This, according to TrueCar.com, is what automakers spent on incentives last month. Though Chrysler and GM have cut compared to November of last year, their incentive spending is on the march compared to last month, and they still vie for industry “leadership” in these profit-sapping spiffs. But that’s just TrueCar’s perspective…
Automotive News [sub] reports that October’s Seasonally Adjusted Annual Selling Rate (SAAR) hit 12.2m last month, making November the market’s second month back over the 12m mark since last year’s Cash For Clunkers-fueled buying spree. Analysts are calling the 12m mark an “important psychological level,” although sales appear to be essentially flat compared to last month. Check back for an updated chart as more automakers report their sales.
Does the new BMW Six Series improve on Bangle’s wild-eyed vision of an avant-garde gentleman’s coupe, or is it as bland as the music it’s introduced to here? Personally, I’d vote for the latter, but then I always thought that the last Sechser was one of Bangle’s more successful designs, injecting some much-needed vitality in the otherwise ultra-conservative world of German full-sized coupes. But then I’m still decades away from being in the target demographic for the Six Series… what say you?
Yesterday’s discussion of Porsche’s identity as a pure sports car company (compared to an SUV-peddling luxury brand) was predictably emotional, so here’s the cold, hard truth. The Cayenne has been Porsche’s best seller in the US since its introduction, excepting a 911-happy 2006. Oh, and this year it’s on track to come in second… to the Panamera. Meanwhile, Porsche’s Boxster/Cayman duo has been dropping off since before the most recent recession even began, and 911 sales are approaching a 15-year low. Now that we know the facts, is there any debate about what would happen to Porsche if it stuck to its sports car knitting?
This morning General Motors held a press conference at its Detroit-Hamtramck Assembly plant to announce that the Chevy Volt was in production, on sale, and will start shipping today. The Volt goes on sale in seven initial markets, with a national rollout in early 2011. Export sales will begin late next year.
While there were a number of journalists in attendance (including, significantly, a noticeable number from Japanese news outlets) and though there was some news to be made, this particular dog and pony show was more of a pep rally than anything else. Hundreds of assembly line workers from the plant attended the event and the speakers frequently praised them. When GM North America president Mark Reuss walked in before the event started, he made a point of congratulating each member of the GM management team that was in attendance. Ron King, UAW president, was busy so Gary Bernath stood in. He went out of his way to praise the locals at all the GM facilities involved in the Volt project, and he thanked Michigan Gov. Jennifer Granholm and other elected officials. (Read More…)
Remember the just-released Toyota Ractis? It’s just dropped in Subaru form, giving the Japanese market the tantalizing choice of two distinct brands for an identical four-door subcompact hatch. Moreover, the Trezia marks a changing of the guard at Subaru: whereas Subaru used to develop and sell a wacky rainbow of subcompact and “kei” cars and trucks (some of which are still visible at Subaru’s Japanese website), all future Subarus smaller than the Impreza will be rebadged Toyotas. This change won’t materially affect the US market, but it can’t help but erode Subaru’s image as an independent small maker of quirky cars. Apparently there is just no place for that kind of automaker in the future… the revolution will be rebadged.
Just two short years ago, Volvo’s press flacks were talking a big game about Volvo’s luxury aspirations, saying things like
We want to continue to compete with Mercedes, BMW and Audi. We’re working to improve the premium-ness of the brand and our products.
Even as recently as this year, Volvo execs have made much of the need to “not damage the Volvo brand.” But, having been bought by the Chinese automaker Geely, the Swedish brand has changed its tune. Autocar quotes Volvo’s new CEO, Stephen Jacoby, saying
Let’s ditch this talk about premium. It sounds like a pricing strategy and it’s got an expensive ring to it. We need to focus on elegant Scandinavian simplicity, our own unique identity, and not copy our competitors.
It’s Black Friday, the national holiday of deal-getting, and to celebrate we’ve got a big question: What new car is the best value for money? It’s a big, open-ended, debate-sparking kind of question… the perfect way to debate your way out of your tryptophan coma. To get things started, we’ll begin by nominating the Subaru Impreza 2.5 Five-Door. For $18k you get Subaru’s fantastic AWD system, 170 HP, good storage space, and a package that’s ass comfortable cruising at freeway speeds as it quietly tootling around town or blasting up snowy roads to the mountain. Plus, you get the character and grunt of a boxer engine… and when it comes to new automobiles, uniqueness is priceless. OK, over to you, B&B. Which new car on the US market is the steal of all deals (before incentives, etc)?
Bloomberg reports that the General Services Administration has increased the percentage of hybrids in its fleet purchases from about one percent to at least ten percent since President Obama took over. And you better believe that the government isn’t buying the same hybrids that American consumers are.
The U.S. government buys hybrids almost exclusively from Ford and GM. It bought only 17 Prius models and five of Honda’s Civic hybrids in the past two years. Chrysler Group LLC stopped making hybrids in 2008 after about two months of production.
The government purchased about 64 percent of GM’s Chevy Malibu hybrid models and 29 percent of all Ford Fusion hybrids manufactured since Obama took office in 2009, the data show. GM stopped making the Malibu hybrid in 2009 after lack of consumer demand. GSA also bought about 14 percent of Ford Escape hybrids.
According to Bloomberg’s math, a quarter of the hybrids built by GM and Ford since Obama took office have been purchased by the government. And the fleet buys weren’t cheap… for taxpayers or the automakers.
GM was the first automaker to experiment with new-car sales on Ebay, in a grand experiment that resulted in an undisclosed number of sales (estimated at between 20 and 50 actually sold through eBay). GM’s Mark LaNeve insisted at the time that the program led to sales not logged through Ebay, but then he was booted from GM about a week after GM’s Ebay experiment fell apart. Which makes Tom Loveless, the head of Kia’s US sales operation a brave man; with only this single, discouraging precedent, Bloomberg reports that Kia is diving into Ebay sales… and unlike GM, it’s not limiting the experiment to California.
Motor Trend gets three GM sources to confirm the return of the Pontiac G8 (Holden Commodore) to the North American market… only this time it’s coming as a Chevy. One exec even brags
We have a good name for it…
…and no, it’s not “Impala.” Nor is this simply a civilian version of the Caprice police model, which is based on the long-wheelbase version of the Zeta platform. This will be a limited-numbers affair and V8-only, reports MT, because currency fluctuations have made shipping cars from Australia more expensive. Should GM even be messing around importing the the Antipodean Driving Machine? The numbers might say no, but the fanboys are already screaming “hell yes” (or, more accurately “what about an El Camino ute version?”). Check out Michael Karesh’s reviews of all three versions of the Pontiac G8 (you can even read Liebermann’s Take Two on the GT if you must), and let us know what you think of the return of the G8.
NHTSA Investigation Action Number AQ10001, opened November 18, 2010 notes:
The agency, particularly in recent months, has been informed of incidents involving allegations of personal injury and death claimed to have been caused by safety defects and failures to conform to minimum Federal Motor Vehicle Safety Standards (FMVSS) on rental car vehicles for which a safety recall to remedy the safety defect or noncompliance had allegedly not been performed prior to the rental car company’s lease of the vehicle. NHTSA understands that there is presently a petition before the Federal Trade Commission (FTC) seeking to prohibit at least one rental car company from renting vehicles on which safety recall campaign remedies remain outstanding. The purpose of this audit query (AQ) is to investigate recall remedy completion by rental car companies on the above-listed safety recall campaigns. These campaigns were chosen due to their inclusion of vehicles used in the rental market. This information is expected to provide the agency an indication of how completely and how quickly rental car fleets, in general or individually, perform necessary recall-related repairs or other remedies on the vehicles owned and then leased for use on the roadways.
But rental companies wouldn’t risk the safety of their customers for a buck would they? The Enterprise/Alamo/National syndicate tells Bloomberg it grounds cars upon receiving recalls… Hertz and Avis have yet to chime in. The weirdest part of it all: only vehicles made by GM, Ford and Chrysler are being investigated. Why are the Accents and Rios receiving recall repairs while Avengers and Malibus are left to be investigated for “failures to conform to minimum Federal Motor Vehicle Safety Standards”? Whiskey Tango Foxtrot? A list of vehicles under investigation can be found below the fold.
The Nissan Murano may start at a reasonable $28,500, but stepping up to the recently-announced CrossCabriolet version will set you back a healthy $46,390 (before $800 destination charge) according to Nissan ‘s website. That makes it the second most-expensive Nissan after the GTR, and it comes in only one trim level (with navigation, heated everything, a Bose system, HID headlights and more). So, why wasn’t the CrossCabrio released as an Infiniti again?
Because success in the auto industry depends upon both the buildup of industrial might and deft maneuvering on the winds of fashion, analysts often struggle to determine how business decisions impact consumer choice. For example, GM and Chrysler long resisted the pressing need to file for Chapter 11 bankruptcy protection because their leaders believed that Americans would not buy a car from a bankrupt firm, and that sales would go into an irrecoverable tailspin if they filed. Needless to say, that assumption proved to be deeply flawed, and sales during the GM and Chrysler bankruptcies barely dipped (if only compared to the miserable months preceding bankruptcy). In any case, the rating agency Moody’s is taking on the challenge of translating good business news into sales by arguing [via Bloomberg]
U.S. consumers who don’t know anything about over- allocation options or the need for strong liquidity in a cyclical industry knew that something exceptionally good happened to GM last week. That knowledge makes it more likely that they will consider buying a GM vehicle and possibly buy one. That’s good for the company’s credit quality.
But does the general air of positivity surrounding the IPO actually make a difference with consumers?
If you love data almost as much as you love cars, you’re in for a real treat. The EPA has issued a report [PDF here] on the last 35 years of light-duty vehicle efficiency trends, and it’s jam-packed full of fun graphs detailing the evolution of America’s car market. For example, the fuel-efficiency record of the major US-market players is laid bare in one particularly compelling collection of graphs (above). More detail on by-manufacturer efficiency over the last three years can be found here. Other fun graphs: production breakdowns by vehicle size and type, a comparison of performance and efficiency by vehicle type, and a distribution of vehicles by weight for 1975, 1988 and 2010 (weights dropped from ’75 to ’88, and are now back to nearly 1975 levels). You can also check out production share by weight to find out that the sub-2,750 lb died sometime after the year 2000. You can even see the breakdown of FWD-RWD-AWD by vehicle type and pinpoint the moment that Subaru started making an impact on the market. All told, it’s an automotive data-gasm that will leave you a lot better informed about the state of the US market. And the perfect opportunity to make sweeping generalizations about the American car market. Enjoy!
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