Tag: Industry

By on January 17, 2019

2019 Toyota Prius AWD-e blue - Image: Toyota

When it comes to electric vehicles, Toyota’s North American CEO seems to be on a different page than the company’s big boss, Akio Toyoda. A different page than Ford and General Motors, too. Maybe it’s because Toyoda has the entire globe in his sights, including many EV-hungry markets, while Jim Lentz can only look around, see low, low gas prices and a niche market dominated by a single player, and feel a rush of meh.

Lentz aired his views on our would-be electric future Wednesday, suggesting it would take draconian measures by the government to pry a healthy slice of Americans away from the gas pump. He’s not too enthused with Tesla, either. (Read More…)

By on January 9, 2019

Ford and Volkswagen, two auto giants who spent much of 2018 making eyes at each other and playfully batting away rumors (and sparking a few of their own), might lay their relationship bare in Detroit next week.

The two automakers have already signed a Memorandum of Understanding, partnering initially with the aim of developing joint light commercial vehicles. But that was just the start. Over the course of the past year, this partnership grew to include pickup swaps, electric vehicle platform sharing, joint U.S. plants, and God knows what else — at least according to rumors. Both companies made it clear something big was brewing, but always fell back to a “we’re just talking” line.

Now, it looks like we have a time and place for the announcement. (Read More…)

By on January 7, 2019

2017 Volvo V90 T6 Inscription - Image: Volvo

In the absolutely superb 1949 war film Twelve O’Clock High, a doctor stationed at a U.S. Army Air Force base in WW2 England uses an interesting comparison when describing a character’s mental breakdown.

“Have you ever seen a light bulb burn out? How bright the filament gets right before it breaks?”

A similar phenomenon could be at work in a certain vehicle niche, one which gets more press than actual sales warrant. The lowly, reviled, and suddenly revered station wagon, now referred to in terms meant to dispel the stodgy family hauler image of decades past. (Read More…)

By on January 5, 2019

Don’t worry, it isn’t a long list. You won’t be here all day. While the industry coasted to a surprising, yet slight, year-over-year volume increase in 2018, automakers can’t thank America’s desire for traditional passenger cars for eking out a win. Light trucks carried the day, with car sales plunging to new lows. Industry-wide, U.S. car sales sank 13.1 percent in 2018, pushing their share of the market to just over 31 percent.

Within this soup of sales, a handful of conventional passenger cars exist that held their ground, straining mightily against gale force headwinds. Maybe it’s a futile battle, but it’s worth noting these survivors. (Read More…)

By on December 26, 2018

It’s that special holiday time of year again. For a few short weeks, people go out of their way to be nice to others, and to wish one another the best in the upcoming new year. While the niceness still abounds, we want to know which car manufacturer receives your well-wishes for the future.

(Read More…)

By on December 3, 2018

Image: 2017 Dodge Journey SE, via FCA

Automotive Twitter really is the worst Twitter, for many reasons. First of all, it’s not very “automotive.” With the exception of our dear friend, Bozi Tatarevic, who is a must-follow for his encyclopedic knowledge and Holmesian sleuthing skills, nearly every other autowriter on Twitter views the platform as an opportunity to share the wonkiest political views possible. When they aren’t doing that, they’re all sipping from the same “I am an expert on financial matters but I also dress like a flood victim” Kool-Aid, chanting the same mantra over and over.

Last week was particularly objectionable, what with the GM decision to mostly abandon passenger cars in favor of light and heavy trucks. “People are buying the wrong cars!” they shout to their literally dozens of followers. “Crossover bad! Car good!” they shriek, neglecting to share with you that nearly all of them are childless and nary a one of them has ever tried to fit a collapsing stroller, a diaper bag, and a breast pump into the trunk of a Miata. One particularly stupid individual compared the nation’s overwhelming preference for crossovers to its preference for superhero movies over art films. Sigh.

It takes roughly three functioning brain cells to understand that crossovers are a better fit for the majority of flyover country than small cars are. Of course, once you understand that the majority of the major digital automotive press in this country is based in New York, then it’s not hard to understand that they can’t see outside of their bubbles. You certainly don’t need something like a Chevy Traverse if you are a childless man with a domestic partner who lives in a third-floor Brooklyn walkup with no available parking. But when you live in suburban Indiana with your three kids, all of whom have multiple after school activities, well, crossovers make a little more sense. And since childless couples in NY don’t buy cars and soccer moms in Indiana do, well, it only makes sense that the General is gonna listen to Jennifer from Carmel.

I, however, tend to think that there is an even more sinister goal behind the switch from cars to crossovers. I think it’s to prepare people for the (possibly never) upcoming switch to self-driving cars. Allow me to elaborate.

(Read More…)

By on November 21, 2018

In a Question of the Day post earlier this month, Matthew Guy inquired about the manufacturer which had the greatest number of great cars in their company’s history.

Today we’re going to flip it, and talk about all the awful things. Prepare your fingers for the incoming salt.

(Read More…)

By on November 16, 2018

Image: Toyota

The best-selling passenger car in America for the past 15 years isn’t selling like it once was, and it’s all your fault. With the car-buying populace increasingly wooed by do-everything crossovers and trucks, the Toyota Camry isn’t flying off dealer lots in the same volume as before, and, because of this, the automaker has made the decision to slow production of the mighty midsizer.

What are people buying instead of the Camry? A lot of things, but loyal Toyota owners are increasingly heading over to the RAV4 for their grocery-getting duties. (Read More…)

By on November 12, 2018

Herbert Diess Jetta 2017

Through the end of October, Volkswagen of America’s efforts to gain a 5 percent share of the country’s new vehicle market (by 2020) continued apace, with sales up 5 percent over the same period a year earlier. This sales bump has two crossovers to thank, not cars.

No, definitely not cars.

Still, VW CEO Herbert Diess, when questioned about the brand’s slowly deflating car lineup, doesn’t believe the future involves a light truck-only landscape. To him, the limitations of existing battery technology means future buyers won’t decrease their horizons just for the sake of cargo space. The sedan, Diess claims, is probably not in danger. (Read More…)

By on October 22, 2018

Flat new vehicle sales and an industry that’s far more interested in making crossover lovers’ dreams come true add up to a poor environment for a traditional new car buyer.

We’ve already told you how high demand for a shrinking supply of off-lease sedans and hatchbacks has sent used car prices through the roof compared to just a few years ago. That erased a go-to option for many thrifty buyers. In the new car market, however, automakers’ need to boost profits in a stagnant market means incentive spending is dropping as fast as used car prices are rising.

It’s not just sedans that saw a decline in discounts last month. (Read More…)

By on October 10, 2018

2017 Elantra Eco

Once a bracket where most desirable vehicles lived, the sub-$20,000 price range is not the hot neighborhood it once was. The ever-upward creep of new vehicle MSRPs increasingly places most vehicles above that marker, and shifting consumer trends haven’t helped expand its ranks.

According to data from J.D. Power, 2018 has seen a rapid exodus from the cheap seats, with retail volume from the $20k-and-under crowd sinking 20 percent since the start of the year. Big spenders, on the other hand, are gobbling up $80,000-plus vehicles at a rapid clip. (Read More…)

By on October 1, 2018

2019 Lincoln Nautilus, Image: Ford Motor Company

Canada’s autoworkers feel pretty confident they’ll still have a job next year, as the free trade agreement reached by the U.S. and its northern neighbor Sunday night pretty much keeps the status quo alive in that country’s auto sector.

Just last week, with headway essentially absent from the trade negotiations, President Trump repeated his threat of levying a 25 percent import tax on Canadian vehicles. Such a tariff could easily have seen 160,000 jobs erased from the auto and parts manufacturing industries; perhaps more.

However, just because the industry came out all right in the end doesn’t mean the future is entirely rosy. (Read More…)

By on September 27, 2018

Man, if you live south of the 49th parallel, you missed quite a hubbub yesterday evening. Actually, Americans likely caught a whiff of it, as U.S. President Donald Trump’s lengthy post-UN press conference Wednesday covered a lot of topics, including the one that had Canucks up in arms.

Up here in the Great White North, a country some commenters would prefer to never see mentioned (as this writer apparently mentions it ALL THE TIME), trade remains an understandably hot topic. Canada hasn’t reached a renegotiated free trade agreement with the U.S., unlike Mexico, and there’s a Sunday deadline looming to sign on to the U.S.-Mexico accord. Tick tock. Among other planks, Canada wants to protect its dairy cartel — an entity not universally loved up here, as it greatly increases the price of common food staples on store shelves. However, protecting jobs in that sector means risking jobs in the larger auto sector, a crucial industry whose vehicles Trump has threatened to tax to the tune of perhaps 25 percent. Auto parts could see a 10 percent tariff.

Canada exported $48.8 billion worth of vehicles in 2016.

Toyota, Honda, and the Detroit Three all have assembly plants in Ontario. Last night’s news conference brought nothing but worry to the nearly 200,000 people employed in the vehicle and parts manufacturing sector. What would it mean if Trump pulls the tariff trigger? And is Canada blameless in not yet reaching a deal? (Read More…)

By on September 14, 2018

As we told you yesterday, passenger car market share dropped to 30.6 percent in the month of August as a tide of crossovers, trucks, and SUVs continued swamping the automotive landscape. Few automakers can say their traditional passenger cars are making headway against the current.

Out of the struggling mass of drowning cars, compacts seem to have the most strength left, if only because of their affordability. It’s easier to flip a midsize buyer into a crossover than an entry-level buyer who wants to keep their monthly payments as low as possible, versatility be damned. Most small cars still see significant volume. At the upper end of the scale, however, large cars have become ghosts. I’ve taken to peering at drivers in any new Buick LaCrosse or Cadillac CT6 (etc) I encounter on the roads, checking out their age and gender, as it’s not a regular occurrence.

Still, despite ceding nearly all of its market share, the large car category isn’t entirely a room full of sob stories.  (Read More…)

By on September 4, 2018

Image: Honda

It’s nothing new in the industry, nor is it at all uncommon, but Honda’s distinctly balanced product mix continues to tip ever further towards the trucks and SUV side, despite the assertion of American Honda’s assistant VP of sales, Ray Mikiciuk, that cars will continue as the brand’s mainstay.

With the same number of selling days as August 2017, last month showed the automaker’s volume on the upswing, propelled by the strength of light truck sales. In keeping with the theme of balance, only one mainstream car saw its sales increase, year over year, while only one light truck model saw its sales decrease. (Read More…)

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