretly lusting for a Hummer? Here is your last chance. GM is definitely shutting Hummer down. The remaining inventory of 2,200 Hummers will go on a big fire sale. Read More >
We no longer have the dubious honor of leading this category. We’ve been down that road before, and we know it’s a dead end.
Edmunds [via Earth Times] has released its monthly “True Cost of Incentives” list, and GM tops the list, followed closely by Chrysler and Ford. Good thing Sergio Marchionne narrowly avoided “getting pulled into an incentive war.” That Chrysler’s sales couldn’t beat last March’s numbers even with these incentives tells you everything you need to know about the state of play in Auburn Hills. Oh, and how is GM’s incentive “leadership” supposed to jive with marketing boss Susan Docherty’s insistence [via the WSJ [sub]] that GM is reigning in its incentives? Who knows. Meanwhile, Ford’s impressive 2010 numbers have to be taken with a grain of salt in light of the Blue Oval’s continuing dependence on spiffs and fleet sales (speaking of which, fleet numbers are up 64 percent at GM, and Ford had a 30 percent-ish fleet mix in March[ via FT]). In fact, Toyota’s much-vaunted move towards incentives seems to not only have helped its sales, it may have also scared Detroit back into some nasty old habits.
Money-wise, the United States is in a bit of a tough spot. Must create revenue wherever it can. From red light cameras to shaking down foreign companies. On Tuesday, Germany’s Daimler AG was charged with violating U.S. bribery laws “by showering foreign officials with millions of dollars and gifts of luxury cars to win business deals,” as Reuters has it. After asking “how much will it take for this to go away?” Daimler plans to pay $185m to settle charges by the U.S. Justice Department and Securities and Exchange Commission. Read More >
Peter Schiff (the man who saw the financial meltdown coming from a mile away) continually asserts that financial stimulus isn’t cure, it prolongs or postpones the problem. Any hardcore free capitalist will find it hard to disagree with Mr Schiff. There is no governmental stimulus such as in Europe. There is plenty of stimulus from the car makers.
March sales for the United States are forecast to explode according to ecreditdaily. They report that JD Power & Associates forecast that new vehicle retail sales going to increase 25 percent. New vehicle sales for the month of March 2010 are expected to be around 883,300 units. The majority of the growth is expected to come from a certain manufacturer who’s been in the media for other reasons. Our own Darth Niedermeyer, saw this coming. Read More >
Lavish cash on the hood of Japanese cars may help their U.S. sales (or soften the fall in Toyota’s case). The largess also “will put pressure on earnings,” says The Nikkei [sub].
Toyota, Nissan, Honda raised sales incentives in February to an average of 2,221 dollars per vehicle, up 11 percent from January. Read More >
If there are two words that can’t be left out of any discussion of 2010 auto sales numbers, they are “incentives” and “fleet.” With a fleet sales binge well underway, and Toyota recall-triggered incentive wars raging with no end in sight, the spring Truck month rituals have been bounteous. And with sales of full-sized trucks through February trending flat and fragmented, they had to be. But will they make a difference?
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