The C-segment did not have a great July, especially compared to July 2009’s Cash-for-Clunker-inspired clamor for compact cars. The three exceptions were the Hyundai Elantra, Kia Forte and Mitsubishi Lancer, which all handily beat their July 2009 numbers. If you’re getting sick of the “Hyundai momentum” storyline, look elsewhere. On the other hand, with production of 2012s underway, the lame-duck Focus has settled into a 15k-month routine (actually averaging about 14,500 over the last 12 months), and Cobalt is falling away as Lordstown tools up for the Cruze. And with a new Elantra due by the end of this year, real competition in this segment is only just beginning.
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.
Because we are halfway through the year, we’re mixing things up a little by comparing June sales to six-month totals instead of to June 2009 sales.
Toyota takes the C-Segment crown with the one-two punch of its mixed Corolla/Matrix sales. A breakout here would be nice, but since Toyota’s not offering, we’ve included the HHR with Cobalt and the Jetta with Golf to even things up a little. Credit the Focus for selling with the best of them without a hatchback platform-mate, and note that the Elantra’s monthly number has improved considerably relative to its six-month average.
With today’s release of Chevy Cruze pricing information driving debate over compact-segment value, what better way to kick off our May sales analysis than with a look at some of the biggest names in the “C” segment? From top to bottom, each of the big nameplates in this segment enjoyed year-over-year growth last month. Can the new Cruze steal some of that growth from its established peers?
Honda’s decision to delay a redesign of its Civic piqued some curiosity amongst our Best & Brightest, particularly Mark MacInnis who requested a five-year sales chart on the Civic and a few competitors. We’ve gone one better and worked up a 15-year graph of sales volume for some of the more popular compact sedans in the US. Of course a significant number of those pre-2001 Civics were hatchbacks, and Toyota counts its Matrix hatch as a Corolla, so the numbers are just a little skewed. Still, it gives a fairly good sense of where the major players stand in this important segment.
Everybody knows a “Mr. Euro”. Hell, you may even be “Mr. Euro” to your friends. Mr. Euro is the guy who, for some reason, wants the cars he cannot have in the United States. He’s the guy who says he would drive a 520i “in a heartbeat” given the chance, the dude who thinks we’re missing out because the Renault Twingo stays on the froggy side of the pond, the fellow who desperately wants a Vauxhall Zafira for child-lugging purposes. I still fondly remember the conversation I had with a similar fellow, whom I shall call “Mr. JDM”, around 2004 or so:
“I would buy a Japanese Skyline sedan in a heartbeat, if only they would bring them here, and I’m not worried about the money.”
“Good news. They did. It’s called the Infiniti G35. Allow me to drive you to the dealership so you may make your cost-no-object dream a twenty-nine-thousand-dollar reality.” Alas, the grass is never so green when it’s cut into sod and shipped to our lawns, and perhaps that’s why so many Mr. Euros find themselves conspicuously absent from the lists of Saturn Astra or VW Rabbit owners. It’s also possible that the loudest voices on the Internet buy the fewest cars, which would also explain why the current Ford Focus has been such a roaring success despite the heretical nature of its US-only design and execution.
After several years of hype, Chevrolet is releasing images pictures of its US-market Cruze compact in advance of the New York International Auto Show. The Cruze has been on sale around the world for nearly a year now, though the US launch delay has actually been a blessing in disguise, thanks to early transmission problems and a recall for fuel supply pipes. Now that Chevy’s next small thing has had its teething pains, the Daewoo-developed compact is being shown in a dizzying array of trims and packages for the US market. Chevy hopes that the Eco trim level will bring some much-needed enviro-cred to the brand, by offering a 40 MPG (freeway) version powered by a turbocharged 1.4 liter engine. To match that long-established mileage goal, Chevy had to make a number of modifications to the Cruze, including (Read More…)
Given the growth this segment has enjoyed over the last year, it’s more than a little odd to see the Escape taking top honors. After all, it’s received a single refresh since it went on the market in 2000. On the other hand, fleets dug Ford last month. [Please note that the outgoing body-on-frame Kia Sorento sold 3,621 units in January 2009]
GM sold a lot of compact cars in January. Gm also had a high percentage of fleet sales in January. Coincidence? We think not. [Please note: VW Rabbit sales do not include GTI]
We’ve spilled a few pixels on these pages over Hyundai’s dedication to direct injection (DI) technology, even going as far as to crown Hyundai the “new Honda” of motor technology. But DI technology isn’t without its downsides, and Hyundai tells Automotive News [sub] that the technology isn’t likely to appear on future engines with less than two liters of displacement.
Business Week reports that Toyota are planning to capture 10% of the Indian market. “India will play a pivotal role in Toyota’s global expansion plans,” Vice Chairman Kazuo Okamoto said today at the Delhi Auto Show. “The time has come for us to strategically accelerate our growth here.” Toyota is using the Delhi Auto show to showcase the cars which will lead the assault for 10% of the Indian market, the most important of which is Toyota Etios (which will also be produced in Brazil). Autocar.co.uk reports that Etios is 90% production ready and that it will go on sale in India at the end of 2010 (with first-year sales projected at 70k units). Because of the price (around $10000) it’ll go head to head with the Maruti Swift, the very boys who hold a huge chunk of the Indian car market. To help combat Maruti, a larger and better quality interior is key to the Etios. Autocar also reports that in order to keep costs under control, Toyota went on a cost cutting exercise. Measures taken include, limited sound proofing, a hard, but durable, interior and one windscreen wiper. But before you cry “Toyota are turning into GM”, don’t be fooled. Toyota tried the same thing with the Aygo in Europe and the end result was a good car which sells very well.
CSM Worldwide seems to think so, telling Automotive News [sub] that new compacts from Ford and Chevrolet are being pushed into the market to comply with increasing fuel-efficiency and CO2 emission standards. If gas prices stay steady, CSM’s VP for Forecasting, Michael Robinet says “extreme pressure to channel smaller vehicles in the market due to CAFE and emissions standards will raise incentives and lower profitability.” “It is very possible that U.S. automakers will not achieve their objectives of selling small cars at a profit,” adds CSM CEO Craig Cather. The crux of the argument is that CAFE ramp-ups to 35.5 MPG by 2016 create incentives for automakers to produce small cars without corresponding consumer demand. Luckily there’s a planned gas tax hike for that.
Just because GM has released photos of the US-spec Cruze ahead of its LA Auto Show debut, doesn’t mean they couldn’t pull an Alfa and change that ridiculous name. After all, Cruze will mark the eightieth name used by GM on a mid-sized or smaller car since 1968, according to our in-house historian. And it’s hardly the kind of name you want to build on, or make part of your company’s heritage. But then, given GM’s small-car history, what is?
Ever get the feeling that the car game is dealing with some malaise? Dieter Zetsche sure seems to. “The definition of luxury will be somewhat different,” Doctor Z tells the Wall Street Journal. “It will be fewer CO2 emissions and more modesty in appearance.” And this from the company that sells cars on the back of a brand dripping with immodesty and ostentation. But no matter, the decision has been made: Zetsche wants to chase what the WSJ terms “Americans’ growing interest in downsized models that offer upscale features and finishes.” Wait, growing interest? The MINI sells decently, but the A3 (fewer than 3k units sold year-to-date) and 1 Series (fewer than 10k units year-to-date) are hardly setting the luxury segment on fire. Damn the torpedoes, people want green modesty, and Zetsche’s going to give it to them with four compact models planned for the US sometime after 2011.
For sure, there will be another B-class, which will be pretty similar, address the same customer as the B-class today. The three other body styles clearly intend to target additional and different segments from the one that we can target today, including gender barriers.
Smaller, greener and more identity-politics-y. That sounds like just what the luxury market has been begging for! And we haven’t even started in on the cost-cutting yet.
It’s not that GM’s Korean Daewoo division doesn’t need more money. The problem is that the only bank willing to lend a dime, the Korean Development Bank, wants strings attached. Since GM came up with the cash to buy up Daewoo’s $413m rights offering, it says Daewoo is out of trouble for two more years. Or 18 months… depending on that troublesome global car market. Meanwhile, GM-Daewoo’s $5b worth of forward contracts will burn up $300m in cash every month, as the debt matures. Although KDB and GM-Daewoo’s other lenders refuse to roll any of that debt forward and have been firm about enacting safeguards before loaning the automaker more money, GM’s Nick Reilly says Daewoo can now negotiate from a position of relative strength. Emphasis on relative.
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