Category: Sales

By on September 21, 2017

2017 Chrysler Pacifica Touring-L Plus

We all know minivans bring out a driver’s inner beast. Here at TTAC, hardly a day goes by where we’re not discussing which minivan is best suited for an impromptu spin around the track. Seriously.

However, if exploring the limits of your minivan’s handling abilities tops your short list of things to do today, Chrysler Pacifica drivers had best hold off — at least if you’ve got a crowded backseat. Fiat Chrysler Automobiles doesn’t want owners driving aggressively until they’ve taken their van in for a voluntary recall. Read More >

By on September 20, 2017

2018 Lexus LC500 front - Image: LexusLexus has high hopes for the LC, we told you in March. Not yet on sale at that point, Lexus was entirely transparent about the company’s belief that it could sell 400 copies of the LC500 and hybridized LC500h every month in America.

“That’s a big number,” I wrote six months ago, expressing a measure of doubt. But Lexus was insistent, based on “tremendous response to the LF-LC show car” from 2012, a successful carryover to production of concept car design, and “positive feedback in customer clinics.”

Doubt was expressed by most commenters, as well. “Good luck with that,” Master Baiter told Lexus. “Lexus, you need help,” said thats one fast cat. “Setting a goal like this is just setting Lexus up for the unnecessary perception of failure,” dal20402 wrote. “Dumb move.” badhobz said, “I don’t think it’ll do that well.”

It’s been half a year. It’s time for the Lexus LC to stand up and be counted. Read More >

By on September 20, 2017

2017 Subaru Impreza sedan and hatch - Image: SubaruThrough the first eight months of 2017, consumers across America have acquired 12 percent fewer new passenger cars than during the first eight months of 2016.

That’s a drop of 565,000 sales, a rate of decline that stands in stark contrast to the U.S. auto industry’s 4-percent year-over-year light truck improvement. Cars now account for just 37 percent of all auto sales, down from more than 50 percent as recently as 2012. But it’s not all doom and gloom. Some auto brands are selling more cars this year than last, and a wide variety of cars are accelerating their sales pace. Subaru, for example, has already sold 17,981 more Imprezas in 2017 than in the same period of 2016.

So we’ve compiled a list of every passenger car that’s making meaningful headway in America’s anti-car market — the cars that are selling more and more often even as many of their competitors suffer under the weight of a pro-F150, pro-RAV4, pro-Escalade ESV wave.

The list is not very long. Read More >

By on September 19, 2017

2018 Ford Fiesta ST three-door - Image: FordOver the last seven years, America, you didn’t buy many Ford Fiestas. Fewer than 430,000, in fact. For perspective, in the much smaller United Kingdom market, Ford sold over 500,000 Fiestas in just the last four years.

But the Fiesta’s lack of popularity — and its dramatic loss of popularity in America — is not a unique-to-Ford situation. U.S. sales of subcompact cars plunged by more than a fifth, year-over-year, during the first eight months of 2017. That tumble comes after U.S. sales of subcompact cars declined in 2015 and 2016, as well.

Nevertheless, it comes as no surprise that Ford, after exploring America’s affordable avenues for one generation of Fiesta, isn’t bringing the seventh-generation version to America. And now we have confirmation that there is absolutely no hope the next-gen Ford Fiesta ST will come stateside, either. Read More >

By on September 19, 2017

2018 Honda Accord Ohio assembly plant - Image: HondaAmerican Honda’s vice president for sales, Ray Mikiciuk, won’t provide a firm forecast for sales of the 10th-generation Honda Accord. But as far as next year goes, “I don’t expect to sell fewer Accords in 2018 with this great new product,” Mikiciuk tells CNBC.

With belief in the company’s new product, Honda has invested $267 million into its Marysville, Ohio, plant where the Accord, Acura TLX, and Acura ILX are assembled. With 300 additional employees, American Honda is following the lead of Toyota’s all-new 2018 Camry.

At the Camry’s Georgetown, Kentucky, assembly plant, production of the new TNGA-based Camry required Toyota to build up its employee count to the highest level ever. That’s certainly not the way rivals are approaching America’s midsize segment. You’ll recall that General Motors cut Chevrolet Malibu production — and consequently, jobs — in Kansas City earlier this summer. Prior to the new Camry’s launch this summer, the Malibu was the freshest midsize sedan on the block, yet Malibu sales have plunged by more than a fifth in 2017.

Ohio production of the 2018 Honda Accord began yesterday, September 18th. But what do Honda’s vague sales forecasts mean in the broader American midsize segment?

More market share. Read More >

By on September 18, 2017

Old Mazda dealer- Burdick Mazda - Image: Mazda“We have been working more closely with our dealers to evolve their businesses and through that process,” Mazda tells Automotive News, “some new dealers have chosen to begin working with us, while others have made the decision to leave the Mazda brand.”

Mazda has been open about its goal of earning 2 percent of the U.S. market while being forthright about the brand’s intentions to do so only on solid ground. This means fewer discounts, a premium vibe, and the kind of higher margins that make dealers happy.

On the dealer side of the equation, Mazda now wants those dealers to improve. In some cases, that means a new location. In others, a new exterior design is necessary. More thoroughly trained staff members is key, as well. But it’ll be slow going. Of Mazda’s roughly 600 dealers, the brand acknowledges that some have forsaken the automaker, though Mazda won’t say how many. Since the efforts to revamp dealers began last year, only 26 have been upgraded so far. By the end of the decade, Mazda believes roughly one-sixth of its network will have undergone a remodel.

In the meantime, Mazda is getting further away from reaching its 2-percent goal. Read More >

By on September 16, 2017

Hyundai santa cruz concept

After Hyundai’s American division canned former CEO David Zuchowski for failing to meet internal sales targets last December, it’s no mystery what Job One is for the new guy.

Kyung Soo Lee, a 61-year-old veteran of the company who started his career back in 1982, takes the helm of a troubled ship next week, Hyundai announced Thursday. As president and CEO, Lee (Kenny to his friends) is responsible for reversing a dismal sales trend that sunk his predecessor, as well as the company’s U.S. fortunes. Read More >

By on September 15, 2017

2019 Porsche Cayenne pixelated rendering - Image: PorscheOn this, TTAC’s authors and TTAC’s audience are largely in agreement: luxury sport utility coupes are not the answer to the vehicular challenges of this age.

So Porsche is probably going to build a Cayenne Coupe.

It’ll probably have four doors. It’ll probably be more expensive than a regular Cayenne. It will almost certainly not be as good or half as attractive as a Porsche Cayenne. Read More >

By on September 15, 2017

2017 Kia Forte Sedan

Is there any lower form of life in the automotive biosphere than the buy-here-pay-here dealership operators?

It’s hard to see them as anything other than rent-seeking scumbags who inflate the market for inexpensive used cars, then turn around and sell those used cars to the poorest and most unfortunate members of our society for prices that are often multiples of the acquisition cost. There is literally no ethical reason for them to exist; most of the time the “down payment” charged by these dealers is more or less the true value of the car. Everything that comes afterwards is just tasty cake topping — and if the working mother or fixed-income older person buying from them misses the very last weekly payment, they can repossess the car and sell it all over again on the same ridiculous terms.

In a world without buy-here-pay-here dealers, the transaction prices of low-cost cars would eventually settle to the point where they could be bought for the “down payments” being handed over today. In fact, I’ve heard BHPH operators brag about making money on the down payment alone. The difference between one of these people and the victims of their operations, of course, is that the former has access to capital and an entry into the protected world of auto auctions.

You’ll often hear these dealers tell stories about how they “help their community.” The members of the community, of course, know better. They can see the BHPH dealers living high on the hog many miles away from the low-income areas in which the lots are deliberately placed right next to liquor stores and lottery ticket providers. So it’s no wonder they feel no sense of loyalty to their “dealers” and will often make the cars disappear without further payment if they can. To combat this, the BHPH people will often have remotely-operated ignition blocks installed into their vehicles. If you don’t make the payment, or if the dealer fails to record the payment correctly, your car is shut off — regardless of where you are or what you need to do with the car next. If you don’t deal with the bottom feeders of the auto biz, you’ve probably never seen one.

That might be about to change.

Read More >

By on September 15, 2017

2018 Lexus LC - Image: LexusTiming is tough.

Toyota’s Lexus luxury marque launched the fourth-generation Lexus LS for the 2007 model year, just prior to an economic collapse that was followed up by an anti-car/pro-SUV shift. Lexus, which averaged more than 25,000 annual U.S. sales of its LS flagship sedan during its third generation and then topped 35,000 sales in 2007, suddenly found itself struggling to top the 10K marker.

As the fourth-gen LS’s tenure came to an end, Lexus watched as demand for the LS quickly collapsed. From fewer than 11,000 sales in 2013 and fewer than 9,000 in 2014 to barely more than 7,000 in 2015 and only 5,514 in 2016, the once hugely successful Lexus LS — a former leader of America’s large luxury sedan class and the car that was responsible for the genesis of Lexus — became an afterthought.

The fifth-generation Lexus LS is set to go on sale this winter, and Lexus expects to see a huge increase in demand for the new car in 2018. Lexus does not, however, expect the LS to generate anything like the kind of interest the big sedan did prior to the proverbial global financial crisis. Read More >

By on September 15, 2017

2018 Volkswagen Atlas - Image: VolkswagenAt launch, the lone Volkswagen Atlas available in the United States was the more powerful 3.6-liter V6, a Tennessee-built $34,425 three-row crossover with 276 horsepower and 266 lb-ft of torque. All-wheel drive is an $1,800 option. The Atlas was rated at 18 miles per gallon in the city; 25 on the highway. City fuel economy for AWD models dropped by a single mpg; highway mpg fell to 23.

Now we know how much money you can save by purchasing the front-wheel-drive-only Volkswagen Atlas 2.0T, which suffers a loss of 41 horsepower but generates very nearly as much torque as the V6 (258 lb-ft) and does so 1,150-rpm closer to idle.

Not surprisingly, a small, modern, turbocharged engine is barely more efficient than the larger, naturally aspirated V6. Read More >

By on September 13, 2017

2018 Toyota Camry XSE white - Image: ToyotaThe launch of the all-new 2018 Toyota Camry began in July 2017 and delivered a big boost to America’s best-selling midsize car in August 2017.

As its competitors combined for a 12-percent loss valued at nearly 16,000 fewer sales than in August 2016, Toyota Camry sales jumped 13 percent, a gain of 4,187 sales. That figure includes 6,805 new-gen Camrys imported from Japan, where the Camry’s home market factory is being relied upon while Toyota’s Georgetown, Kentucky, assembly plant gathers steam for the entirely different Toyota New Global Architecture.

With falling sales across much of the category and rising volume at the top seller, Toyota got exactly what it called for in August 2017: a huge market share increase. But did the Camry provide the rumored boost to the segment overall? Quite clearly no, not yet. Read More >

By on September 12, 2017

2017 Volkswagen up - Image: VolkswagenThe global auto industry is not a place in which small car production is as straightforward as it was a decade or two ago.

Brought closer to home, Americans are buying roughly 30-percent fewer subcompact cars now than they were just three years ago. With next to no fuel economy advantages; limited payment upside; and less refinement, power, and space, why would a car buyer choose a subcompact over a compact sibling? Most buyers don’t. In the United States, compact car sales are five times stronger than subcompact sales. August’s top three compacts (Civic, Corolla, Cruze) outsold their subcompact brethren (Fit, Yaris, Sonic) by more than seven-to-one.

Many automakers don’t even bother selling their smallest cars in North America. Mazda’s latest 2 never saw U.S. import. FCA has left the compact market, having long since left the subcompact sector to rivals. Subaru doesn’t dive below the Impreza platform. And Volkswagen stops at the Golf, leaving the subcompact Polo for more small-car-friendly countries.

But how keen on small cars are those other countries? In some instances, not keen enough. Volkswagen boss Herbert Diess tells Autocar, “Selling small cars is not easy.” And he’s clearly not just talking about F-150-loving America. “It’s a very European problem,” says Diess. As a result, the Volkswagen Up city car, a Lupo successor, may pull out of Europe in favor of emerging markets only. Read More >

By on September 12, 2017

2018 Kia Stonic, Image: Kia

If you’re an aspiring B-segment crossover owner looking for Korean value and a fresh face, but aren’t exactly enamored with the 2018 Hyundai Kona‘s looks, you’re out of luck. For now, anyways. The Kia Stonic, revealed in Europe earlier this summer, is definitely not making the boat ride to America. Well, probably definitely.

Definitely maybe.

The automaker says it has no current plans to offer the subcompact crossover — which is arguably better looking than the U.S.-bound Kona — to utility-crazed on this side of the ocean. It’s clear Kia isn’t so sure of the extent of Americans’ appetite for non-cavernous vehicles. Read More >

By on September 12, 2017

2016 Mazda CX-9 - Image: MazdaMazda is increasing the base price of its CX-9 flagship by $610 for the 2018 model year.

With more standard safety kit, Mazda’s $32,460 2017 CX-9 (after delivery) now becomes the $33,070 2018 Mazda CX-9.

But can Mazda, which sells the CX-9 at a slower rate than essentially all of its competitors, operate at an even higher price point? The second-generation Mazda CX-9 was already priced at a premium: $775 more than Pilot, $835 more than Highlander, $1,210 more than Pathfinder, $1,370 more than Durango, $1,585 more than the 2018 Traverse.

Mazda doesn’t seem terribly bothered. The majority of CX-9s sold in America are already top-spec Grand Touring and Signature models, higher-margin vehicles that are helping Mazda slowly craft an image as a premium mainstream brand, buoyed along by Driver’s Choice commercials and, as we can see now, CX-9s with $33,070 base MSRPs. Read More >

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