Category: Sales

By on March 3, 2008

10511036255001030.jpgI had to check the calendar to see if it was April first, but no; Mexico has banned the importation of all American used cars except for vehicles built in 1998. No really. As of today, our NAFTA neighbor to the South has forbidden importation of all American pre-loved cars, trucks, pickup trucks, minivans and SUVs built before '98, and all those built thereafter. Until now, there was a five year window, from '93 to '98. As The Detroit News reports, authorities responsible make no bones about the fact that the rule change was spurred by declining car dealers' profits rather than consumer interest. "The Mexican Consulate in McAllen said the change was made 'to restrict the entry of vehicles that compete with the Mexican car industry.'" Needless to say, the rule change has inflated the price of '98's and eaten into the price of anything older– or younger. "With the sudden change in demand, such 1998 models are appreciating for the first time since they rolled off the lot, their prices rising by $500 to $800." Locura.

By on March 3, 2008

sage_vaughn_xb_02-copy.jpgTTAC reviewer Paul Niedermeyer slated the new, heavier, less fuel efficient, gansta-riffic xB as "a blot on Toyota’s relatively unblemished copybook." The other models aren't setting the world on fire and face new competition, from within and without ToMoCo. No wonder, then, Automotive News [AN, sub] reports that Scion sales have dropped for 16 straight months. "Since August, monthly sales have declined from each previous month, even though dealers have had two redesigned models in their showrooms during that period." Product isn't the only problem. Taking a cue from The Big 2.8, Scion has over-dealered. "Scion had 856 dealers as of Jan 1, 2005. But as sales soared in 2005 and 2006, more dealers piled on, even if they weren't in hip, urban neighborhoods. Currently, 963 of 1,224 Toyota dealers carry the brand." ToMoCo says they mishandled the old to new model changeover. And never mind, anyway. "Sure, we'd like to see more customers," ToMoCo prez Lentz admits. "but we're still seeing the right customers. The tC's average customer is under 25 years old. The overall Scion customer is in his early 30s, and primarily he is new to the brand… As we hit spring, I think we'll see some good sales results." Even at Toyota, hopes springs eternal.

By on February 27, 2008

limbo_dancer148-48.jpgWith three selling days left in the year's shortest month, Ford Sales Analyst George Pipas is preparing the financial community (and the Ford family) for the worst: "The retail business is not that strong." You got that right. Pipas is predicting a ten percent drop in Ford sales relative to last Feb. That said, Pipas boasted that Ford will "hold our own" on retail sales relative to the rest of the industry. According to Automotive News [sub], Ford did so last month. FoMoCo sales "only" tumbled 3.9 percent, compared to the overall industry average of -4.1 percent. Excuse us for not believing Detroit's official retail sales numbers these days, what with reports filtering-in of increased fleet sales to government agencies and other commercial organizations. But we're good with Pipas' invitation to consensus: "I think we can all agree: '08 is getting off to a pretty low start."

By on February 27, 2008

17_lf_a_roadster.jpgHoly emerging markets! According to Japan's Nikkei business daily [via Reuters], Toyota's luxury division is boosting production by 35 percent to cater to strong demand in Russia, China and other nascent automotive markets. No question: the brand's on a roll. Last year, ToMoCo sold 518,300 Lexi, a nine percent gain over 2006 totals. Lexus now accounts for roughly six percent of Toyota's total sales. As we reported previously, Toyota plans to expand production generally by 8.4 percent– despite the U.S. downturn and any ripple effect it may have on the global economy. According to Nikkei, that's just a start (continuation?). "Toyota has set an internal goal of producing 11.3 million vehicles globally in 2012, excluding its units Daihatsu Motor Co and Hino Motors Ltd. That would represent a rise of more than 30 percent from 2007." Toyota denied the report. 

By on February 26, 2008

trafficb.jpgIn 2005, Mexican President Vincente Fox accelerated the opening of Mexico's markets to American used cars, allowing the free importation of American vehicles between 10 and 15 years old. In the last two-and-a-half years, an estimated three million used American cars answering to that description have found their way into Mexico. As the San Francisco Chronicle reports, the business of importing American junkers has been good to the 25k families who earn their living in the trade, but not everyone is muy alegre. Mexico's new car dealers are feeling the pinch; sales have stagnated at 1.1m per year. Sales of subcompacts have dropped over 16 percent, as Mexicans opts for cheaper, more spacious American metal. And when the Mexican car industry sneezes, American manufacturers catch a cold. GM, Ford and Chrysler are all top sellers in Mexico. They stand to lose big as the wave of American jalopies continues to take the air out of the Mexican new car market.

By on February 26, 2008

corolla.jpgBacking-up the basic thoery behind Andrew Dederer's TTAC editorial on Chinese automotive exports, Toyota is countering a drop in domestic sales by aggressively expanding exports. The JCN Network reports that while ToMoCo's home market sales fell 4.4 pct (to 108,787 units), they ramped-up exports by 9.1 pct (to 208,156 units). Globally, the world's largest automaker increased production in January by 8.4 percent (compared to '07), cranking-out 719,646 units. If you add in sales of ToMoCo subsidies (NOT minority partnerships like some automakers we could name), January's total rises to 801,873 units.

By on February 22, 2008

saturn3dspacetour1.jpgAccording to Automotive News [sub], Saturn's looking for a “slight” increase in ’08 sales. Speaking at its dealers party like it's 1999 confab in the City by the Bay, execs predicted the uptick will come from the Aura, Opel Astra and the Outlook. Just in case those cars don't fly off the lots, Saturn execs will put “conquest incentive cash” on the Astra’s hood (for non-Saturn trade-ins). Maybe. In certain markets. Later this year, Saturn will launch the Two Mode hybrid Vue. Beyond that… Saturn suits told dealers that GM expects its growth over the next five years to come from its Rethink division, helped along by a shift away from trucks. John Pitre, the GM of Motor City Auto Center in Bakersfield, CA is stoked. He says his average Saturn transaction prices have gone from $17k in ’06, to $21.5k in ’07. "Our Saturn store remodel will be done in July, so that's a sign that we're very bullish on the brand." Meanwhile, the bears are waking-up out of hibernation.

By on February 22, 2008

atlantausedcar.jpgIt's a bit early to declare February the beginning of the long-anticipated new car sales face plant, what with President's Day sales and a couple of weeks to go, but the Wall Street Journal reports that the industry took a 16 percent dive so far this month. Zoom in on the main players and folks, these decade-low numbers [via J.D. Power] are downright scary. "General Motors Corp., riding momentum created by updated products and hefty incentives, recorded the only sales gain among major manufacturers last month. The latest numbers indicate GM ran into a roadblock during the first 17 days of the month, with dealers selling 31% fewer vehicles than in the first 18 days of February 2007… Chrysler LLC experienced a 27.5% decline despite a recent move to offer more free features on its cars and trucks." CNNMoney reports that "shares of automaker General Motors Corp. fell nearly 6%, making it one of the biggest losers on the Dow 30 Thursday afternoon, as investors were dismayed by weak economic data released earlier in the session." And that was BEFORE this information was released…

By on February 21, 2008

Hummer is GM's only coherent brand. They have two models endowed with an instantly recognizable Picasso-friendly (cubist) appearance. Love 'em or hate 'em (and most people are firmly in the latter camp), everyone knows what a Hummer is: an overweight off-roader with a cheap, cramped cabin and/or a pseudo-military middle finger salute to any idea of fuel conservation. For reasons best left to students of the story The Golden Goose, USA Today reports that "General Motors wants people to start thinking about Hummers as big old trucks built to do a job, instead of as gas-guzzling SUVs for the rich." According to J.D. Power, Hummer doesn't deserve that rep. "The name Hummer connotes a much more gas-guzzling vehicle than really is on the road today," Jon Osborn declaims. "Really, it gets about the same or as good gas mileage as several other (SUVs)." Oh, that's alright then. Anyway, the new game plan: sell Hummers as vehicles built to do a job– that just happen to get 14mpg (or less). "Late last year, GM began airing ads that show other 'tools'— firefighters' gear, a flare gun, a climbing rope— and then show a Hummer, which the ad says can scale 60-degree [sic] inclines. In another commercial, newspaper clippings about blizzards and floods dissolve into a Hummer forging through the disasters to help. Both ads end with the tag line: 'Purpose built.'" Hummer owners may be saving the world, but environmentalists aren't buying it (literally). But then, why would they?

By on February 21, 2008

jaguar_c-xf_concept_2007.jpgOuch. According to The Motor Authority, the big cat didn't quite move 60,500 units last year. Yet its British sibling Land Rover sold 226,395 4x4s. Turns out that our nouveau riche Russian and Chinese comrades prefer rock-hopping to intercontinental cruising. Who knew? We're kidding by the way, as 99.9% of those Land Rovers will never leave socialist asphalt. Regardless, Jaguar is shagged. The Blue Oval Boyz blame for their sub-brand's sharp sales decline on the S-Type's death rattle. We're thinking several decades of inept management culminating in front wheel-drive diesel-powered Ford station wagons had something to do with it. But what about the new XF? Well, as car-mudgeon Jeremy Clarkson points out, Jaguar's new 5-Series competitor fails to realize the XF concept car's mission critical sex appeal. How'd Jezza put it? "Arguing that the two have the same proportions and stance is like saying I have the same proportions and stance as Brad Pitt. I do. But I'm never asked for his autograph." Jaguar dealers are claiming 10,000 pre-orders. As George Carlin would say, what the hell's a pre-order? An order before an order? Oh, and did you think Tata Motors wanted to buy Jag? No way. To acquire profitable Land Rover, the Indian motoring powerhouse had to adopt the underachieving, inbred, basket case money pit as well. They're still trying to get out of that one. 

By on February 19, 2008

infiniti_fx.jpgInfiniti is, for all intents and accounting purposes, a U.S. brand. Last year, Nissan's luxury division shifted American customers' expectations– I mean sold brand fans 127,038 new vehicles (93,717 cars and 33,321 SUVs). And now Infiniti's heading across the pond to convince European buyers that, uh, what's their tagline again? It's not on the press release. Or the Euro-press website. Uh-oh. Despite a deeply worrying lack of branding, Infiniti is set to open some 80 stores throughout the Eurozone. The world's snobbiest car market. Where logical competitor Lexus has gained about as much traction as a Prius attempting a hill climb in a blizzard. To gauge Infiniti's chances of carving out a niche in the home of the luxury car, I rang-up Infiniti Euro Comms. Director Wayne "No Comma" Bruce for the inside dope on the dealers and the marque's plans for luxury conquest sales. [Podcast below] Bruce reckons sporty value-priced products, exclusivity and bespoke customer service will carry the day. Yes, well, the longest journey starts with a single FX: the new model's ready for its Geneva debut. It'll be the first new Infiniti revealed outside the U.S. Infiniti's going to need that kind of commitment– and then some– to make this venture work. Meanwhile, the brand is being "nurtured" in the Middle East.

By on February 15, 2008

bobrow_yak.jpgHello, thank you to read me. I bring news of glorious nation of US and A. In US and A, everyone is paying big fast car but this they not know in Kyrgyzstan where drive yaks. Is clear they not understanding America way in US of A using credit like we know in Kazakstahn. Here for reading is big article from Kyrgyzstan News about pay for car in America.

US car buyers take out longer loans. Longer loans are being offered to car buyers to counter an anticipated slow down in U.S car sales.Toyota is now offering up to 84 months amortization and GMAC is considering offering a 102 month deal. Financiers say people who take the longer terms are the type who wait until a car is worn out before seeking a replacement or those who are not financially solid and are looking for low monthly instalments. The average car depreciates mostly over the first three years. After 36 months it can normally only be sold for half its purchase price.

You seeing they in Kyrgyzstan not knowing of US in A same good like me. Thanking you to read me.

By on February 15, 2008

x08bu_lc076.jpgIn January '08, GM told the world that Buick sold 12,749 vehicles, an increase of 6.1 percent over last year. But wait a minute– if you look at sales per franchise, they racked-up just four sales each (three cars and one truck) in January of both years. Multiplying the four sales per franchise by the 2700 dealers Autoweek says hang out the Buick shingle gives a total of 10,800 sales in January. So where did the other 2k cars go? My bet's on fleets, even though GM says their sales numbers are dropping because they're going through fleet withdrawal. You also have to wonder about the other lot queens that suddenly had a sales spike in January, like the Pontiac G5 (up 50.2 percent) or the Chevrolet Equinox (up 47.7 percent). Further stretching GM's tenuous credibility: their insistence that the Buick Enclave is such a hot seller they can't produce enough and have to put customers on waiting lists. If that's so, why did they start January with a 26-day supply on the dealer lots and end the month with a 41-day supply? I know: looking for transparency from GM is like fishing in a pile of dirt.

By on February 13, 2008

buick_enclave_08_lineup_blog.jpgEven though GM says they have customers lined-up waiting for Enclaves because demand far outstrips production capability, Gasgoo reports they're going to export them to China later this year. It looks like GM's figured out how to expand their production capacity by at least 5k Enclaves, because that's how many they plan to ship to the PRC to sell through their partnership with Shanghai Automotive Industry Corporation (SAIC). When the Lambda-platformed CUV goes on sale in China in October, it will join the Park Avenue, LaCrosse, Regal, Excelle and GL8 models in Buick's Chinese showrooms. Last year, Buick racked up over 332k sales in China, almost twice the units they moved in the U.S. Oh, and if I was on the U.S. waiting list for an Enclave, I'd have a royal conniption fit over this news. Just sayin'…

By on February 12, 2008

boerne-toyota-011c_01.jpgWhen the President of Toyota's NA Ops tells his dealers that the good times "are temporarily on hiatus," you know the U.S. new car market is in BIG trouble. The AP [via the International Herald Tribune] paints a bleak picture: "Jim Lentz told the American International Automobile Dealers Association annual meeting that even strong Toyota dealers are reporting customer traffic down as much as 60 percent this year." Like his opposite numbers in Detroit, Lentz also believes– or at least says he believes– that the U.S. new car market will recover towards the fourth financial quarter, finishing the year at some 16m units. He also predicted that Toyota sales will rise regardless, continuing to buck the declining market. (Toyota sales rose three percent last year, despite a 2.5 percent decline in U.S. new car sales.) Thinking longer term, as Toyota tends to do, Lentz predicted good times ahead. "It is possible for the auto industry to hit 18 million sales annually sometime later in the next decade." 

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