Our six month sales by brand chart is a bit crowded, so we’ve broken out luxury brands for today’s COTD. Bloomberg assembled a grip of analysts who all say that Mercedes is going to sock it to Lexus this year… and this chart certainly proves that the opportunity is there. But then, the opportunity is there for BMW too, if Lexus so much as stops for a breath. One thing is for certain though: Ford may be ruling the mass market, Lincoln is the last stop before Volvo-ville as you work your way down the luxury volume ranking. That’s not great, but given a choice between a respectable luxury brand and a $2.6b first-half profit, I know what nine out of ten auto executives recommend.
Tag: New Cars

The walrus is famous for being immense, powerful, and oddly lugubrious, and for having a mouth that looks like Wilford Brimley after nine hours of cunnilingus. Ditto the Lincoln.
Vanity Fair’s Brett Berk channels his inner Robert Farago and comes up with one of the more memorable metaphors we’ve heard in some time. Word to Berk: PR folk don’t tend to celebrate the metaphorical marriage of the ridiculous and the sublime as much as… well, everyone else. As we’ve learned the hard way here at TTAC, sexually-tinged metaphors can get you cut off from the press car gravy train faster than you can say “flying vagina.” On the other hand, devastatingly accurate metaphors delivered with little regard for their consequences have a way of endearing you to a the best kinds of readers. And that, after all, is what this whole auto writing this about. Consider us inspired!
Via Twitter comes this, the first shot yet of the Dodge version of the new Jeep Grand Cherokee. Dodge won’t confirm whether the badly battered Durango name will grace its version of the JGC, but at least it’s clear that the brand is getting away from its truck-alike styling dependence. But with the new Grand Cherokee earning strong reviews, will Dodge’s (likely) decontented version be a letdown? It had better not be, because another big name from the SUV era is going to stake a claim in the mid-full CUV segment starting on Monday: Ford’s 2011 Explorer.

The automotive world largely yawned when Ford announced the 2011 Lincoln MKZ hybrid. After all, Ford already offered the Fusion and Mercury Milan in hybrid flavor, and the standard MKZ is hardly setting the world on fire with only 11,214 models sold in the first half of 2010. In search of a bigger publicity bump for its luxury hybrid, Ford has pulled a fun little gimmick out of its bag of tricks: the 2011 MKZ will offer a hybrid drivetrain for no price premium over the standard V6 version [press release here]. According to the AP [via Yahoo], this is the first time a manufacturer has offered hybrid and non-hybrid versions of the same car for the same price. And really, the move comes as no huge surprise. With Mercury on its way out, Ford doesn’t have to worry about the$35,180 MKZ Hybrid encroaching on the $32k Milan Hybrid, and if it had charged a hybrid premium, the MKZ hybrid could have cost closer to $40k where it would have faced tougher competition from better-established luxury brands. Besides, Lincoln needs to build some momentum somehow… but is value a good place to start rebuilding a worn-down luxury brand?
With Ford and Honda running away with the compact crossover segment, a tight pack of competitors is gathering around the 100k annual unit mark (graph after the jump). Hyundai has already thrown its redesigned Sorento into this fearsome battle with promising results so far (20k units YTD), but Kia’s Sportage has been battling in this segment since before it was cool. Literally. As far as we can tell, it’s the oldest continuously-sold compact CUV nameplate in the US market… which makes you wonder what a continuously-evolved Chevy Tracker might have become. Anyway, after years of Tracker-like neglect, Sportage is coming back with a fresh set of Peter Schreyer-tailored duds. Not to mention a direct-injection, turbocharged engine option (“270-plus horsepower” according to the press release), Bluetooth, and the UVO hands-free system (think SYNC). As you can imagine, the price has gone up some…
As a Nissan rep pointed out via email last night, yesterday’s Chart Of The Day hardly tells the whole story of “the other Japanese brand.” Since 1995, Nissan has made up for declining “core model” sales by catching the tail end of the SUV/Truck craze with its Titan/Armada/XTerra/Murano combo. And, as this graph shows, those four models gave the brand a big spike for most of the last decade before diving unceremoniously towards oblivion (with the exception of Murano). Since then, Nissan seems to be targeting the niche left open by Honda: small, value-laden, efficient cars like the Rogue and Versa are Nissan’s new meal ticket (in addition to the still-soaring Altima). With a new Versa-based Juke mini-CUV launching this Summer, Nissan is poised to continue building on that image, but it still has to contend with remnants of its “Japanese Pontiac” and “Mainstream BOF-slinger” identities. Can Nissan be all of these things at the same time? Or will the Leaf EV halo push Nissan towards ever smaller, more efficient offerings and a neo-Honda emphasis on compact value? We’re hearing that changes are underway at the highest levels of Nissan’s leadership… coming up with a coherent brand vision and product plan for Nissan North America will have to be one of the new team’s top priorities.
15 years ago, these six cars were Nissan. Sure, they sold a few Zs back in ’95 (4,176, actually), and the 240SX was in its last year of five-digit sales, but the Altima, Maxima, Sentra, Frontier, Quest and Pathfinder were the bread and butter. Needless to say, things change over 15 years, and though Nissan still sells all of these vehicles (excepting the Quest’s 2010 model-year hiatus), they’re no longer the reliable core they once were. Yes, the Altima sells like hotcakes, but Nissan’s other core nameplates are on steady steady glidepaths downwards, and the brand’s volume is largely being maintained by the introduction of new models. And as is so often the case in business, this shift away from core strengths is being rewarded by some thorough housecleaning. Having spent quite a bit of today talking with Nissan consultant Sharyn Bovat, yesterday’s rhetorical question What The Foxtrot Is Going On At Nissan is starting to come into sharper focus. Expect full reporting shortly, but in the mean time know this: things are changing at Nissan. My question now: does this chart help explain why?
We don’t know for sure, but Dr. Sanjay Mehta (TTAC commentator doctorv8, awesome brother) did the deal on a 2010 Corvette ZR1 for 0% while the autoblogosphere still had it in editing. Not that the Internet is slow, he’s just that damn fast.The dude’s been keeping tabs on the inventory nightmare, calling out for GMAC’s corrective action on the Corvette Forum…almost a month ago. It’s so nice to see the two brothers speak The Truth About Cars, via different media.
(Read More…)
What’s that? We still haven’t plumbed the depths of our bag-o-automotive-sales-data thoroughly enough to have published annual sales for the Toyota Prius? Well, here it is, my truth-starved friends: ten years of Prius sales, culminating in two consecutive years of falling sales. And granted, most nameplates are down over the last two years because the market has been down for a solid two years now. Also, if you think the downturn is due to gas prices, you’ve got a surprise waiting for you after the jump. So has the Prius lost its luster? Could the most culturally significant passenger car of the last ten years be running out of steam (or whatever it runs on), or is this just a natural drop in demand in line with a weak market?
The good news? GM is so desperate to move Corvettes, it’s decided to give you $3k back or 0% financing on every single new ‘vette, including the world-beating ZR1. The bad news? You have to build the engine yourself. Also, this won’t exactly help GM climb off its throne as the reigning king of incentive spending. But hey, if $106k for a Corvette was sounding a little ridiculous, at least the price point has effectively fallen to $103k. If you’ve been on the fence over that three thousand dollars, it’s time to adjust your spreadsheet accordingly. [ZR1 incentives explained after the jump]
Automotive News [sub] reports that the Acura RL is about to be canceled in the Japanese market, where it is sold as the Honda Legend. Considering that Acura’s range-topper sold only 872 units this year so far. For comparison, that’s less than even its weakest competitors like the Cadillac STS (2,145 units YTD)… only the Audi A8 (353 units YTD) sells worse in the full-size luxury sedan segment. According to the report, which originated in The Nikkei, Honda will also make its Civic a hybrid-only model in Japan, and will cancel its Elysion 8-passenger van. With Honda announcing its mid-term product plans next week, we’re sure to hear more about this shortly… in the meantime, would anyone miss the RL?

Bloomberg reports that GM has already pulled off one of the ballsiest IPO moves ever, by asking banks bidding to underwrite its IPO to use fees to subsidize the purchase of GM vehicles by its employees. According to the report, a GM document sent to bidding banks solicited
ideas as to how we can use the IPO to reposition GM and its vehicles within the investment community including your firm’s willingness to reinvest any portion of any underwriting fees into the purchase of GM vehicles for your employees and/or company use.
Edmunds has released its “true cost of incentive” index for June [via BusinessWire], and once again, GM took the top spot, followed by Chrysler and Ford. Detroit accounted for 61.3 percent of all incentive spending last month, with Trucks and Premium Sportscars attracting the highest incentives.Says Edmunds’ Michelle Krebs:
Last June incentives were sky-high, but sales were depressed, as buyers waited for details on the Cash for Clunkers program. If the industry was truly recovering, we would be blowing last June’s car sales numbers out of the water












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