In most parts of the world, electric vehicles are treated as the second coming of Jesus. Meanwhile in Omaha, Warren Buffett is having doubts whether it was such a good idea to pay $230m for 10 percent of China’s cellphonebattery/car/EV/appliance/house builder BYD.
BYD’s share price has fallen by more than 40 percent over the past three months, China’s First Financial Daily remarks (via Gasgoo.) Can you guess the main reason for the serious drubbing? Read More >
As a Nissan rep pointed out via email last night, yesterday’s Chart Of The Day hardly tells the whole story of “the other Japanese brand.” Since 1995, Nissan has made up for declining “core model” sales by catching the tail end of the SUV/Truck craze with its Titan/Armada/XTerra/Murano combo. And, as this graph shows, those four models gave the brand a big spike for most of the last decade before diving unceremoniously towards oblivion (with the exception of Murano). Since then, Nissan seems to be targeting the niche left open by Honda: small, value-laden, efficient cars like the Rogue and Versa are Nissan’s new meal ticket (in addition to the still-soaring Altima). With a new Versa-based Juke mini-CUV launching this Summer, Nissan is poised to continue building on that image, but it still has to contend with remnants of its “Japanese Pontiac” and “Mainstream BOF-slinger” identities. Can Nissan be all of these things at the same time? Or will the Leaf EV halo push Nissan towards ever smaller, more efficient offerings and a neo-Honda emphasis on compact value? We’re hearing that changes are underway at the highest levels of Nissan’s leadership… coming up with a coherent brand vision and product plan for Nissan North America will have to be one of the new team’s top priorities.
Everybody is worried about China flooding the world with cheap cars. Just the opposite is true. The world is flooding China with expensive cars. China has become one of the prime export markets for major carmakers the world over, especially in the higher segments. For next year, a unit of the Chinese government predicts imports to China to exceed the 1 million mark. Exports remain lacklustre. Read More >
Whereas other Japanese carmakers struggle a bit in keeping up with the still quite hot Chinese market, Nissan finds itself way ahead. Nissan’s China sales rose 51.4 percent in the first half to 503,077 vehicles, says The Nikkei [sub]. Reason given: strong demand from middle-class buyers. The Chinese market as a whole rose some 30 percent in the first six months. Read More >
There seems to be no end for the good news for German (and assorted Asian) companies. Paulo Kakinoff, president of Audi do Brasil, declared to Brazilian car enthusiast site Webmotors that “logistics for importing motor vehicles is overburdened and factories abroad cannot serve all markets”. José Luiz Gandini, president of Kia do Brasil and Abeiva (Association of Car Importing Companies) said to said site: “It’s common for the customer to wait 60 days for a car.” Read More >
15 years ago, these six cars were Nissan. Sure, they sold a few Zs back in ’95 (4,176, actually), and the 240SX was in its last year of five-digit sales, but the Altima, Maxima, Sentra, Frontier, Quest and Pathfinder were the bread and butter. Needless to say, things change over 15 years, and though Nissan still sells all of these vehicles (excepting the Quest’s 2010 model-year hiatus), they’re no longer the reliable core they once were. Yes, the Altima sells like hotcakes, but Nissan’s other core nameplates are on steady steady glidepaths downwards, and the brand’s volume is largely being maintained by the introduction of new models. And as is so often the case in business, this shift away from core strengths is being rewarded by some thorough housecleaning. Having spent quite a bit of today talking with Nissan consultant Sharyn Bovat, yesterday’s rhetorical question What The Foxtrot Is Going On At Nissan is starting to come into sharper focus. Expect full reporting shortly, but in the mean time know this: things are changing at Nissan. My question now: does this chart help explain why?
What’s that? We still haven’t plumbed the depths of our bag-o-automotive-sales-data thoroughly enough to have published annual sales for the Toyota Prius? Well, here it is, my truth-starved friends: ten years of Prius sales, culminating in two consecutive years of falling sales. And granted, most nameplates are down over the last two years because the market has been down for a solid two years now. Also, if you think the downturn is due to gas prices, you’ve got a surprise waiting for you after the jump. So has the Prius lost its luster? Could the most culturally significant passenger car of the last ten years be running out of steam (or whatever it runs on), or is this just a natural drop in demand in line with a weak market?
Those who have an ideological beef with China should keep one thing in mind: Without China, the car industry (to name just one segment) would be dead. China’s unbridled appetite for cars keeps the whole industry humming. Two examples: Read More >
Japanese car makers castworried glances at the thinning calendar: On September 30, Japan will discontinue their subsidies for environmentally friendly cars. That program had provided Japan with China-sized double-digit growth rates. All things must pass, and Japanese automakers are getting ready for a German sized Abwrackprämien-aftershock: Everybody is expecting a run on dealer lots through September and then: Bang. Other than in Germany, where people who never bought new traded in the jalopies for a cheap new car, in Japan there is a huge pull-forward effect. Automakers are preparing for the worst. Read More >
The ACEA has released their European new car statistics for the month of June. One look at the picture tells you what is happening: With the cash for clunkers effects slowly working their way out of the system, Europe is settling into a new normal. In June, the market was down 6.9 percent, but for the first six months, with 7,285,487 new cars registered, the market in the EU27 is pretty much what it was in the same period last year. Compared with the first six months of 2008, the market decreased by 10.3 percent, but those were the good old pre-carmageddon days. Read More >
Edmunds has released its “true cost of incentive” index for June [via BusinessWire], and once again, GM took the top spot, followed by Chrysler and Ford. Detroit accounted for 61.3 percent of all incentive spending last month, with Trucks and Premium Sportscars attracting the highest incentives.Says Edmunds’ Michelle Krebs:
Last June incentives were sky-high, but sales were depressed, as buyers waited for details on the Cash for Clunkers program. If the industry was truly recovering, we would be blowing last June’s car sales numbers out of the water
Third quarter North American auto production is headed for the 11.8m mark, even as analysts at IHS Automotive revise their sales projections downwards to 11.5m, once again raising the specter of oversupply which haunted Detroit for much of the last decade. GM, which is forgoing a Summer plant shutdown this year, is expected to increase its Q3 production by 32 percent over last year, as its market estimate ranges from 11.5 to 12m units according to Automotive News [sub]. Though that’s on the high end compared to the IHS number, and though GM’s market share has been anything but stable, the firm is keeping a steady hand on the tiller to maintain a sense of normalcy headed into its forthcoming IPO. And with inventories in far better shape than they’ve been in years, automakers reckon they can always get rid of extra cars when the market rebounds next year. In the meantime, however, the risks of overproduction are very real.
The best-selling nameplates in America may still be pickup trucks, but for the first time in nearly a decade, cars and car-based crossovers are outselling the body-on-frame competition. The shift occurred in the second half of 2007, as gas prices built to their Summer 2008 peak, and despite more reasonable energy prices, consumers do not appear to be going back to large trucks and SUVs en masse. And, as Automotive News [sub] reports, the downsizing of America’s buying tastes is doing more than just putting a fork in the SUV fad.
Recent Comments