If current marketplace trends hold, the Toyota Prius will not be America’s best-selling hybrid by next year.

The steep rate of decline experienced by the Prius in 2017 is no surprise. For one thing, it’s a continuation of the decline we saw earlier in the fourth-gen Prius’ tenure. For another, there are new Prius competitors, such as the Hyundai Ioniq and Toyota’s highly efficient 2018 Camry Hybrid. But the Prius’s rapid slide — sales are down by a third so far this year — is also what Toyota predicted at the turn of the calendar.

Yet even if the rate of Prius decline suddenly and unexpectedly slows, it’s difficult to imagine a scenario in which the Toyota Prius, long the dominant hybrid in America, holds onto its crown as the top seller for long.

The victor in 2018 will, however, almost certainly be a Toyota. Read More >

Critics love the Alfa Romeo Giulia.

And they hate it.

American luxury car buyers, however, are increasingly interested. The Alfa Romeo Giulia lineup has been available since the tail end of 2016. And every month, right through the spring and into the summer, stories of breakdowns and limp-home modes and on-track failures had no apparent impact on increased demand.

July 2017 was the Alfa Romeo Giulia’s best month on the U.S. market to date. Read More >

“We do in fact have to expedite our process of separating our brands.”
– Genesis Motors General Manager Erwin Raphael

From the start, Hyundai Motor America’s plans to launch its upmarket Genesis brand inside Hyundai showrooms was easy to question. Do consumers want the link between a $68,100 Genesis G90 and a $14,745 Hyundai Accent to be so obvious?

Of course not. But affording Genesis a mere corner of certain Hyundai showrooms wasn’t the only problem — Genesis general manager Erwin Raphael also had issues early on with the number of Hyundai dealers signed up to sell the Genesis brand.

“We may see that (350) figure go down,” Raphael said in November 2016, only a few months after the brand began selling cars in America. “I think it is too high.”

Fast forward to August 2017 and Hyundai’s plan to eventually separate the Genesis brand with standalone showrooms, perhaps in 2020, is about to be pulled way forward. “For this brand to really survive and thrive,” Raphael tells Automotive News, “and for us to develop the culture within ourselves and within our dealer network to support and take care of these customers, we do in fact have to expedite our process of separating our brands.”

So what happens to all of those Hyundai dealers who recently spent thousands renovating showrooms to include Genesis studios? Read More >

It’s always a little sad to see an existing model discontinued. Well, almost always. Mitsubishi is taking the hint and officially killing the unloved i-MiEV — something we are willing to bet isn’t going to inspire an abundance of heartache within the driving community.

Despite being a pioneering electric car (and kind of cute), the i-MiEV was never what one might consider a volume vehicle. Since 2015, North America had frequently seen months where the little Mitsubishi couldn’t even break out of the single digit sales bracket. Last year, Canada sold a total of 86 units and the United States moved 94.

With a 62-mile range rating and one of the smallest interiors money can buy, it has always been poorly suited for the majority of American drivers’ needs and repeatedly slashing the price never made up the difference. While Nissan’s Leaf comes in almost $8,000 grand higher, $22,995 is still a lot to pay for something you don’t want — and nobody wanted an i-MiEV.
Read More >

Rolls-Royce Motor Cars Limited is on track to become the highest volume automaker in the world someday. Management is keeping it under wraps but volume has been exploding over the last few years. For 2014, the brand delivered a record 4,063 cars, up 12 percent on its volume for 2013 — closing the gap with Toyota’s 10.23 million global sales.

Unfortunately, Rolls’ five year volume streak didn’t last but it is creeping back up after some minor setbacks. For 2016, the brand announced its second highest ever annual sales result in the marquee’s 113-year history, up 6 percent on its 2015 results, for a total of 4,011 global sales. While it looks like the premium automaker has — once again — placed Toyota’s volume back in its sights, Rolls-Royce doesn’t want to get too cocky and has implemented a strategy that should keep the customers pouring in.  Read More >

July 2017 was the first month in which we could ascertain the year-over-year U.S. sales direction of the one-year-old Fiat 124 Spider.

That direction is down.

In fact, the rate of year-over-year decline — 124 Spider sales fell only 6 percent in a passenger car market that was down 15 percent — was by no means severe. But it’s yet another sign that when American roadster buyers want a Mazda Miata, they buy a Mazda Miata. Read More >

Expand your horizons. See the forest, not just the trees. Look west of the Pacific Coast Highway.

Cadillac sales plunged in the United States in July 2017, dropping by more than a fifth to only 11,227 units. That 22-percent dive was the worst for Cadillac’s U.S. operations since April of last year. The 11,227-sale result represented a five-month low for Cadillac in the United States and the lowest-volume since 2011.

But Cadillac is increasingly a less U.S.-centric automotive brand. Just three short years ago, two-thirds of Cadillac’s volume was produced in its American home market. Fast forward to July 2017 and the majority of Cadillac’s volume isn’t produced in the market where it’s suffering from such dwindling demand.

Rather, Cadillac generates the bulk of its global volume outside of America, where Cadillac demand is rapidly increasing. Read More >

Auto sales in the United Kingdom tumbled 9 percent in July 2017, a fourth consecutive year-over-year monthly decline for a market that had surged to record-high levels in the first-quarter of 2017.

A transitioning period for the Ford Fiesta — entering a new generation that is almost certainly not bound for North America — dropped the UK’s normal best-selling vehicle out of the top spot for a second consecutive month. Another Ford, the Focus, took over as the UK’s top-selling automobile as total sales at Ford, the UK’s top-selling brand, plunged 24 percent compared with July 2016.

Ford’s drop was by no means the only sharp decrease. Losses of more than 20 percent were also reported by Alfa Romeo, Citroën, Citroën’s DS brand, Fiat, Jeep, Peugeot, and Vauxhall.

Apparently, Brexit is to blame. Read More >

Global Subaru operating income rose 19 percent to $1.06 billion in the quarter ending June 30. Net income was up 4 percent to $733 million on an 11-percent revenue increase to $8.9 billion.

Why?

Subaru’s long since gone to look for America. And while U.S. auto sales keep on slowing — falling for a seventh consecutive month in July 2017, for example — Subaru’s U.S. sales keep on rising. July, in which Subaru begins the current fiscal year’s second quarter, was Subaru’s 68th consecutive year-over-year monthly increase.

The U.S. market generated six out of every ten global Subaru sales between April and June. Read More >

Canadian auto sales jumped 5 percent in July 2017, a big jump for an industry that has now posted growth in six of 2017’s first seven months.

Year-to-date, sales are well ahead of 2016’s pace: 58,000 units greater than in the first seven months of 2017. In fact, on a quest for the Canada’s first ever year of more than 2,000,000 sales, the industry would now need a genuine downturn in 2017’s final five months to avoid a hugely successful year.

More proof that the Canadian auto industry’s on a hot streak? Even passenger car sales are… well, they’re only down slightly. Read More >

Toyota Motor North America’s executive vice president for sales, Bob Carter, is not ready to rain down doom and gloom on the state of the U.S. auto market.

From Toyota’s perspective, even the July results — 2017’s seventh consecutive month of decline, and the worst decline yet — didn’t represent the end of the American auto industry as we know it. In fact, total Toyota/Lexus U.S. volume actually increased 4 percent despite a shorter sales month than in July 2016.

While aware of the overall climate, in which Toyota sales are down more than 2 percent this year, Toyota’s U.S. sales boss says he’s “energized,” according to Automotive News. “The industry is not at a pace where it was in 2016 — we didn’t expect it to be at the pace of 2016,” Carter says, “but it’s still very healthy.”

And not without good reason. Read More >

We learned early in July that many of the early 2018 Toyota Camrys available in Toyota’s U.S. showrooms wouldn’t be built in Toyota’s Georgetown, Kentucky, assembly plant.

Through June, not a single one of the 2016 and 2017 Camrys sold in America were imported. But all of the 2018 Toyota Camrys sold in July came across the Pacific from Japan.

Granted, most of the Camrys leaving Toyota showrooms are still old new Camrys, not new new Camrys. Read More >

Every midsize car on sale in the United States reported declining year-over-year volume in July 2017. Every car except the Dodge Avenger, which came back from the dead with 10 reported sales after a nine-month hiatus. 2014 was the Avenger’s last model year.

But forget that sales stat quirk — Pentastar Avenger Blacktop Edition, be still my soul. Every other midsize nameplate generated fewer sales in July 2017 than July 2016, with losses piling up fastest at Ford and Hyundai, with the Fusion and Sonata, respectively.

Between major Fusion and Sonata losses and decreased volume everywhere else, U.S. midsize car volume fell by a fifth in July 2017 — a 36,000-unit decline. Read More >

Exchange rates seriously hurt Japanese manufacturers over the past year as the yen bobbed and weaved following 2015’s surge. However, Honda was not among them. The final quarter of 2016 saw the automaker posting a 27 percent earnings increase, despite being hammered by the same foreign exchange losses as the rest of its Pacific brethren.

The first quarter of 2017 appears to have shaped up much the same way, only with slimmer margins — exactly as Honda predicted. Knowing that the North American market was about to take a turn for the worse, company analysts clung to the hope that more favorable currency rates and higher-than-expected sales in Asia would keep operating profits out of the red. Earnings ultimately creeping ahead by 0.9 percent to 269.21 billion yen ($2.40 billion) for Q1 — no thanks to the United States.  Read More >

July 2017 auto sales were expected to decline for a seventh consecutive month, sliding further and faster than at any point this year. In the end, with incentive spending up 5 percent, U.S. auto sales dropped 7 percent in July 2017, a year-over-year decrease worth roughly 105,000 sales.

Detroit was to blame for much of the losses, in part because of steep reductions in fleet volume. General Motors, Ford Motor Company, and Fiat Chrysler Automobiles combined to lose 76,000 sales. General Motors came within 4,050 sales of losing the top seller’s crown to Toyota as GM July volume fell to a five-year low. At Ford Motor Company, total Ford/Lincoln volume fell to a six-month low. Fiat Chrysler Automobiles suffered steep declines at Jeep, Chrysler, Dodge, and Fiat.

Detroit automakers were by no means the only manufacturers losing U.S. auto sales in June. The Honda brand was down 2 percent, Nissan slid 4 percent, Kia and Volkswagen both fell 6 percent, and Hyundai plunged 30 percent.

But there were also bright spots. Audi sales rose 3 percent for its 79th consecutive monthly increase. Subaru sales, rising 7 percent in July, improved for a 68th consecutive month. And at Toyota, where the RAV4 was by far and away America’s top-selling utility vehicle in July, total volume rose 4 percent to 193,155 units, the best month for the brand in 2017 and the second-best of the last two years.  Read More >